Stock Market Analysis: Markets Lack Catalyst To Push Higher

August 28th, 20140

* US stock markets held at record levels, consolidate recent gains but trading volumes at the lowest level since early July.
* European stock markets consolidated overnight, after a couple of strong sessions.
* Asian stock markets rose on the back of positive US data and better earnings.
* Commodities prices fell. Gold prices held at US1,285, while crude-oil held near $US94. Copper fell to US3.193c, Iron Ore price fell to $US88.20.

The Australian sharemarket closed up 0.2% to 5651 a new six-year closing high yesterday, as a number of stocks held their dividends (Santos, Woodside) and the banks saw some buying ahead of equities options expiry today. Corporate remain the focus ofor investors (see ASX. The Financials and Materials sectors rose 0.6% for the session.

Local investors are looking at those companies reporting earnings today: Adelaide Brighton (ABC), Paladin (PDN), Mac Atlas Roads (MQA), Perpetual (PPT). Qantas has reported a loss of $2.8 billion after major writedowns.

The SPI 200 futures fell -0.3% to 5,615, giving a negative lead for the ASX market today, as the the US and Europe eased overnight. The 5640 level will be key for the ASX200 today. The Australian dollar rose to US93.3c. Remember options expiry today.

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Gold find support, despite the strong US dollar.

US Markets

US stock markets held at record levels, consolidate recent gains but trading volumes at the lowest level since early July.

The three benchmark indexes all finished flat for the session, after rising level of the past fourteen sessions. The US market is benefiting from a flight to safety, on the back of optimism that central banks will remain accommodative and the economy continues to improve. The S&P500 held at the 2000 level. The Nasdaq is trading at fourteen year highs.

All ten S&P500 sectors finished in the flat, with the exception of the Utilities sectors which rose 1.1.% for the session. Crude oil held above its seven month low. The Nasdaq Bio-tech index remained at its highest level on record and has now risen over 20% from its February lows.

The US earnings season is complete with the S&P500 stocks, showing 7% on year growth. Of the S&P500 companies reported 75% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed up 0.1% at 17,122 the S&P500 flat at 2,000 and the NASDAQ closed flat at 4,569, while the 10-year Treasuries eased to 2.36%, around twelve month lows.

European Markets

European stock markets consolidated overnight, after a couple of strong sessions. Russian and Ukrainian talks are progress, but traders were cautious after reports that the ECB May not by introducing QE in its next September meeting.

The Stoxx Europe 600 rose another 0.1%, building on the 1.8% gains from the prior two session, to reach a one month high, as investors celebrated the ECB posture on a QE program by the end of the year. The index has now risen nearly 6% from its five month low, hit in early August, as geopolitical concerns have eased and the possibility of deflation near-term gives the ECB room to add stimulus to the eurozone.

Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg. The earnings season is complete so traders are looking for additional new catalysts to support the recent rises. Across the region the Telecoms were in focus on the back of M&A activity.p, while Airline and Travel stocks were strong. The banking sector heeled on to gains on the back of the speculation over the ECB asset buying program.

ECB President Draghi has identified that the eurozone economy is faltering and called for governments to do more to help the eurozone. Inflation is at five year lows and falling inflation is a drag on economic activity as companies, consumer and investors withdraw spending in anticipation of lower prices in the future.

The German market eased, after rising 2.6% rise of prior two session. Traders reacted to the fall in German consumer confidence to 8.6, however discussions continued between Russia and the Ukraine and a negotiated peace has been reached over the Gaza Strip. The London market held at seven week highs.

For the session the German DAX 30 closed down -0.2% at 9,569, the UK the FTSE 100 closed up 0.1% at 6,830, the French CAC 40 closed up 0.1% at 4,395, while the Spanish market closed up 0.1% at 10,837.

Asian Markets

Asian stock markets rose on the back of positive US data and better earnings.

The MSCI Asia Pacific Index rose 0.3% for the session, just 1% below its six year highs. Across the region the Tech and Auto companies provided support. Equity valuations have reached their highs for the year, as traders bet on the accommodative stances from central banks will continue.

The Chinese market rose for the first time in three sessions and is still up over 8% for the year and has rebounded 11% since the mid-March lows, on the hopes that the central bank will be prompted to add stimulus. There are ten companies that will IPO this week, which will drain liquidity from the equities market in the short-term.

The Japanese market was flat, as discussion continue over the nation’s ballooning energy bill, since its 48 nuclear reactors have been shutdown since the 2011 tsunami and Fukushima plant disaster.

The Hong Kong market fell below 25,000, recording its biggest two session pullback in three week, but the index is still up 20% from its March low. Casino stocks weighed after Morgan Stanley downgraded revenue projections for Macau.

For the session the Shenzhen Composite up 0.2% to 2,327, the Hong Kong Hang Seng closed down -0.6% at 24,918, and the Japanese Nikkei closed up 0.1% at 15,534, while the South Korean KOSPI closed up 0.3% at 2,074.

Commodities

The Dollar Index fell to 82.46 (backing off its highest level for a twelve months) on a lower Euro, and the Aussie Dollar rose to US93.4c. Commodities prices fall.

Overnight the NYMEX WTI Crude up 0.1% to $US93.88, the COMEX Copper closed down -0.6% at 3.193, the COMEX Gold closed down -0.1% at $US1,283.50.

ASX News

BCI – BC Iron the Pilbara miner, WA has shrugged off falling iron ore prices to record a 51% increase in profit amid strong sales.

BLD – Boral reports net profit up nearly 200% and says housing market recoveries in Australia and the US should help it go from strength to strength after the building products maker swung back into the black.

FLT – Flightcentre the travel agency reports profit down 16%, but expects to grow its pre-tax profit by up to 8% over the next 12 months despite taking a hit from cheaper airfares and a downturn in consumer spending following the federal budget.

HSO – Healthscope Australia’s second largest private hospitals operator, says all its businesses are performing strongly, and its hospitals division has strong growth opportunities.

LLC – Lend Lease reports profit up 50%, and says it wants to win more work overseas, thanks to the sale of its interest in a major UK shopping
centre.

FXJ – Fairfax and Media giant Nine are taking on the likes of Netflix with a new a $100 million online video streaming service.

SWM – Seven West Media the TV, magazine and newspaper company has returned to profit, making $149 million profit in FY14 helped by cost cuts and improved television earnings.

SVW – Kerry Stokes’ media and industrial services company Seven Group has been hit by the mining downturn, causing a -46% drop in annual profit.

WFD – Westfield Corporation the Shopping centre giant has raised operating income from its shopping centres around the world by more than five per cent in the first half of 2014.

WHC – Whitehaven Coal has declared victory over the protesters trying to halt its new mine, saying it could be selling coal from the project sooner than planned.

WOR – WorleyParsons’ the mining services company full year profit has fallen -23% to $249 million as it tries to improve margins.

Market Summary

ASX – to open lower
US & Europe – consolidate

ANZ 0.5%, NAB 0.6%, NWS 0.2%, WPL -0.5%, OSH 0.3%
AWC 0.4%, BHP 0.7%, RIO -0.5%, NEM 0.1%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

Reporting this week:

Friday: Harvey Norman (HVN) Perseus(PRU) Virgin (VAH), Woolworths (WOW).

Stock Market Analysis: Bulls Rule As S&P500 Closes At 2000

August 27th, 20140

* US stock markets closed at new record levels, on the back of optimism that central banks will remain accommodative and the economy continues to improve.
* European stock markets continued higher for a second session, as the ECB is getting closer to introducing eurozone QE, which traders are speculating will come in the September meeting.
* Asian stock markets saw some profit taking after a three session rally, as equity valuations reached their highs for the year, as traders bet on the accommodative stances from central banks will continue.
* Commodities prices rose. Gold prices rose to $US1,285, while crude-oil rose to near $US94. Copper rose to US3.212c.

The Australian sharemarket closed up 0.1% at 5637, as miners continued to weigh, down another -0.2%, on the back of lower iron ore and crude oil prices. Rio and Fortescue fell another -0.7%. The REIT sector fell -1.1% and the Energy sector fell 0.4%, while the Healthcare sector rose 0.7% and the insurers had a solid session. Traders failed to be encouraged by the sharp positive leads from overseas markets. The earnings season continues into this week and there are around 60 companies going Ex-div in the next two weeks.

Local investors are looking at those companies reporting earnings today: BC Iron, Beadell Resources (BDR), Boral (BLD), Energy Developments (ENE), Flightcentre (FLT), Lend Lease (LLC), Ramsay Health (RHC) Seven West Media (SWM), Whitehaven Coal, (WHC) Worley Parsons (WOR).

The SPI 200 futures rose 0.2% to 5,605, giving a positive lead for the ASX market today, as the the US and Europe pushed higher again overnight. The 5650 level will be key for the ASX200 today. The Australian dollar rose to US93.1c.

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S&P500 closes above 200 for the first time.

US Markets

US stock markets closed at new record levels, on the back of optimism that central banks will remain accommodative and the economy continues to improve.

