Global shares move higher, commodities move higher and Rio Tinto extends upon recent gains, ASX futures up 29 points

Firming global equity and commodity markets are continuing to provide Australian stock market investors with great gains. Today's first chart shows year-to-date returns of Australia's ASX 200 (orange) and the US S&P 500 (black). As measured by these two cash index instruments, the disparity for 2014 performance now stands at 7.97%, with a weakening Australian dollar and the RBA in rate cutting mode fuelling investment in the  Australian stock market. In just a few weeks Rio Tinto (RIO) has lifted 18.8%, with a significant portion of that gain coming on Friday after it announced its full-year earnings results along with a $500 million off-market buyback. As outlined late last week, if members are keen to get involved in the off-market buyback but don't want the risk of RIO's price movements, you can always open a Rivkin CFD account and take out a short position on the stock to match your purchase. Click here to open an account.

While previously the Australian stock market had been supported by the money pouring into ASX 50 stocks with high yields and franking credits, we're seeing now the double-whammy of resurging interest in resource stocks. If you take a glance at today's Global Markets matrix at the bottom of this update, you'll see that commodity gains are beginning to impact the rolling monthly figures, with particular regard to crude oil. Iron ore still has a way to go.

In today's second chart you can see that copper has moved higher from its lows and the last chart shows the US dollar continuing to trade sideways, taking the pressure off commodity prices that was present during the US dollar's rally.

Today‚Äôs charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to get your free $100,000 demo account.

Upcoming economic announcements: Japanese GDP out at 10:50am, Sydney time.

comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice, securities and derivatives dealing services and accounting administration services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.