MARKET TALK: S&P/ASX 200 Offshore Leads Bullish

22nd Jul 2010 00:53

2353 GMT [Dow Jones] S&P/ASX 200 offshore leads bullish, with overnight SPI 200 futures up 1.5% to 4412.0 on strong U.S. earnings reports and better-than-expected European and U.S. economic data. DJIA rose 2.0% to 10322.3, S&P 500 up 2.3% to 1093.67, Nasdaq up 2.7% to 2245.89. CBOE VIX fell 3.9% to 24.63. In Europe, Composite Purchasing Manager's index and industrial orders rose unexpectedly. On Wall Street, earnings from Caterpillar, 3M, AT&T and UPS beat expectations, while both Caterpillar and UPS upgraded guidance. U.S. June home sales fell to 5.4 million vs 5.2 million expected. Weekly jobless claims rose to 450,000 vs 464,000 expected. S&P 500 Industrials rose 3.1%, with Boeing up 5.4% after Airbus increased its order intake target, 3M up 3.0%, Caterpillar up 1.7%. S&P 500 Financials up 3.1%, with KBW Bank index up 3.9%. S&P 500 Materials up 2.3%, with Alcoa up 2.2%, Freeport up 4.1%, US Steel up 4.3% and BHP Billiton (BHP.AU) ADRs rose to equivalent A$39.69 vs local close at A$38.88. London-listed BHP up 2.4%, Rio Tinto (RIO.AU) up 2.1%. S&P 500 Energy up 2.2%, with Exxon up 2.1%. S&P 500 Consumer Discretionary up 3.1%, with UPS up 5.2%, FedEx up 6.1%. Nymex crude up US$2.74 at US$79.30 on upbeat U.S. corporate earnings and Gulf of Mexico hurricane potential. Spot gold at US$1196 vs US$1185.90 this time Thursday. EUR/USD at 1.2895 vs 1.2767. AUD/USD at 0.8932 vs 0.8766. LME copper up 2.2%, zinc up 1.6%, aluminum up 2.0%, nickel up 3.9%. S&P/ASX 200 last 4374.7. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 22, 2010 19:53 ET (23:53 GMT)