Economic woes weigh on the markets and gold trades higher

Last Updated on Thursday, 25 August 2011 16:50

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US Equities dropped significantly as more disappointing economic data sent shockwaves across the capital markets sending Gold to record levels at $1828/oz, while 10-Year Treasury Yields dropped below two percent for the first time in history.
Volume was heavy, but remained below the record levels seen last week, as real money and big funds stepped back into the market to liquidate their positions. The USD rallied against the AUD and the CAD after heavy risk aversion saw commodity prices fall. Treasuries saw another wild session, with heavier buying into the long end.
Materials were the session laggard as Metals & Miners – Alcoa ($11.51, -6.1%), Cliffs Natural Resources ($70.05, -7.0%), Freeport ($42.86, -8.1%), Peabody Energy ($44.07, -7.2%) – were subject to fierce selling
Hewlett Packard ($29.51, -6.0%) fell more than ten percent after the close as tech giant’s forecasts missed analyst estimates on a slump in sales of consumer units.
Earlier, the bellwether had spiked as much as eighteen percent off its session low after announcing plans to acquire British-based Autonomy for $10.3 billion.
Financials were dumped yet again as European constituents fell the most since 2008. Commercial – Bank of America ($7.01, -6.0%), Citigroup ($27.98, -6.3%), JPMorgan Chase ($35.19, -3.8%)
Dow Jones +.0.04% S&P500 +.09% NASDAQ -0.47%

Published by Spectrum Live Pty Ltd | www.spectrumlive.com

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