The three benchmark indexes all finished up around 0.2% for the session. The US market is benefiting from a flight to safety, however trading volumes remain low, down 20% below the monthly average. The S&P500 hit a 30th record high closing above the 2000 level for the first time. The Nasdaq is trading at new fourteen year highs.

Seven of the ten S&P500 sectors finished in the green for the session, the Healthcare and Energy sectors led the gains up 0.5%, as M&A activity boosted sentiment as Burger King made a bid for Tim Horton the Canadian fast food business and crude oil recovered from a seven month low. The Nasdaq Bio-tech index rose another 1.3% to its highest level on record and has now risen over 20% from its February lows. Utilities and Staples sectors fell -1.2% and -0.1% respectively. The VIX eased -0.6% to 11.6, but is down -15% for the year.

In economic news US durable goods orders surged 23% in July the biggest gain on record, on the back of aircraft orders, while the Consumer Board consumer confidence index rose to 92.4 in August, the highest level since the start of the GFC.

The US earnings season is 98% complete with the S&P500 stocks, showing 7% on year growth. Of the S&P500 companies reported 75% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed up 0.2% at 17,107 the S&P500 up 0.1% at 2,000 and the NASDAQ closed up 0.3% at 4,570, while the 10-year Treasuries rose to 2.40%, off twelve month lows.

European Markets

European stock markets continued higher for a second session, as the ECB is getting closer to introducing eurozone QE, which traders are speculating will come in the September meeting.

The Stoxx Europe 600 rose another 0.7%, building on the 1.1% gains from the prior session, as investors celebrated the ECB posture on a QE program by the end of the year. The banking sector led the gains on the back of the speculation over the ECB asset buying program. The index has now risen nearly 6% from its five month low, hit in early August, as geopolitical concerns have eased and the possibility of deflation near-term gives the ECB room to add stimulus to the eurozone.

ECB President Draghi has identified that the eurozone economy is faltering and called for governments to do more to help the eurozone. Inflation is at five year lows and falling inflation is a drag on economic activity as companies, consumer and investors withdraw spending in anticipation of lower prices in the future.

The German market rose another 0.8% building on the 1.8% rise of prior session, as discussions continued between Russia and the Ukraine and a negotiated peace has been reached over the Gaza Strip. The French market gained another 1.2%. Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg. The London market returned from a bank holiday, playing catchup.

For the session the German DAX 30 closed up 0.8% at 9,588, the UK the FTSE 100 closed up 0.7% at 6,882, the French CAC 40 closed up 1.2% at 4,393, while the Spanish market closed up 1.8% at 10,690.

Asian Markets

Asian stock markets saw some profit taking after a three session rally, as equity valuations reached their highs for the year, as traders bet on the accommodative stances from central banks will continue.

The MSCI Asia Pacific Index eased -0.2% for the session, easing back from six year highs. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings.

The Chinese market eased again, after it had booked a sixth straight week of gains and is still up over 8% for the year on the hopes that the central bank will be prompted to add stimulus. The Japanese market saw profit taking, as discussion continue over the nation’s ballooning energy bill, since its 48 nuclear reactors have been shutdown since the 2011 tsunami and Fukushima plant disaster. The Hong Kong market eased but held above 25,000 and is up 20% from its March low.

For the session the Shenzhen Composite down -0.8% to 2,324, the Hong Kong Hang Seng closed down -0.4% at 25,074, and the Japanese Nikkei closed down -0.6% at 15,521, while the South Korean KOSPI closed up 0.4% at 2,068.

Commodities

The Dollar Index edged higher to 82.67 (holding at its highest level for a eleven months) on a lower Euro, and the Aussie Dollar rose to US93.1c. Commodities prices rose.

Overnight the NYMEX WTI Crude up 0.6% to $US93.80, the COMEX Copper closed down -0.8% at 3.212, the COMEX Gold closed up 0.5% at $US1,285.20.

ASX News

BLY – Boart Longyear the mining services company is considering selling out to private equity after suffering a fourth consecutive half year loss, saying it will sell its workwear business to Wesfarmers for $180m.

MTU – M2 Group the company behind internet providers iPrimus and Dodo has lifted annual profit 53% and expects growth of up to 20% in the year ahead as it continues to add new customers.

NHF – NIB the health insurer Health insurer expects further earnings growth this financial year after raising its profit 4% to $69.9 million in FY14.

PBG – Pacific Brands the struggling clothing maker is selling its workwear business after writedowns and weaker profit margins blew its full year loss out to $224 million loss.

SCG – Scenter Group the owner of Westfield’s Australian and NZ shopping centres raised its half year operating income by 2.3% and expects a similar increase for the rest of the year.

SFH – Speciality Fashion the women’s fashion retailer behind the Katies chain has suffered a dip in annual profit but says sales have improved at the start of the new financial year.

VRT – Virtus Health the IVF provider has beaten its profit forecast and expects demand for assisted reproductive services to increase as women wait longer to have children.

UGL – United Group is expecting an improved outlook for its engineering business, after raising its full year profit more than 70%.

Market Summary

ASX – to open higher
US & Europe – higher

ANZ 0.1, NAB 0.7%, NWS -0.4%, WPL 0.9%
AWC -0.6%, BHP -0.5%, RIO -0.8%, NEM 2.0%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

Reporting this week:

Thursday: Adelaide Brighton (ABC), Paladin (PDN), Mac Atlas Roads (MQA), Perpetual (PPT)

Friday: Harvey Norman (HVN) Perseus(PRU) Virgin (VAH), Woolworths (WOW).

Stock Market Analysis: Markets Push Higher On M&A And Stimulus

August 26th, 20140

* US stock markets hit new record levels after their best week in four months, on the back of optimism that central banks will remain accommodative.
* European stock markets surged pushing on from their best week gains in six months, as ECB President Draghi made statements that indicated the ECB is getting closer to introducing eurozone QE.
* Asian stock markets extended last week’s gain, as traders bet on the accommodative stances from central banks.
* Commodities prices mixed. Gold prices eased to $US1,278, while crude-oil held around $US93. Copper rose to US3.24c.

The ASX200 closed down -0.3% at 5628. The falls were led by the miners down -1%, while the Banks weighed -0.4%, but support came from the Tech and Utilites sectors up over 0.5% for the session. The earnings season continues into this week and there are around 60 companies going Ex-div in the next two weeks.

Commodity prices are being weighed down by the surging US Dollar, which is at its strongest for nearly a year. Gold held below the $US1,280 level, Iron Ore prices fell to around $90, two month lows, Copper prices rebounded sharply from their one month lows, while Crude oil prices are down again down -12% in the past two months.

Local investors are looking at those companies reporting earnings today: Lend Lease (LLC) Pacific Brands (PBG) Thorn Group (TGA), Virtus Health (VRT).

The SPI 200 futures rose 0.1% to 5,604, giving a positive lead for the ASX market today, as the the US and Europe pushed higher into the new week. The 5650 level will be key for the ASX200 today. The Australian dollar eased to US92.9c.

US Markets

US stock markets hit new record levels after their best week in four months, on the back of optimism that central banks will remain accommodative. Traders celebrated news that the Fed Chair Janet Yellen in her speech at Jackson Hole, Wyoming, reiterated that the slack in the US jobs market is still a concern and the Fed remains supportive.

The three benchmark indexes all finished up around 0.5% for the session. The US market is benefiting from a flight to safety, however trading volumes were over 20% below the monthly average. The S&P500 hit a 29th record high trading above the 2000 level for the first time. The Nasdaq is trading at new fourteen year highs.

All ten S&P500 sectors finished in the green for the session, the Financials and Energy sectors led the gains up 0.9%, as M&A activity boosted sentiment as Burger King is in talks to buy Tim Horton. The Healthcare sector rose 0.8% on M&A activity with Roche. Utilities and Staples rose 0.7%. The VIX rose 2% to 11.7, but is down -15% for the year.

The US earnings season is 98% complete with the S&P500 stocks, showing 7% on year growth. Of the S&P500 companies reported 75% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed 0.4% at 17,076 the S&P500 up 0.5% at 1,998 and the NASDAQ closed up 0.4% at 4,557, while the 10-year Treasuries eased to 2.38%, off twelve month lows.

European Markets

European stock markets surged pushing on from their best week gains in six months, as ECB President Draghi made statements that indicated the ECB is getting closer to introducing eurozone QE.

The Stoxx Europe 600 surged 1.1%, building on the 2.1% gains from last week, as investors celebrated the ECB posture that the ECB is looking to introduce a QE program by the end of the year. The index has now risen 6% from its early August low, as geopolitical concerns have eased and the possibility of deflation near-term.

In economic news eurozone inflation slowed to 0.3% in August, substantially below the 2% forecast. Later in the week we will see employment readings and economic confidence figures.

Falling inflation is a drag on economic activity as companies, consumer and investors withdraw spending in anticipation of lower prices in the future. ECB President Draghi called for governments to do more to help the eurozone. The eurozone is tentatively recovering from a recession, but the economy is faltering due the ongoing geopolitical crises, inflation is at five year lows and the unemployment remain near the highest level on record.

