* US stock markets ended the week lower again, with their worst Thanksgiving week performance since the middle of last century.
* European stock markets snapped thier six-session losing streak, session, as eurozone leaders cannot establish an agreement on how to resolve the European debt crisis.
* Asian markets closed mostly lower Friday. The selling was again broad with energy and banking stocks leading the declines, as ongoing European debt concerns drove sentiment.
* Commodities prices traded lower, as Gold prices lower to $US1,692 and while crude-oil closed around $US97.
The SPI Futures is trading around the key pivot level of 4250, ended down -0.6% (or -25 points) at 4,039. The key levels for our index today are 3950 to 4120.
On Friday the Australian stock market has finished the week’s dismal performance in the red for a sixth day, and finished below the psychological 4000 level, destroying approximately $75 billion off the value of the overall market. As we highlighted a couple of weeks ago the Asian markets are bearing the brunt of the selling over the eurozone debt crisis, but now we are seeing the major European markets and the United States joining in on the selling spree, as the eurozone financial system appears to be grinding to a halt. In Japan the core consumer prices fell for the first time in four months, indicating that the Japanese economy is falling into a deflationary cycle, due to persistently weak domestic demand.
Locally, the housing market is in the news this week, as we approach the so call “Super Saturday”, which is one of the busiest weekends of the year for home auctions. However economist Michael West has put a damper on proceedings, as he is bearish on the Australian housing market and predicts that local house prices could fall by as much as 25 percent based on the latest global house-price indicators in The Economist magazine. The latest global house price indicators are now falling in eight of the sixteen countries surveyed by The Economist (versus five in 2010). Shares in the All Ordinaries (XAO) generally eased again today, closing down -1.4% at 4058, as the S&P/ASX 200 (XJO) closed down -1.5% at 3984.
Aussie traders are expected to trade cautiously today and may be look to pick up some “bargains”, after the mixed leads from the US and European markets, as traders fears over the eurozone debt crisis continued to be the primary focus, after a disappointing comments from Germany about a proposed Euro bond issue, and in the US the “super committee” charged with reducing the US deficit is deadlocked. We continue to have a busy week for AGMs and production reports, see below for details.
See below for ASX listed companies in the news today.
Economics News Today
* Nov Australian PSI
* Nov TD Securities Monthly Inflation Gauge
* Nov ANZ Job Ads
* Q3 Business Indicators
* Nov VFACTS vehicle sales.
Asian stock markets closed mostly lower Friday. The selling was again broad with energy and banking stocks leading the declines, as ongoing European debt concerns drove sentiment.
For the week in Hong Kong the Hang Seng was down -4.6%, in Japan markets were down -2.6%,in Korea markets were down -3.3%, while in China the Shanghai Composite retraced over -1.6%. The Chinese market is drifting down towards 2-year lows again.
For the session the Benchmark crude NYMEX for December delivery was up 0.6% (or $US0.60) settle at $US7.32. Copper prices are seeking a support level as Copper for December delivery was down -0.3% (or -0.9 cents) at $US3.2740. December gold was down -0.6% (or -$US10.20) at $US1,691.60. .
BBG – Billabong the surfwear maker and seller says it does not know why its shares dropped -12.5 per cent on the highest trading volume in three months on Thursday.
BXB – Brambles the pallet services provider has acquired Canadian counterpart company Paramount Pallet for $C13 million ($A12.7 million).
DUE – DUET Group the electrical wire and gas pipeline owner, has confirmed it will pay a distribution of 16 cents per stapled security this financial year.
FGL – In the final hurdle for the takeover the Federal Treasurer Wayne Swan has approved SABMiller’s $11.5 billion deal to acquire Foster’s under foreign acquisitions laws, but imposed conditions requiring the company to keep brewing operations in Australia.
FMS – A Russian steel making giant is expected to do a deal with Fortescue Metals Group after a $554 million takeover of Flinders Mines, which operates an iron ore project next to Fortescue’s Solomon development.
IZM – Mining giant Rio Tinto has agreed to take part in Intercept Minerals’ bauxite project on Tiwi Islands.
MYR – Myer has reiterated that sales this fiscal year will be flat and net profit will decline as much as 10 per cent because of the tough retail conditions. Myer chairman Howard McDonald, telling shareholders at its AGM, that while there were no clear short-term indicators of when consumer confidence would return to more normal levels, Myer remains highly leveraged to any upturn, and the recent cut in official interest rates by the RBA should help in the lead up to the critical Christmas trading period.
SDL – Sundance Resources has requested its shares be placed in a trading halt pending an update on the proposed take-over by Hanlong Mining Group.
WHC – Whitehaven Coal says it will have an additional 2.4 million tonnes per annum (Mtpa) of port capacity at Port Waratah Coal Services in Newcastle from 2015.
Commodities Stock Index down -1.2%
Gold Stocks Index down -1.4%
Oil Stocks Index down -1.1%
US ADRs – Broadly Lower!!…
By Michael Hevern
Head of Research