05 Feb 10 : BIG BIG Drop in Market

Pre-Market Open Commentary for 05 February 2010

DJIA: 10002.18 -268.37
Nasdaq Composite: 2125.43 -65.48

Concerns about the impact of growing debt crisis in Europe (particularly Greece, Spain and Portugal) on the global economy spooked the US market, dragging down the US market. Debt woes also propelled the dollar higher which caused dollar-traded commodities to slip. Weak jobs reports further pressured the market. New claims for unemployment rose to 480,000 last week, worse-than-expectations of 455,000 claims, from a revised 472,000 claims the previous week while continuing claims rose to 4,602,000, again weaker-than-expectations of 4,581,000, from 4,600,000 the previous week.

Toyota reported improved quarterly earnings and also lifted estimates for the quarter ending March. However, the results did not account for the cost of global recall on vehicles due to gas pedal problems of up to US$2 bil.

All the major indices plunged, with the Dow Jones Industrial Average losing 2.61% and S&P 500 fell 3.11% to close at 1,063.11. Nasdaq composite lost 2.99%.

Friday brings the highly anticipated January jobs report. Market expectations are that employers have added 13,000 jobs to the payrolls in January after cutting 85,000 in December and unemployment rate is expected to hold steady at 10%.

US light crude oil for March delivery fell US$3.84 to settle at US$73.14 a barrel.



In Singapore today:

Fresh concerns over the failure of heavily indebted European nations to service debts having a contagious impact on the global financial system derailed the nascent rally across Asian markets on Thursday. Further, investors were cautious ahead of the January US jobs data due after the Asian markets close. The STI index lost 19.86 points, or 0.72% to 2,744.98. For every stock that gained, 2.21 fell. Turnover was low with 1.27bil shares with a value of $1.11bil traded.

Among the heavy decliners were banking shares with DBS down 30 cents to $14.20, UOB lost 14 cents to $18.40 and OCBC down 10 cents to $8.25. Gainers included Jardine C&C, up 42 cents to $25.72, Goodpack and CWT.

Expect the local bourse to retreat today taking cues from the sharp overnight Wall Street tumble as investor worry about the indebted problems in the Eurozone. All eyes will be on the closely watched US jobs report due tonight.

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Mid Day February 5. Asian markets sharply lower as investors rushed for exits.

Wall Street tanked with its key indices falling between 2.5 and 3.1 per cent on worries about the US job market and growing fears about European debt. The brutal sell off ahead of the key US employment data later today left a lot of anxiety among Asian traders as markets here opened sharply lower. It was fear and panic as traders rushed for the exits. The STI index tumbled 53.65 points at 2691.33 amid forecasts that it may settle between 2500 and 2600 points. For every stock that rose, 11 fell. Turnover was 1.1 bil shares with a value of $882mil traded.

Supports broken and confidence shaken, weary investors dumped stocks from the open bell after a horrid brutal sell-off on Wall Street. `No point trying to guess where the bottom is' a remisier said. the US dollar rallied amid a rush to a safe haven currency and commodities tumbled.

Resources stocks here took a beating as shares of Straits Asia, Indoagric, Wilmar, Noble, Golden Agric and Olam fell between 2 and 14 cents. Jardine C&C fell 80 cents at $24.96 and was tracked by Jardine Matheson, SIA, UOB, Jardine Strategic, SGX, DBS, Keppel Land and Keppel Corp that shed between 9 and 80 cents.

On the balance, shares of Great Eastern, SATs Services, Vicom, Teledata and GP Bat rose between half and 36 cents.

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Market close Feb 5. STI closes the week below the 2,700 level

The negative trading of the U S index futures kept Asian markets down in the afternoon session after the markets opened sharply lower in the morning. It was fear and panic as traders rushed for the exits. The STI index closed 61.42 points lower at 2,683.56 amid some comments that the support level may be found closer to 2500 and 2600 points, which means further downside from here. For every stock that rose, nearly 6 fell. Turnover was 2.16 bil shares with a value of $2bil traded.

Supports broken and confidence shaken, weary investors dumped stocks from the open bell after a horrid brutal sell-off on Wall Street. „No point trying to guess where the bottom is‰, a remisier said.

Resources stocks here took a beating as shares of Straits Asia, Indoagric, Wilmar, Noble, Golden Agric and Olam fell between 2 and 14 cents.

Jardine C&C fell 46 cents at $25.26 and was tracked by Jardine Matheson, SIA, UOB, Jardine Strategic, SGX, DBS, Keppel Land and Keppel Corp that shed between 9 and 82 cent s .

On the balance, shares of Great Eastern, SATs Services, Vicom, Teledata and GP Bat rose between half and 36 cents.