The German market jumped 1.8% building on the 2.7% rise of last week, as bargain hunters bought stocks with exposure to Russia and the Ukraine which had become oversold. The French market gained over 2%. Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg.

The London market was closed for a bank holiday, after rising 1.3% last week and recorded its best five session rally since April.

For the session the German DAX 30 closed up 1.8% at 9,510, the UK the FTSE 100 closed at 6,775, the French CAC 40 closed up 2.1% at 4,342, while the Spanish market closed up 1.8% at 10,690.

Asian Markets

Asian stock markets extended last week’s gain, as traders bet on the accommodative stances from central banks will continue after.

The MSCI Asia Pacific Index closed rose 0.1% for the session, after rising 0.5% last week, closing around its six year highs. Airline stocks led the gains. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings.

The Chinese market eased after, booking a sixth straight week of gains the best winning streak since 2012 and holds at eight month highs, up 9% for the year on the hopes that the central bank will be prompted to add stimulus. Sinopec reported a 7.5% rise in 1H14 profits.

The Japanese market recovered extending two weeks of gains, after Toyota reported better and the BoJ governor said that central banks must fight deflation by all means necessary. The Hong Kong market held above 25,000 and is up 20% from its March low.

For the session the Shenzhen Composite down -0.4% to 2,342, the Hong Kong Hang Seng closed up 0.2% at 25,167, and the Japanese Nikkei closed up 0.5% at 15,613, while the South Korean KOSPI closed up 0.2% at 2,060.

Commodities

The Dollar Index edged higher to 82.57 (holding at its highest level for a eleven months) on a lower Euro, and the Aussie Dollar eased to US92.9c. Commodities prices mixed.

Overnight the NYMEX WTI Crude fell -0.3% to $US93.40, the COMEX Copper closed up 0.5% at 3.24, the COMEX Gold closed down -0.1% at $US1,278.90.

ASX News

AVG – Australian Vintage the company behind McGuigan Wines has signed a long-term distribution agreement with a major Chinese food company.

BSL – BlueScope Steel Australia’s biggest steel maker, was punished -13% after a worse-than-expected full year loss of $82.4 million, after higher restructuring costs offset improved earnings.

CTX – Caltex the fuel supplier says it will cut 350 jobs over the next 12 months as part of a restructure of the business, after it reported 1H14 net profit to $173 million.

KMD – Kathmandu the adventure clothing retailer says its CEO is resigning.

MTU – M2 Group the company behind internet providers iPrimus and Dodo has lifted annual profit 53% and expects growth of up to 20% in the year ahead as it continues to add new customers.

NHF – NIB the health insurer Health insurer expects further earnings growth this financial year after raising its profit 4% to $69.9 million in FY14.

PFL – Patties Foods the frozen foods maker expects new products such as chunkier pies will help lift profit.

SPO – Spotless the property manager, catering and laundry firm expects to achieve strong earnings growth in the year ahead after beating revenue and profit forecasts in FY14.

UGL – United Group is expecting an improved outlook for its engineering business, after lifting its full year profit more than 70%.

Market Summary

ASX – to open higher
US & Europe – higher

ANZ -0.4%, NAB 0.3%, NWS 1.0%, WPL 0.6%
AWC 1.0%, BHP -0.4%, RIO 0.2%, NEM -1.6%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

Reporting this week:
Wednesday: BC Iron, Beadell Resources (BDR) Boral (BLD), Energy Developments (ENE), Flightcentre (FLT), Ramsay Health (RHC) Seven West Media (SWM), Whitehaven Coal, (WHC) Worley Parsons (WOR).

Thursday: Adelaide Brighton (ABC), Paladin (PDN), Mac Atlas Roads (MQA), Perpetual (PPT)

Friday: Harvey Norman (HVN) Perseus(PRU) Virgin (VAH), Woolworths (WOW)

Stock Market Analysis: Profit Taking Pares Solid Weekly Gains

August 25th, 20140

* US stock markets recorded their best week in four months,on the back of optimism that central banks will remain accommodative.
* European stock markets eased paring their best week gains in six months.
* Asian stock markets finished the week in the green again, as traders bet on the accommodative stances from central banks will continue after, weaker than expected Chinese manufacturing report.
* Commodities prices mixed. Gold prices eased to $US1,280, while crude-oil eased to $US93. Copper held at US3.228c.

The bulls were firmly in control again last week as the Aussie market is trading at six and a half year highs again. The ASX 200 had a fantastic bounce, with the ASX 200 closing up 4% from just two weeks ago at 5645, again testing the six and a half years highs. The local earnings season saw around seventy companies reporting this week and companies who offer increased dividends and/or buy backs being well rewarded. The earnings season continues into this week and there are around 60 companies going Ex-div in the next two weeks.

Commodity prices are being weighed down by the surging US Dollar, which is at its strongest for nearly a year. Gold fell below the $US1,280 level, Iron Ore prices fell to around $92, Copper prices rebounded sharply from their one month lows, while Crude oil prices drifted lower again to trade around $US94.

Some highlights of the earnings season so far include: Amcor FY profit up over 25%; Arrium the steel and mining group raised its FY profit up 83%; Aurizon’s the rail operator reported a -43% slumped in profit; Ardent Leisure boosted its profit by over a third; AGL Energy raised FY profit 52%; APN News raised half year profit 77%; Coca Cola has warned after a -16% slump in 1H15 profit; Fortescue Metals’ full year profit grew 56%; IAG expects to boost premiums by up to 20% as profits grew 59%. Mirvac tripled profit on improving housing market; Origin Energy increased net profit by 40%; NAB’s $1.6 billion cash profit was hit by provisions for its troubled UK business; Newcrest made a $2.2 billion FY net loss on the back of write downs; Oil Search increased 1H15 net profit by 34% and has forecast higher production; The Reject Shop says its profit fell by a quarter in FY14; Sydney Airport doubled profit and will capitalise on traffic growth; Treasury Wine Estates has suffered a $100 million full year loss; Wesfarmers will give an extra $1.1 billion back to shareholders after raising its full year profit 19%; Woodside Petroleum has increased half-year net profit by 27%.

Local investors are looking at those companies reporting earnings today: Bluescope (BSL),Caltex (CTX), Orora (ORA), NIB Holdings (NHF), Recall (REC), Sandfire (SFR), Spark Infrastructure (SKI), Unitied Group (UGL)

In last week’s Analyst’s Eye we discussed Taking Profits in the Trade Management Process, where we identify some signals that could indicate it is time to book some profits.

The SPI 200 futures fell 0.2% to 5,600, giving a negative lead for the ASX market today, as the the US and Europe pushed higher last week. The 5630 level will be key for the ASX200 today. The Australian dollar rose to US93.2c.

temp
The US Dollar is strong and trending higher, a headwind for commodity prices.

US Markets

US stock markets recorded their best week in four months,on the back of optimism that central banks will remain accommodative.

The three benchmark indexes all finished up around 1.7% for the week. The US market is benefiting from a flight to safety. The S&P500 has rebounded over 4% from its early August lows and is back at record highs and near the 2000 level. The Nasdaq is trading at fourteen year highs.

Seven of the ten S&P500 sectors finished in the red for the session, the Energy sector led the falls down -0.7%, the Financials Materials, Utilities and Industrials fell around -0.4%. For the week the Home builders surged around 5% while the Financials and Industrials outperformed up 2.3%. The VIX eased  and is down -16% for the year.

In economic news the Fed Chair Janet Yellen in her speech at Jackson Hole, Wyoming, reiterated that the slack in the US jobs market is still a concern.

The US earnings season is almost complete with the S&P500 stocks (98%) having reported, showing 7% on year growth. Of the S&P500 companies that have reported 75% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed down -0.2% at 17,001 the S&P500 down -0.2% at 1,988 and the NASDAQ closed up 0.1% at 4,552, while the 10-year Treasuries eased to 2.40%, off twelve month lows.

European Markets

European stock markets eased paring their best week gains in six months.

The Stoxx Europe 600 eased -0.2%, closing up 2.1% for the week, as investors speculate on the ECB introducing a QE program by the end of the year. The index has now risen 4% from its early August low, as geopolitical concerns have eased. The Financials sector rose the most in a month last week.

In economic news ECB President Draghi called for governments to do more to help the eurozone, following PMI data that showed eurozone manufacturing activity slowed in August, with the PMI reading falling to 52.8 (down from 53.8). UK retail sales grew 0.5% in July. The eurozone is tentatively recovering from a recession, but the economy is faltering due the ongoing geopolitical crises, inflation is at five year lows and the unemployment remain near the highest level on record.

The German market jumped 2.7% for the week, while the French market gained 1.8% and the Spanish market was up 2.7%. Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg.

The London market closed up 1.3% for the week and recorded its best five session rally since April and recovering from some profit taking after the BoE minutes revealing a number of officials are arguing for an interest rate rise.

For the session the German DAX 30 closed down -0.7% at 9,339, the UK the FTSE 100 closed down -0.1% at 6,775, the French CAC 40 closed down -0.9% at 4,252, while the Spanish market closed down -0.5% at 10,500.

