Stock Market Analysis
US Markets Closed, Europe Markets Flat
U.S. markets were closed overnight for the Labor Day Holiday, which will mean that our markets will have low trading volumes. The ASX is set to trade flat today as the RBA is expected to leave rates on hold, but they may foretell at least one rate higher by Christmas.
The SPI Futures is just below the key resistance level of 4600 the ASX is set to open flat again as the SPI Futures closed flat (or -1 pts) at 4,591. The key levels for our index today are 4650 and 4550. M&A activity continues to drive specific stocks. The earnings season comes to an end (see below). Expect to trading volumes to be low again today.
US Markets
U.S. markets were closed overnight. The Dow was closed at 10,448, while in the broader market the S&P 500 index was closed at 1,090 and the tech-heavy Nasdaq was closed at 2,234.
European Markets
European stock markets closed marginally higher overnight, though trading volumes were thin. The European Central Bank (ECB) President Jean-Claude Trichet said that European growth is lagging behind the U.S. and has underscored the need for structural reforms. German Banks are trying to digest realisation that the introduction of a leverage ratio as a regulatory norm may require German banks to raise EUR36 billion in extra capital. Utilities stocks were among the top performers after a broker upgrade and a German decision to extend the life of nuclear-power stations, prompted a 2 percent rise in electricity stocks. The German nuclear power plant operators will have to pay around EUR30 billion for being allowed to run their reactors longer. In France the water and waste-management firm Veolia Environmental climbed 3.3% after an upgrade. In London the FTSE 100 index closed up marginally 0.2% (or 11 points) at 5,439, the German DAX up 0.3% (or 20 points) at 6,155, while in France the CAC was up 0.3% (or 11 points) at 3,684.
Asian Markets
Asian shares traded higher. China’s shares ended at their highest level in almost 4-months, as the market broke out of its current trading range. The gains were led by steel makers and financial firms after better-than-expected U.S. jobs data helped ease concerns about the global economic recovery. China and the U.S. are due to release their August trade data later this week, which will impact investor sentiment. Japanese stocks rose sharply yesterday, but there is still investor caution on the view that the BoJ may be tested in its resolved to ease monetary policy in order to weaken the yen. Japanese stocks made broad gains led by the exporters, such as Advantest, TDK, Toshiba and Mazda Motor all up over 3 percent. There were rumours that a Nikkei report had drawn up for emergency cost reduction measures to soften the impact of yen strength, and that they expected the steps to boost fiscal 2010 earnings. In China the SSE Composite closed up 1.5% (or 41 points) at 2,696, while in Hong Kong the Hang Seng Index was up 1.8% (or 384 points) at 21,356 and in Japan the Nikkei 225 Index was up 2.1% (or 187.19 points) at 9,301.
Commodities
The Dollar Index was steady at 82.07 on higher Euro, while the Australian Dollar last traded higher at 91.47. Commodities were generally steady.
Oil prices held still above $US74. The benchmark crude NYMEX for September delivery was down -0.7% (or $US-0.52) to settle at $US74.08. Copper prices rose, Copper for September delivery was up 0.5% (or 1.9 cents) at $US3.5120. Gold prices are around 2-month highs, are around key $US1,250 level, with December gold was flat at $US1,249.20.
Key News International Drivers Today
US – U.S. Labor Day holiday. Companies continue to report earnings this week.
EU – Finance and Energy stocks in focus.
CHINA – China demand for copper continues. Government stands firm on access to credit.
JAPAN – Rebounded off 16-month lows.
