Nikkei pulls back from recent high as momentum slows

Friday, November 29, 2013

ADM’s $2bn takeover of GrainCorp has been blocked by the Australian government leading to a massive 22% decline in the share price after Treasurer Joe Hockey stated the “proposal has attracted a high level of concern from stakeholders and the broader community.” GrainCorp had been trading close to the A$12.20 initially offered by ADM in April but prices softened throughout November as the government hinted that it would block the deal from going ahead before plummeting on the announcement.

Asian markets slipped slightly during overnight trading with Japanese stocks paring gains made earlier this week after closing at their highest level in almost six years in the previous session. Despite the Nikkei closing at 15,727 on Thursday, supported by a weaker yen, the index fell 0.41% on Friday as momentum from positive US jobless claims earlier this week started to fade. The Nikkei has gained 8.8% this month while the TOPIX has increased 4.9% as a weaker yen, dropping to a six month low of 102.61 against the dollar and a five year low of 139.71 against the euro, supports exporters.

Aluminium prices dropped to a four year low as supply continues to outweigh demand despite producer efforts to scale back production. 3-month LME futures prices have declined for the fifth straight session, losing 1.8% this week and closing at $1,754/tonne yesterday. Copper prices also closed lower as the 3-month price briefly moved below $7,000/tonne before closing at $7,020 yesterday despite LME warehouse inventories declining for the 19th session to 429,200 tonnes.

Graincorp share price plummets after takeover is blocked

GNC AU Equity Graincorp Ltd 30 2013 11 29 07 18 05

Yen hits 6 month low against USD

JPY Curncy Japanese Yen Spot 2013 11 29 07 40 58

Yen touches 5 year low against EUR

EURJPY Curncy EUR JPY X RATE 2013 11 29 07 45 43

Aluminium prices drop to a four year low on ample supply

LMAHDS03 Comdty LME ALUMINUM 3 2013 11 29 07 47 18

Copper prices fail to gain support from declining warehouse inventories

NLSCA Index LME CLS Copper 2013 11 29 07 58 42

Events for today: Friday, 29 November 2013

1000

EZ

Oct

Unemployment Rate

1530

US

w/e

EIA Nat Gas

LT: 

Nov Coffee (LIFFE)

Dec  Heating Oil & RBOB (NYMEX)

FN: 

Dec  Copper, Gold & Silver (COMEX)

View Economic Market Calendar

More from: Kash Kamal