Asian Markets

Asian stock markets finished the week in the green again, as traders bet on the accommodative stances from central banks will continue after, weaker than expected Chinese manufacturing report.

The MSCI Asia Pacific Index closed rose -0.1 for the session, rising 0.5% for the week, closing just below its six year highs. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings.

In economic news last week HSBC reported its Flash PMI fell to a three month low of 50.3 in August (down from 51.7), below expectations and there was data that showed a slump in credit expansion and falling growth in investment spending in July.

The Chinese market rose 0.6% for the week, booking a sixth straight week of gains the best winning streak since 2012 and holds at eight month highs (up 11% from its May lows), on the hopes that the central bank will be prompted to add stimulus to the economy given the recent weaker data.

The Japanese market fell for the session, paring its second week of gains, as steelmakers and builders weighed. The Hong Kong market rose 0.7% closing the week above 25,000 for the first time since May 2008 and is up 20% from its March low.

For the session the Shenzhen Composite up 0.5 to 2,365, the Hong Kong Hang Seng closed up 0.5% at 245,112, and the Japanese Nikkei closed down -0.3% at 15,539, while the South Korean KOSPI closed up 0.6% at 2,056.

Commodities

The Dollar Index edged higher to 82.34 (holding at its highest level for a eleven months) on a lower Euro, and the Aussie Dollar eased to US93.2c. Commodities prices mixed.

Overnight the NYMEX WTI Crude fell -0.3% to $US93.70, the COMEX Copper closed up 0.9 at 3.228, the COMEX Gold closed up 0.4% at $US1,280.20.

ASX News

BGA – Bega Cheese has raised its annual profit due to higher sales and the proceeds of the sale of its stake in Warrnambool Cheese and Butter.

BRG – Investors have sold down kitchen appliance maker and distributor Breville Group after chief executive Jack Lord stepped down as the company faces challenging business conditions.

CWN – Casinos operator Crown has struck a deal with the Victorian government to pay less tax on VIP gaming, increase its table games and poker machines, and extend its Melbourne casino licence.

IIN – iiNet the internet provider iiNet has told NBNCo to stop dragging its heels on the national broadband rollout as it is impacting its future.

ILU – Iluka Resources says it will continue cutting production until conditions improve and blamed lower prices for a fall in first half net profit by two thirds.

MGR – Mirvac says and improving housing market has helped it to triple its full year profit and the property group expects to grow its earnings further over the next 12 months.

ORG – Origin Energy has increased net profit by 40 per cent and says the looming start-up of its large gas project this year will increase cash flow by $US1 billion.

QAN – Qantas is yet to make a decision about the future of its frequent flyer business, despite reports it has dumped plans for a partial sale.

SUL – Super Retail group the auto, sports and leisure retailer, has forecast modest growth for the first half of FY15 after widespread belt-tightening hurt its sales in May and June.

SGM – Sims Metal Management has raised its earnings by over 77% and expects a better result this year as it continues with its turnaround strategy.

STO – Santos has raised its dividend, despite suffering a -25% slide in 1H15 profit as writedowns in Indonesia offset higher production and sales. Ex-div 20c franked 30 Sept.

SYD – Sydney Airport is well placed to capitalise on traffic growth after more than doubling its first half profit.

TWE – Treasury Wine Estates has suffered a $100 million full year loss after a tough year that included takeover bids, leadership changes and a major restructure.

WPL – Woodside Petroleum says Browse its only major growth project, remains on track for a final investment decision next year, despite potential delays with its joint venture partners.

Market Summary

ASX – to open lower
US & Europe – ease

ANZ 0.2%, NAB -0.3%, NWS -0.3%, WPL -0.6%, OSH 0.1%
AWC -0.7%, BHP -1.2%, RIO -1.7%, NEM -0.8%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.
Reporting this week:

Weekly Market Wrap: Markets At New Highs, Betting On Accommodative Central Banks

August 22nd, 20140

Weekly Market Wrap
Global markets continued higher into this week, with the recent bounce being fuelled by the US markets, as they benefited from the “flight to safety” owing to the geopolitical crises that have engulfed Europe. German investors are accepting negative interest in their two year bonds, in a desperate attempt to ensure that they preserve their capital near-term.

The ASX 200 has had a fantastic bounce from the depths of despair just two weeks ago, as it surged 4% since that time and has risen over 220 points to test the six and a half years highs once more. The local earnings season saw around seventy companies reporting this week and companies who offer increased dividends and/or buy backs being well rewarded. The earnings season continues into next week and there are around 60 companies going Ex-div in the next two weeks.

Commodity prices are being weighed down by the surging US Dollar, which is at its strongest for nearly a year. Gold fell below the $US1,280 level, Iron Ore prices fell to around $92, Copper prices rebounded sharply from their one month lows, while Crude oil prices drifted lower again to trade around $US94.

US stock markets continued higher this week, pushing towards new record highs again, on the back of optimism that central banks will remain accommodative. The Fed meeting minutes confirmed that interest rates will remain low for a “considerable” time, as long as inflation remains under control and given the slack in the labour market. The three benchmark indexes are all trading at record levels again as these markets are benefiting from a flight to safety, given the geopolitical crises in Europe. The S&P500 has rebounded over 4% from its early August lows and is trading near 2000, while the Nasdaq is again trading near thirteen year highs. Home builders have outperformed and are up 3% this week, while Apple hit a new all time high. The VIX has fallen again this week and is down -11% for the year. The US earnings season is almost over with the 97% of the S&P500 companies reporting 75% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg. Investors will look to Jackson Hole, Wyoming (Friday), where leading economists and central bankers are set to meet on the 28 August, Janet Yellen and Mario Draghi will address the meeting.

European stock markets are finishing higher again this week, outperforming last week’s gains. The Stoxx Europe 600 is at six year highs. The index has now risen 4% from its early August low, as geopolitical concerns have eased. Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg. In economic news eurozone manufacturing activity slowed in August, with the PMI reading falling to 52.8 (down from 53.8). UK retail sales grew 0.5% in July. The German market resumed its upward path and is back at its medium term pivot level. Overnight the London markets resumed its five session winning streak, which was its best five session rally since April and recovering from some profit taking after the BoE minutes revealing a number of officials are arguing for an interest rate rise.

Asian stock markets have recorded another solid week, even as they eased for the first time in over a week, on the back of a weaker than expected Chinese manufacturing report. Equity valuations have risen to their highest levels this year on the back of better earnings. The MSCI Asia Pacific Index is holding around six year highs. Traders remain optimistic that the recent Chinese data gives the central bank room to add stimulus near-term, in order to support its 7.5% annual growth target. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings. In economic news HSBC reported its Flash PMI fell to a three month low of 50.3 in August (down from 51.7), below expectations showing momentum is slowing. This news caused the Chinese and Hong Kong markets to snap their winning streak, however the Chinese market is trading at eight month highs and is up around 11% from its May lows, while the Hong Kong market is trading around the 25,000, after hitting its highest level since May 2008 and is up 20% from its March low. The Japanese market held on to recent gains, as exports rose more than expected in July and imports increased.

In today’s article we discuss Taking Profits in the Trade Management Process and discuss the art of taking profits. Knowing when to take profits is a difficult skill to master, so in today’s article we identify some signals that could indicate it is time to book some profits.

The bulls have been firmly in control again this week as the Aussie market is trading at six and a half year highs again. Trader sentiment has been boosted by the solid earnings season as around 70 companies reported (see below for details). The index is trading at the upper level of its rising channel.

XJO Chart

The key pivot level short-term is around 5620 and traders will be looking to the Aussie earnings season for support for this rally into next week, while keeping a close eye on the events overseas. The Aussie dollar has retraced back below US93.0c drifting towards its lowest level for two months. Key levels for the ASX200 index next week are around 5540 and 5680, with 5620 the key near term pivot level.

Some highlights of the earnings season so far include: Amcor raised its full year profit over 25%; Arrium the steel and mining group raised its full year profit 83%; Aurizon’s the rail operator reported a -43% slumped in profit; Ardent Leisure boosted its profit by over a third; AGL Energy raised FY profit 52%; APN News & Media raised half year profit 77%; Coca Cola Amatil has warned after a -16% slump in first half profit; Fortescue Metals’ full year profit grew 56%; Insurance Australia expects to boost premiums by up to 20% as profits grew 59%; InvoCare the funeral business is growing as sales rose by 7.5%;

Mirvac tripled profit on improving housing market; Origin Energy has increased net profit by 40%; NAB’s $1.6 billion cash profit was hit by provisions for its troubled UK business; Newcrest made a $2.2 billion full year net loss on the back of write downs; Oil Search increased first half net profit by 34% and has forecast higher production; Stockland is hoping healthy housing market conditions will underpin its business; Sonic Healthcare hit by confusion about the introduction of a $7 co-payment for GP visits; Toll more than tripled its full year profit; The Reject Shop says its profit fell by a quarter in FY14; Sydney Airport doubled profit and will capitalise on traffic growth; Treasury Wine Estates has suffered a $100 million full year loss; Wesfarmers will give an extra $1.1 billion back to shareholders after raising its full year profit 19%; Woodside Petroleum has increased half-year net profit by 27%.