Markets Overview
US Markets Closed, Europe Markets Flat
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Market |
Movement |
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The Dow Jones Industrial Average |
Closed at 10,448 |
|
The S&P 500 |
Closed at 1,090 |
|
The Nasdaq |
Closed at 2,234 |
|
|
|
|
The FTSE 100 |
Up Marginally 0.2% (or 11 pts) at 5,439 |
|
The German DAX |
Up 0.3% (or 20 pts) at 6,155 |
|
The Fench CAC |
Up 0.3% (or 11 pts) at 3,684 |
|
|
|
|
The Dollar Index |
Down Marginally -0.04% at 82.07 |
|
The Australian Dollar |
Last traded at 91.47 |
|
The Commodities Index |
Down Marginally 0.00% at *272.77 |
|
|
|
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Crude Oil Futures |
Down -0.7% at $74.08 |
|
Gold Futures |
Flat at $1,249.20 |
|
Copper Futures |
Up 0.53% at $3.5120 |
|
SPI Futures |
Flat (or -1 pts) at 4,591 |
|
|
|
|
|
|
|
Market |
Movement |
|
SSE Composite (China) |
Up 1.5% at 2,696 |
|
Hang Seng Index (Hong Kong) |
Up 1.8% at 21,356 |
|
Nikkei 225 Index (Japan) |
Up 2.1% at 9,301 |
SPI: Just Below key Level 4600 – SPI flat at 4,591…
ASX News Today
The SPI Futures is just below the key resistance level of 4600 the ASX is set to open flat again as the SPI Futures closed flat (or -1 pts) at 4,591. The key levels for our index today are 4650 and 4550. M&A activity continues to drive specific stocks. The earnings season comes to an end (see below). Expect to trading volumes to be low again today.
AMC- Will investment $400 million for an upgraded paper recycling facility in Sydney.
AVX- Avexa is hiring a corporate advisory firm to undertake a review of the biotech firm.
AND- Andean Resources the Sydney-based gold explorer, have jumped after it emerged from a trading halt following a takeover bid from Goldcorp Inc. Shares surged 9.4%.
AVE- Aevum reminded shareholders to reject a the “inadequate” takeover offer from Stockland.
BHP- The Zambian government has reversed a decision to cancel BHP’s (JV) Mumbwa prospecting license, which it canceled on Wednesday.
BXB- Brambles says CHEP Automotive has secured the tender to provide pooling services to GM Europe until July 2016.
GFF- Goodman Fielder says the NZ earthquake effects on their operations are minor.
GLC- Gloucester Coal raised $7 million from a retail entitlement offer, bringing funds garnered to $441 million.
IAG- IAG expects claims from the NZ earthquake to be “entirely covered” by reinsurance arrangements and reaffirmed earnings guidance for this year.
JET- Jetset Travelworld the travel agency, says shareholders have voted overwhelmingly in favour of a merger with Stella Travel Services.
LYC- Lynas Corp the rare earths mine developer announced a substantial increase in the mineral resource estimate for its Mount Weld project near Laverton in WA.
MQG- Macquarie Group has forecast that 1H10 profit will be down by 25 percent because conditions in the markets have been weak.Shares dropped 4.7%.
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MSL- The MAC Services Group mining services provider will build a workers accommodation village in Narrabri to service the area’s growing coal industry.
NGF- Norton Gold Fields the gold miner, has completed a litigation settlement with Lehman Brothers related to its hedging arrangements. Shares surged 20%.
NZO- NZ Oil & Gas will buy back 8.5 million of its ordinary shares to boost its share price, as its shares are “significantly below fair value”.
STU- Stuart Petroleum Ltd says the company’s first oil had flowed from its Worrior 7 well in South Australia’s Cooper Basin. Shares surged 18%.
SUN- Suncorp-Metway says it will be “some time” before an accurate assessment can be made.
WHS- The Warehouse says the NZ earthquake effects on their operations are minor.
WOW- Woolworths Ltd will offload $900 million of its retail sites from the company’s property portfolio, though no timetable has been formalised.
Economic Reports:
RBA Interest Rate Decision
August Home Loans Report
Australia should find out today who will form the next minority government.
Companies:
MML – Medusa Mining Ltd releases full year results.
Xstrata Coal Ltd CEO Peter Freyberg speaks at a business lunch in Sydney.
Shell Development (Australia) Pty Ltd executive vice president Ann Pickard speaks in Perth.
Dividends
HIL – Hills Industries Ltd Full year 2010 Ex-dividend date
Market Summary
ASX – to open Higher
US & UK/Europe – higher
By Michael Hevern
Head of Research
Tags: Asian Markets, ASX, ASX News, Business News, European Markets, gold, Nasdaq, Nikkei, S&P500, spi, Stock Market Analysis, stockmarket, trading, US Market wrap