Remain attuned to the news from overseas, particularly from the Eurozone (Geopolitics/Earnings), China (Stimulus) and the US (Jackson Hole). Monitor the US dollar for a guide to the future direction of commodities and equities prices.

Those investors that are looking for some protection, or to reduce the volatility in their portfolio(s), can buy some insurance or do some stock replacement, in order to either insure that they hold on to their recent gains and still get to participate in this upside move (while being protected to the downside), can still use options as the options volatility remains relatively low and warrants can be used to ramp up your dividend yields.

Contact me at D2MX Advisory on 1300 610 024 and we can help you trade, using a number of strategies that will give you the tools to navigate this market and help you improve your returns on investment.

Michael Hevern
Investment Adviser D2MX Advisory

This report was prepared by Michael Hevern. It represents the views and opinions of the author. It is not intended for use by any third party, without the approval of Michael Hevern. While this report is based on information from sources which are considered reliable, its accuracy and completeness cannot be guaranteed. Any opinions expressed reflect my judgment at this date and are subject to change. Contracting Hevern Pty Ltd is a Corporate Authorised Representative No. 408868 of D2MX Pty Limited ABN 98 113 959 596, AFSL No. 297950 (D2MX), and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd. Opinions, conclusions and other information expressed in this report are not given or endorsed by D2MX, unless otherwise indicated. The information contained in this Report is General Advice only, as the information or advice given does not take into account your particular objectives, financial situation or needs.
Disclaimer: Using leverage to invest can be a two edged sword, as it can magnify your returns when the stock price rises, but will in turn magnify the losses if the trade does not perform as expected.


Taking Profits – Part 2 of Stock Trading Tips – Trade Management

August 22nd, 20140

In today’s article we discuss Taking Profits in the Trade Management process and discuss the art of taking profit as a basic principle of trading. Trading is a business and investors must treat it that way to be successful in the markets and this includes booking profits from time to time.

Knowing When To Take Profits

Knowing when to take profits is a difficult skill to master, so in today’s article we identify some signals that could indicate it is time to take some profits off the table.

The ASX 200 has had a fantastic bounce from the depths of despair just two weeks ago, as it sprung 4% and over 220 points to test the six and a half years highs once more.

The recent bounce has been fuelled by the positive sentient from the US traders, as they benefit from the “flight to safety” owing to the geopolitical crises that have engulfed Europe. German investors are receiving negative interest in their two year bonds. Locally the earnings season has been positive too, with companies who offer increased dividends and/or buy backs being well rewarded.

In times of such euphoria it bodes well to book some profits, but this can be tricky around the dividend season as investors weigh the benefit of receiving dividend income (including franking credits), against capitalising on recent share price increases. There are around 60 companies going Ex-div in the next two weeks.

Warning Signals

It is often said that you should wait for the market to tell you when to take profits. So I have compiled a short list of signals that may be useful for you identifying the warning signs (source Candlestick Patterns – Wikipedia)

Short list of signals that may be useful in identifying potential changing momentum
CHART: Short list of signals that may be useful in identifying potential changing momentum.

Trading These Signals

The Doji indicates balance and is created when there is an agreement on price, between the bulls and the bears and is often a sign of indecision. If the Doji occurs near a significant resistance level, Go Short the next day below the signal day’s low, using the recent high as the STOP.

A Hammer that occurs after an uptrend is called a ‘hanging man’ and is a bearish signal.

A Harami formation indicates loss of momentum and often warns of reversal after a strong trend. Harami means ‘pregnant’ which is quite descriptive. The second candlestick must be contained within the body of the first, though the shadows may protrude slightly.

Dark Cloud Cover consists of a long white candlestick followed by a black candlestick that opens above the high of the Bullish white candlestick and closes well into the body of the white candlestick. It is considered as a bearish reversal signal during an uptrend. The trigger is when the middle of the first candle is breached, with the recent high as the STOP.

The Evening Star pattern is opposite to Morning Star and is a reversal signal at the end of an up-trend. The pattern is more bearish if the second candlestick is down and the trigger is when the middle of the first candle is breached, with the recent high as the STOP.

Engulfing patterns are where the body of the second candlestick ‘engulfs’ the first. They often follow or complete doji, hammer or gravestone patterns and signal reversal in the short-term trend. The engulfing bearish pattern is bearish in an uptrend.

Real-time Examples

Reviewing the ASX20 stocks today (21 August 2014), here are some examples of signals that may be indicating a loss of momentum near-term:

Doji – Macquarie (MQG) yesterday (confirmed today).

Hammer (hanging man) – Scentre Group (SCG).

Harami – Rio Tinto (RIO) yesterday (confirmed today).

Dark Cloud Cover – Amcor (AMC).

Evening Star – Suncorp (SUN).

Engulfing patterns – Insurance Australia (IAG).

Action

Volatility has resurfaced in a big way in the past six weeks, after the ASX200 index basically traded sideways for the first half of the year.

The earnings season has presented some great trading opportunities in recent times like the Suncorp trade we highlighted to our clients last week and there have been a number of excellent income trades as well. However volatility is a two edged sword and investors and traders need to be more attentive to stock price movements in more volatile times.

Investment returns over a long period are not so much dependent on the amount of money you have to invest, but rather they are more a function of trade management and letting compounding work its magic by starting to invest as early as possible. No matter what type of trading or investing you are doing, it is very useful to have considered at least some trade management parameters outlined in recent articles.

When considering the type of trade that best suits your portfolio consider your risk profile. We are consistently monitoring the market and have a number of trading strategies here at D2MX Advisory that can help you with your trading. We produce a Daily Trading Report, with trades like the Suncorp trade, so contact us at 1300 610 024 or advisory@d2mx.com.au.

Michael Hevern
Investment Adviser – D2MX Trading

Also in the series Stock Trading Tips – Trade Management:

Part 1: Control Your Risk

This report was prepared by Michael Hevern. It represents the views and opinions of the author. It is not intended for use by any third party, without the approval of Michael Hevern. While this report is based on information from sources which are considered reliable, its accuracy and completeness cannot be guaranteed. Any opinions expressed reflect my judgment at this date and are subject to change. Contracting Hevern Pty Ltd is a Corporate Authorised Representative No. 408868 of D2MX Pty Limited ABN 98 113 959 596, AFSL No. 297950 (D2MX), and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd. Opinions, conclusions and other information expressed in this report are not given or endorsed by D2MX, unless otherwise indicated. The information contained in this Report is General Advice only, as the information or advice given does not take into account your particular objectives, financial situation or needs.
Disclaimer: Using leverage to invest can be a two edged sword, as it can magnify your returns when the stock price rises, but will in turn magnify the losses if the trade does not perform as expected.


Stock Market Analysis: Stocks Edge Higher Ahead of Jackson Hole Meeting

August 22nd, 20140

* US stock markets continued higher for a fourth session, again pushing to new record highs, on the back of optimism that central banks will remain accommodative.
* European stock markets held on to their gains, rising to their highest levels in a month, as investors speculate on the ECB introducing a QE program by the end of the year.
* Asian stock markets eased for the first time in over a week, on the back of a weaker than expected Chinese manufacturing report.
* Commodities prices fell. Gold prices eased to $US1,277, while crude-oil rose to $US94. Copper held at US3.195c.

The Australian share market pared strong early gains yesterday, to finish flat, as the ASX200 closed flat at 5,638. The index tested new six and a half year highs on the back of index options expiry where we saw volatility on the open. The miners weighed on the index after Chinese data disappointed. Earnings were once again the key driver for the day, with 28 companies reporting (see ASX News below for details).

Local investors are looking at those companies reporting earnings today: Friday: Santos (STO), Iluka (ILU), Sims Metal (SGM), IOOF (IFL), QUBE Holdings (QUB), Federation Centres.

The SPI 200 futures are up another 0.2% to 5,615, giving a positive lead for the ASX market today, as the the US and Europe continue to push higher. The 5650 level will be key for the ASX200 today. The Australian dollar held at US92.8c.

temp
Dr Copper is still trending higher, a positive for equities.

US Markets

US stock markets continued higher for a fourth session, again pushing to new record highs, on the back of optimism that central banks will remain accommodative.

The three benchmark indexes all finished up another 0.3%, again edging higher from the open. The US market is benefiting from a flight to safety, given the geopolitical crises in Europe. The S&P500 has rebounded over 4% from its early August lows and is back at record highs and near the 2000 level. The Nasdaq is trading near thirteen year highs.

Seven of the ten S&P500 sectors finished in the green, the Financials sector led up 1.1% and the Tech sector rose 0.5%, with the rest of the sectors edged up over 0.1%, while the Discretionary and Materials sectors closed -0.1% lower. Home builders have outperformed and are up 3% this week. Traders are comfortable as the Fed says interest rates will remain accommodative for a “considerable” time, as long as inflation remains under control and given the slack in the labour market.

Tonight we see a report on US July existing home sales, US July leading index, US August Philadelphia Federal business outlook, but investors will look to Jackson Hole, Wyoming (Friday), where leading economists and central bankers are set to meet on the 28 August, Janet Yellen and Mario Draghi will address the meeting tonight.  The VIX eased -0.2% to 11.7 (down -11% for the year).

The US earnings season continues with 486 S&P500 stocks having reported and overnight eight reported including Salesforce, EBay, HP and Bank of America all beating estimates. Of the S&P500 companies that have reported 75% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed up 0.4% at 16,979 the S&P500 up 0.3% at 1,986 and the NASDAQ closed down -0.1% at 4,526, while the 10-year Treasuries eased to 2.41%, off twelve month lows.

European Markets

European stock markets held on to their gains, rising to their highest levels in a month, as investors speculate on the ECB introducing a QE program by the end of the year.

The Stoxx Europe 600 closed up 0.7%. The index has now risen 4% from its early August low, as geopolitical concerns have eased. Trading volumes were down -20% below the monthly average, as traders chose caution ahead of the Jackson Hole meeting.

In economic news eurozone manufacturing activity slowed in August, with the PMI reading falling to 52.8 (down from 53.8). UK retail sales grew 0.5% in July.

The German market resumed its upward path overnight. Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg. The London markets resumed its five session winning streak, which was its best five session rally since April and recovering from some profit taking after the BoE minutes revealing a number of officials are arguing for an interest rate rise.

For the session the German DAX 30 closed up 0.9% at 9,401, the UK the FTSE 100 closed up 0.3% at 6,777, the French CAC 40 closed up 1.2% at 4,292, while the Spanish market closed up 1.3% at 10,556.

Asian Markets

Asian stock markets eased for the first time in over a week, on the back of a weaker than expected Chinese manufacturing report.

The MSCI Asia Pacific Index closed -0.6% lower, with two shares declining for every gainer, as miners and energy stocks weighed. The index is still at six year highs. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings.

In economic news HSBC reported its Flash PMI fell to a three month low of 50.3 in August (down from 51.7), below expectations showing momentum is slowing, but it is still above the 50 reading indicating expansion. This news comes on the back of recent data the showed a slump in credit expansion and falling growth in investment spending in July.

The Chinese and Hong Kong market snapped their winning streak, after the Flash PMI disappointed. The falls were led by the Property and Energy sectors, with coal miners being sold down. The Chinese market backed off is eight month highs and is up around 11% from its May lows.

The Hong Kong market fell below 25,000, after hitting its highest level since May 2008 and is up 20% from its March low. The Japanese market held on to recent gains, as exports rose more than expected in July and imports increased.

For the session the Shenzhen Composite down -0.4% to 2,354, the Hong Kong Hang Seng closed down -0.7% at 24,994, and the Japanese Nikkei closed up 0.9% at 15,586, while the South Korean KOSPI closed down -1.4% at 2,044.

Commodities

The Dollar Index edged higher to 82.35 (holding at its highest level for a eleven months) on a lower Euro, and the Aussie Dollar held at US92.8c. Commodities prices fall.

Overnight the NYMEX WTI Crude rose to $US93.90, the COMEX Copper closed flat at 3.195, the COMEX Gold closed down -1.4% at $US1,277.30.

ASX News

AMP – AMP CEO Craig Meller says the wealth manager’s turnaround remains on track despite a fall in its first half net profit of -3% on falling revenue.

AIO – Asciano the rail freight and ports operator says full year profit slumped -24% after a year of restructuring that it says will drive future earnings growth.

BRG – Investors have sold down kitchen appliance maker and distributor Breville Group after chief executive Jack Lord stepped down as the company faces challenging business conditions.

IIN – iiNet the internet provider iiNet has told NBNCo to stop dragging its heels on the national broadband rollout as it is impacting its future.

MGR – Mirvac says and improving housing market has helped it to triple its full year profit and the property group expects to grow its earnings further over the next 12 months.

ORG – Origin Energy has increased net profit by 40 per cent and says the looming start-up of its large gas project this year will increase cash flow by $US1 billion.

QAN – Qantas is yet to make a decision about the future of its frequent flyer business, despite reports it has dumped plans for a partial sale.

SUL – Super Retail group the auto, sports and leisure retailer, has forecast modest growth for the first half of FY15 after widespread belt-tightening hurt its sales in May and June.

SYD – Sydney Airport is well placed to capitalise on traffic growth after more than doubling its first half profit.

TTS – Tatts the gambling company has made a solid start to the new financial year, but its profit was dragged down by a $42.6 million health benefit levy charged to its discontinued poker machine business.

TWE – Treasury Wine Estates has suffered a $100 million full year loss after a tough year that included takeover bids, leadership changes and a major restructure.

VRL – Village Roadshow the theme park operator says its profit has fallen despite a bumper first season at its new Sydney water park.

WPL – Woodside Petroleum says Browse its only major growth project, remains on track for a final investment decision next year, despite potential delays with its joint venture partners.

Market Summary

ASX – to open higher
US&Europe – continue higher

ANZ 0.1%, NAB 0.6%, NWS 0.6%, WPL 1.3%, OSH 0.1%
AWC 4.4%, BHP -0.7%, RIO -0.5%, NEM -0.5%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.
Reporting this week:

Stock Market Analysis: Stocks Hold On To Gains, Betting On Central Bankers

August 21st, 20140

* US stock markets continued higher for a third session, again pushing towards new record highs, on the back of optimism over central bank accommodation.
* European stock markets held on to their 1.8% gain in the past two sessions eclipsing all of the gains from last week.
* Asian stock markets held on to recent gains, with equity valuations have risen to their highest levels this year on the back of better earnings.
* Commodities prices rose. Gold prices eased to $US1,295, while crude-oil jumped to above $US96. Copper jumped to US3.198c.

The Australian share market closed higher for a sixth session, as the ASX200 was up another 0.2% at 5,634. The index would have finished at new six and a half year highs, had it not been for BHP’s disappointment on the buy back issue, which cost the index nearly 20 points. Earnings were once again the key driver for the day (see ASX News below for details). The RBA Governor Stevens stuck to the script saying the Aussie dollar is uncomfortably high and interest rates are on hold. In economic news today: August consumer confidence figures.

AMP has just announced that its profit has fallen -3% on falling revenue. Note it is index options expiry today, so expect some volatility on the open.

Local investors are looking at those companies reporting earnings today: Asciano (AIO), CFS Retail Preoprty Trust(CFX), Super Retail Group (SUL), Transpacific (TPI), Origin Energy (ORG), AMP, Tatts Group, Mirvac Group, iiNet (IIN), Treasury Wine (TWE), Sydney Airport (SYD), Fortescue Metals (FMG), ASX Ltd report earnings.

The SPI 200 futures are up another 0.3% to 5,625, giving a subdued lead for the ASX market today, as the the US and Europe continue to push higher. The 5640 level will be key for the ASX200 today. The Australian dollar eased at US92.8c.

temp
The Hong Kong Market is trading at its highest level since 2008.

US Markets

US stock markets continued higher for a third session, again pushing towards new record highs, on the back of optimism over central bank accommodation. The Fed meeting minutes confirmed that interest rates will remain accommodative for a “considerable” time, as long as inflation remains under control and given the slack in the labour market.

The three benchmark indexes all finished up around 0.3%, drifting higher from the open. The US market is benefiting from a flight to safety, given the geopolitical crises in Europe. The S&P500 has rebounded 4% from its early August lows and is back at record highs. The Nasdaq backed off its new thirteen year highs.

Eight of the ten S&P500 sectors finished in the green, the Industrials sector led up 1.0%, with the Utilities, Financials and Discretionary sectors up over 0.3%, while the Staples sector closed -0.1% lower. Apple hit a new all time high.

Tonight we see a report on US June business inventories, but investors will look to Jackson Hole, Wyoming (Friday), where leading economists and central bankers are set to meet on the 28 August, Janet Yellen and Mario Draghi will address the meeting. Traders continue to speculate that interest rates will remain low for longer and that the Iraqi and Ukrainian crises are easing.  The VIX eased -3% to 11.8(down -11% for the year).

The US earnings season continues with seven S&P500 stocks to reporting. HP and Target reported better than expected. Of the S&P500 companies that have reported 76% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed up 0.4% at 16,979 the S&P500 up 0.3% at 1,986 and the NASDAQ closed down -0.1% at 4,526, while the 10-year Treasuries rose to 2.43%, off twelve month lows.

European Markets

European stock markets held on to their 1.8% gain in the past two sessions eclipsing all of the gains from last week. The Stoxx Europe 600 closed flat., paring earlier losses of -0.4%. The index is still around -5% from its mid-June peak and is now up 2.3% for the year. The mining sector recovered as BHP recovered.

The German market eased overnight, on the back of better earnings from Heineken, but Carslberg disappointed. Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg. The London markets snapped a five session winning streak, its best five session rally since April.

Tonight we see the reports on European Q2 GDP, Germany Q2 preliminary GDP report.

For the session the German DAX 30 closed down -0.2% at 9,314, the UK the FTSE 100 closed down -0.4% at 6,755, the French CAC 40 closed down -0.3% at 4,240, while the Spanish market closed up 0.3% at 10,420.

Asian Markets

Asian stock markets held on to recent gains, with equity valuations have risen to their highest levels this year on the back of better earnings.

The MSCI Asia Pacific Index closed eased -0.1%, holding around six year highs. Traders remain optimistic that the recent Chinese data gives the central bank room to add stimulus near-term. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings.

The Chinese and Hong Kong market eased. The Chinese market is trading at eight month highs and is up over 11% from its May lows. The Hong Kong market held above 25,000, holding at its highest level since May 2008 and is up 20% from its March low. The Japanese market held on to recent gains, as exports rose more than expected in July and imports increased.

For the session the Shenzhen Composite down -0.4% to 2,366, the Hong Kong Hang Seng closed up 0.2% at 25,159, and the Japanese Nikkei closed up 0.1% at 15,454, while the South Korean KOSPI closed up 0.1% at 2,072.

Commodities

The Dollar Index edged higher to 82.25 (holding at its highest level for a eleven months) on a lower Euro, and the Aussie Dollar eased to US92.8c. Commodities prices rise.

Overnight the NYMEX WTI Crude delivery jumped 1.7% to $US96.10, the COMEX Copper closed jumped 2.5% to 3.198, the COMEX Gold closed down -0.1% at $US1,295.20.

ASX News

AGK – AGL Energy has lifted its full year profit 52 per cent and announced a $1.2 billion capital raising to help fund its takeover of NSW power provider Macquarie Generation.

APN – APN News & Media has lifted its half year profit 77 per cent to $22.6 million, as its performance is boosted by radio acquisitions.

CCL – Coca Cola Amatil has warned that post-budget weak consumer sentiment is set to mean tough trading conditions for the rest of the year after a -16% slump in first half profit.

FMG – Fortescue Metals’ full year profit has grown by 56% to $US2.7 billion and the iron ore miner expects to hit its expansion target in the year ahead.

TRS – The Reject Shop the discount retailer, has had a bumpy start to the fiscal year after its profit fell by a quarter in FY14.

TOL- Toll the transport business has more than tripled its full year profit and says it is ontrack to lift its earnings as it pushes ahead with a restructure.

SXL – Southern Cross Austereo has suffered a $296 million loss and announced the departure of its chairman Max Moore-Wilton.

WES – Wesfarmers will give an extra $1.1 billion back to shareholders after raising its full year profit 19%.

WPL – Woodside Petroleum has increased half-year net profit by 27% and says it is confident about gas demand despite a large number of new projects coming online.

Market Summary

ASX – to open higher
US&UK/Europe – continue higher

ANZ 1.2%, NAB 1.0%, NWS 2.0%, WPL 0.7%, OSH 1.7%
AWC -2.2%, BHP 1.4%, RIO 1.0%, NEM -0.4%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.
Reporting this week:

Friday: Santos (STO), Iluka (ILU), Sims Metal (SGM), IOOF (IFL), QUBE Holdings (QUB), Federation Centres report earnings. EU August consumer confidence, US July existing home sales, US July leading index, US August Philadelphia Federal business outlook.

Stock Market Analysis: Bulls Push Markets to New Records

August 20th, 20140

* US stock markets continued higher, pushing to new record highs, on the back of optimism over central bank accommodation, M&A activity and easing geopolitical risks.
* European stock markets continue higher for a second session, as geopolitical concerns eased.
* Asian stock markets held on to recent gains after rising every session for the past week, as investors digested company earnings reports.
* Commodities prices fell. Gold prices eased to $US1,296, while crude-oil retraced to below $US95. Copper down to US3.115c.

The Australian share market closed higher for a fifth session, as the ASX200 was up another 0.7% at 5,632. In economic news today: RBA Governor Stevens will address the House of Reps standing committee on economics, Australian Q2 wage cost index, Westpac August consumer confidence.

Local investors are looking at those companies reporting earnings today: Wesfarmers, Woodside Petroleum, Ausenco, APN News, AGL, Challenger Financial, Seek, Fletcher Building, Coca-Cola, Brambles report earnings.

The SPI 200 futures are down -0.1% to 5,575, giving a subdued lead for the ASX market today, as the the US and Europe continue to push higher. The 5630 level will be key for the ASX200 today. The Australian dollar held at US93.2c.

US Markets

US stock markets continued higher, pushing towards new record highs, on the back of optimism over central bank accommodation, M&A activity and easing geopolitical risks.  The US market is benefiting from a flight to safety, given the geopolitical crises in Europe.

The three benchmark indexes all finished up around 0.5%, rising from the open.  All ten S&P500 sectors finished in the green, the Utilities sector led up 1.1%, closely followed by Energy, Discretionary and Healthcare sectors all up around 0.8%.  the Materials sector rose 0.3% and BHP dropped -4% after reporting, but failing to announce a buy back.  The S&P Homebuilders index surged another 2.6% (building on yesterday’s 2.1% gains).

The S&P500 has rebounded 4% from its early August lows and is back at record highs and closing above the 1,965 pivot level for a second session. The Nasdaq is at new thirteen year highs. Traders continue to speculate that interest rates will remain low for longer and that the Iraqi and Ukrainian crises are easing.  The VIX eased -1% to 12.2(down -10% for the year).

In economic news US inflation rose at its slowest pace in five month in July and is holding below the Fed’s target rate. Housing starts jumped in July to their highest level in eight months, confirming recent data that showed consumer confidence rose to a seven month high in August.

Tonight there are US July advance retail sales, US FOMC meeting minutes. Investors will be looking to Jackson Hole, Wyoming, where leading economists and central bankers are set to meet on the 28 August, Janet Yellen and Mario Draghi will address the meeting.

The US earnings season continues with twenty S&P500 stocks to report this week. Retail stocks rose as Home Depot and TJX reported better. Of the S&P500 companies that have reported 76% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed up 0.5% at 16,920, the S&P500 up 0.5% at 1,982 and the NASDAQ closed up 0.4% at 4,528, while the 10-year Treasuries rose to 2.40%, off twelve month lows.

European Markets

European stock markets continue higher for a second session, as geopolitical concerns eased. The Stoxx Europe 600 Index up another 0.6%, up 1.8% in two sessions eclipsing all of the gains from last week. The index is still around -5% from its mid-June peak and is now up 2.4% for the year. The mining sector was the worst performer as BHP weighed on the sector.

The German market continued higher overnight, on the back of better earnings from Maersk (the shipping container shipper), Imperial Tobacco and John wood (the oil & gas engineer). Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg. The London markets finished higher for a fifth session, for its best five session rally since April.

Tonight we see the reports on EU June industrial production, UK July jobless claims.

For the session the German DAX 30 closed up 0.9% at 9,334, the UK the FTSE 100 closed up 0.6% at 6,779, the French CAC 40 closed up 0.6% at 4,254, while the Spanish market closed up 0.3% at 10,386.

Asian Markets

Asian stock markets held on to recent gains after rising every session for the past week, as investors digested company earnings reports.

The MSCI Asia Pacific Index closed up 0.6%, as all ten industry groups closed higher. The Financials, Healthcare and Utilities sectors led the gains. Traders remain optimistic that the recent Chinese data gives the central bank room to add stimulus near-term. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings.

The Chinese market closed higher again yesterday, as media stocks rallied and casino operators with exposure to Macau rose. The market is trading at eight month highs and is up over 12% from its May lows. The Hong Kong market rose to its highest level since May 2008 and is up 20% from its March low.

The Japanese market built on to recent gains, as the yen fell again and as investors focused on corporate earnings.

For the session the Shenzhen Composite up 0.1% to 2,374, the Hong Kong Hang Seng closed up 0.7% at 25,122, and the Japanese Nikkei closed up 0.8% at 15,449, while the South Korean KOSPI closed up 0.9% at 2,071.

Commodities

The Dollar Index edged higher to 81.57 (holding around its highest level for a year) on a lower Euro, and the Aussie Dollar held at US93.2c. Commodities prices fell.

Overnight the NYMEX WTI Crude delivery down -1.9% to $US94.60, the COMEX Copper closed down -0.6% to 3.115, the COMEX Gold closed down -0.2% at $US1,296.20.

ASX News

AAD – Ardent Leisure says Laser tag, tenpin bowling and indoor rock climbing venues in the United States have helped boost its profit by more than a third.

ANN – Ansell the protective gloves and condom maker, expects acquisitions and changes to its business to start showing benefits this financial year.

AMC – Amcor the packaging business has lifted its full year profit over 25% and expects growth in emerging markets to help drive its earnings higher over the next year.

ARI – Arrium the steel and mining group is targeting further earnings growth after lifting its full year profit 83%.

AZJ – Aurizon’s the rail operator, has reported a -43% slumped in profit and says a looming strike action poses another threat to earnings.

CBA – CommBank has launched its highly anticipated $2 billion PERLS VII hybrid securities offer at the tightest margin for a Tier I offer since the global financial crisis.

CKF – Collins Foods says the appetite for fried chicken grew in the past three months, lifting KFC’s sales beyond expectations.

DSH – Dick Smith the electronics retailer says it is well placed for profit growth after making a $19.8 million net profit in its maiden result as a listed company.

HIL – Hills plans to buy more security and healthcare technology businesses after completing a significant makeover.

IAG – Insurance Australia Group (IAG) said it expects to boost premiums by up to 20 per cent this year as it lifted full year net profit by 59% to $1.23 billion.

IVC – InvoCare says there has been an increase in funerals during July and the first two weeks of August, with sales rising by 7.5%, continuing an upswing that began in May.

NCM – Newcrest Mining Australia’s largest gold miner has made a $2.2 billion full year net loss on the back of previously flagged write downs.

OSH – Oil Search the PNG focused Oil producer increased first half net profit by 34% and has forecast higher production and sales for the remainder of the year.

QBE – QBE the insurance giant QBE will sell off or float businesses in three continents, including Australia, as it works to get back on track after its profit fell -18% 1H14.

SHL – Sonic Healthcare says confusion about the introduction of a $7 co-payment for GP visits appears to be putting some people off going to the doctor and others from having pathology tests.

TGR – Tassal the salmon farmer Tassal has overcome drops in fish supplies, caused by hot weather, to post a 23% net profit rise.

TOL- Toll the transport business has more than tripled its full year profit and says it is ontrack to lift its earnings as it pushes ahead with a restructure.

Market Summary

ASX – to open flat
US&UK/Europe – continue higher

ANZ 0.7%, NAB -0.9%, NWS -0.5%, WPL 0.1%, OSH -0.5%
AWC 0.7%, BHP -3.8%, RIO -1.1%, NEM -0.1%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

Stock Market Analysis: Stocks Rise on Earnings & Easing Geopolitics

August 19th, 20140

* US stock markets continued higher, after a solid week, on the back of M&A and easing geopolitical risks.
* European stock markets continue higher, building on the best weekly gain in over a month, as Ukrainian and Russians met for talks and the ceasefire in the Gaza Strip was extended as negotiations progressed.
* Asian stock markets continued to rise for a fourth session, as investors digested company earnings reports again.
* Commodities prices fell. Gold prices eased to $US1,299, while crude-oil retraced to below $US97. Copper rose to US3.135c, the iron ore price is sitting around $US94.00.

The Australian share market closed higher for a third session, as the ASX200 was up 0.4% at 5,587. Investors focused on the positive outlooks for future growth and set aside the disappointing trading update from the National Bank and impairment charges hitting the profits of Ansell, Newcrest Mining and Aurizon Holdings. The Materials sector rose 0.3%, while the Financials sector gained 0.2%.

Local investors are looking at those companies reporting earnings today: BHP Billiton, QBE Insurance, Insurance Australia (IAG), Oil Search (OSH), Sonic Healthcare (SHL), Amcor (AMC), GWA Group, Toll Holdings (TOL).

In economic data today: RBA minutes, ANZ/Morgans consumer confidence rating, July imports of goods.

The SPI 200 futures are up 0.4% to 5,529, giving another positive lead for the ASX market today, as the the US and Europe surged. The 5600 level will be key for the ASX200 today. The Australian dollar held at US93.2c.

temp
The US S&P500 market pushes above key pivot near-term.

US Markets

US stock markets continued higher, after a solid week, on the back of M&A and easing geopolitical risks. The three benchmark indexes all finished up around 1%, rising from the open. Eight of the ten S&P500 sectors finished in the green, Industirals outperformed up 1.5%, the Financials, Tech and Materials sectors all rose 1.0%, while the Utilities sector fell over -0.3%.

Traders continue to speculate that interest rates will remain low for longer and that the Iraqi and Ukrainian crises are easing. The S&P500 rose 1.9% last week and has closed above the 1,965 pivot level. The VIX eased rose 6% to 12.3.

In economic news consumer confidence rose to a seven month high in August, fuelling the S&P Homebuilders index surge of 2.1%. Investors will be looking to Jackson Hole, Wyoming, where leading economists and central bankers are set to meet on the 28 August, Janet Yellen and Mario Draghi will address the meeting.  Tonight there are US July building permits, US July housing starts, US July CPI.

The US earnings season continues with twenty S&P500 stocks to report this week. In M&A Family Dollar is in the midst of a bidding war. Of the S&P500 companies that have reported 76% have beaten on profits, 65% beat on revenues, while 66% beat sales forecast, according to Bloomberg.

For the session Dow Jones closed up 0.9% at 16,839, the S&P500 up 0.9% at 1,972 and the NASDAQ closed up 1.0% at 4,508, while the 10-year Treasuries rose to 2.39%, off twelve month lows.

European Markets

European stock markets continue higher, building on the best weekly gain in over a month, as Ukrainian and Russians met for talks and the ceasefire in the Gaza Strip was extended as negotiations progressed.

The Stoxx Europe 600 Index surged 1.2%, nearly eclipsing the 1.5% gains from last week. The index is still around -5.7% from its mid-June peak and has risen only 1.8% for the year. Trading volumes jumped to 35% above the monthly average as all industry groups finished in the green.  Tonight we see the report on EU June current account, UK July CPI, UK July retail price index.

The German market rebounded overnight, on the back of the Auto and Banking sectors thanks to better earnings from Renault and Commerzbank. Earnings of the Stoxx Europe 600 that have reported 57% beat on profits and 51% beat on sales, according Bloomberg. The London markets finished higher for a fourth session as the FTSE has rebounded 1.9% last week recovering from a four month low and recording its best weekly rise in three months.

For the session the German DAX 30 closed up 1.7% at 9,245, the UK the FTSE 100 closed up 0.8% at 6,741, the French CAC 40 closed up 1.4% at 4,231, while the Spanish market closed up 1.3% at 10,353.

Asian Markets

Asian stock markets held on to recent gains after rising every session for the past week, as investors digested company earnings reports. The MSCI Asia Pacific Index closed flat, supported by the Healthcare and Telecoms sectors, as six of the ten industry sectors finished in the green. The index rose 2.7% last week, the most since March.

The Chinese market is up over 11% from its may lows, closing higher again yesterday, despite news that China’s foreign direct investment plunged -17% in July from last year (well below the 0.8% rise expected), also Chinese new home prices fell in July in all of the major cities monitored, a reflection that the government’s tighter mortgage lending is having an effect. In earnings of the companies that have reported on the MSCI Asia Pacific Index since the start of July, 54% have beaten on earnings.

The Japanese market held on to recent gains, as the yen fell again and as investors focused on corporate earnings as Nintendo and Lenovo reported better. The Hong Kong market held just below 25,000, after last week hitting its highest level since May 2008.

For the session the Shenzhen Composite up 0.6% to 2,375, the Hong Kong Hang Seng closed up 0.1% at 24,955, and the Japanese Nikkei closed up 0.1% at 15,323, while the South Korean KOSPI closed down -0.5% at 2,053.

Commodities

The Dollar Index edged higher to 81.57 (holding around its highest level for a year) on a lower Euro, and the Aussie Dollar held at US93.2c. Commodities prices fell.

Overnight the NYMEX WTI Crude delivery down -0.9% to $US96.40, the COMEX Copper closed up 0.6% to 3.135, the COMEX Gold closed down -0.5% at $US1,299.30.

ASX News

AAD – Ardent Leisure says Laser tag, tenpin bowling and indoor rock climbing venues in the United States have helped boost its profit by more than a third.

ANN – Ansell the protective gloves and condom maker, expects acquisitions and changes to its business to start showing benefits this financial year.

AZJ – Aurizon’s the rail operator, has reported a -43% slumped in profit and says a looming strike action poses another threat to earnings.

CBA – CommBank has launched its highly anticipated $2 billion PERLS VII hybrid securities offer at the tightest margin for a Tier I offer since the global financial crisis.

CKF – Collins Foods says the appetite for fried chicken grew in the past three months, lifting KFC’s sales beyond expectations.

NAB – National Australia Bank is facing another STG245 million hit to its books in relation to its troubled UK business, while cash profit grew to $1.6 billion in the June quarter.
NCM – Newcrest Mining Australia’s largest gold miner has made a $2.2 billion full year net loss on the back of previously flagged write downs.

RIO – Rio Tinto is considering the future of its key stake in a company that has lost the right to mine in Bougainville.

SGP – Stockland the property developer is hoping healthy housing market conditions will underpin its business next year, with Sydney and Queensland leading the charge.

Market Summary

ASX – to open higher
US&UK/Europe – continue higher

ANZ 0.4%, NAB -1.6%, NWS 0.2%, WPL 1.3%, OSH 0.1%
AWC 0.1%, BHP 0.4%, RIO 0.5%, NEM -0.3%

By Michael Hevern D2MX Investment Advisor For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.