Online Stockmarket Trading Update

* US stock markets initially jumped higher after the news from Greece.Â
* European stock markets eased on the close overnight, as investors looked for the next roadblock to prosperity.
* Asian stock markets ended mixed yesterday, as European approval for the Greek debt deal was pretty much factored in.
* Commodities prices traded higher. Gold prices traded around $US1,759 and crude-oil closed up around $US106.

The SPI Futures is trading above the key pivot level of 4180, ending down -0.4% (or -19 points) at 4,254. The key levels for our index today are 4180 to 4280.

Australian shares are expected to ease today, as the Aussie reporting season continues.  Remember it is options expiry on Thursday.  Markets were mixed in the US and Europe overnight, as the Greek debt package has been agreed upon.

See below for ASX listed companies in the news today. 

US Markets

US stock markets initially jumped higher after the news from Greece.  The Dow Jones Industrial Average broke the 13000 level for the first time since May 2008, before the GFC, but backed off this level by the close.  

Stocks started the session with a boost after news that the eurozone finance ministers agreed to a EUR130 billion rescue deal that requires private creditors to take an over 50% write-down on around EUR200 billion worth of Greek debt.  This deal avoids the prospect of a disorderly default at least in the near-term.  

In the broader markets the S&P 500 stock index and the tech-heavy Nasdaq ended slightly lower.  The Materials, Industrials, Energy and Technology sectors all finished in the green, while Consumer related and Healthcare sectors weighed.  

Energy stocks got a boost as crude-oil traded close to $US106, a 9-month high, due to the ongoing political tensions with Iran.

The ten company groups that make up the S&P index traded mixed, with Materials up 0.7%, Energy up 0.7%, Financials down -0.1%,  Industrials up 0.4%, Technology up 0.4%, while Consumer Staples were down -0.4%.

The Dow Jones closed up 0.1% (or 16 points) at 12,966, the S&P 500 index up 0.1%  (or 1 point) at 1,362, the Nasdaq ended down -0.1% (or -3 points) at 2,948 and the smaller cap Russell 2000 was down -0.7%.

European Markets

European stock markets eased on the close overnight, as investors looked for the next roadblock to prosperity after the Greek debt deal was agreed upon by the eurozone finance ministers, approving terms of a bailout package for the country. The European Stoxx Europe 600 index declined -0.5%, breaking a 4-day rally.  The Greek market fell -3.5% for the session as financials dragged. 

Across the region the financial stocks weighed, and the airlines stocks were also under pressure after crude-oil traded around $US106.  Sentiment was also weighed down on concerns that the Greek debt deal is a stop-gap measure to avoid a disorderly default, but a Greek default is on the cards “down the road”.  Energy stocks rallied on the back of the higher crude-oil prices. 

In London the FTSE 100 index closed down -0.3% (or -17 points) at 5928, the German DAX was down -0.6% (or -40 points) at 6,908 while in France the CAC was down -0.3% (or -7 points) at 3,465. Spain was down -0.6% and Italy ended down -0.1%.

Asian Markets

Asian stock markets ended mixed yesterday, as traders reacted to European approval for the Greek debt deal was pretty much factored in.

In Japan the Nikkei Stock Index eased as profit takers stepped in on the export-related stocks. In Hong Kong the Hang Seng Index rose, while in China the Shanghai Composite Index added nearly 1%.

Telecom firms were among the top performers, with China Telecom up 4.1% after news that it would begin offering Apple’s iPhone 4S next month, while resource stocks showed weakness, particularly in Hong Kong, and energy stocks eased after Citigroup downgraded Sinopec to neutral from buy.

Commodities

The Dollar Index was higher at 79.00 on a lower Euro, while the Australian Dollar last traded lower at 1.0665. Commodities prices traded higher.

For the session the benchmark crude NYMEX for March delivery was up 2.5% (or $US2.60) settle at $US105.88.  Copper prices are seeking a support level as Copper for February delivery was up 3.5% (or 12.9 cents) at $US3.7970.  February gold was up 1.9% (or $US32.60) at $US1,759.  

ASX News Today

AIX – Australian Infrastructure Fund says it is proceeding with the sale of non-core assets and looking at other ways to achieve greater securityholder value after reporting a fall in 1H12 profit.

CFX – CFS Retail Property Trust, the shopping centre group, remains confident of a recovery in the sector, despite posting a 42 percent slide in 1H12 profit.

DOW – Downer, the train manufacturer and engineering firm, says strong gains in its mining division have helped it return to profitability, and the company expects solid results in 2012.

EHL – Emeco the earthmoving equipment provider, is making the most of the resources boom, after posting a 20 percent rise in first half profits.

FAN – Fantastic Holdings, the furniture retailer, has lifted its first half profit by more than a third to a record $13.2 million despite depressed trading conditions.

FLT – Flight Centre has reported a double-digit lift in 1H12 net profit and upgraded profit guidance for the full year.

IIN –  iinet Ltd the internet service provider, says net profit rose 17 percent and subscriber numbers grew to 860,000 in the first half of 2011/12.

LEI – Leighton Holdings’ says its Middle East subsidiary has won a $515 million contract to build a luxury hotel complex in Dubai.

MGR – Mirvac Group the property developer has returned to first half profitability, adding it will continue to cater for an increasing demand for medium-density housing.

MLB – Melbourne IT the internet domain name manager, says it is well-positioned for the future despite a fall in annual profit.

MND – Monadelphous, the engineering firm, says its 26 percent rise in 1H12 profit is a company record, adding that a growing number of resources projects will continue to drive revenue growth.

OSH – Oil Search has lifted its full year net profit by 9 percent to $196.2 million, driven by higher realised oil prices and lower exploration expense.

OST – OneSteel, Australia’s second-biggest steelmaker, has posted a $74 million first half net loss but is bullish about its growth through its mining interests. 430 more jobs will go by June.

SHL – Sonic Healthcare Ltd has posted an 8 percent increase in first half profit as it continues to take a greater share of the market despite global uncertainty.

Commodities Stock Index  up 1.1%
Gold Stocks Index up 2.5%
Oil Stocks Index up 0.3% 

US ADRs – Broadly Higher

BHP up 2.3%,  RIO up 1.6%; AWC up 3.0%
ANZ up 0.8% & NAB up 1.5%
NEM   up 3.5%, JHX up 5.7%, NWS  down -0.2%

By Michael Hevern
Head of Research

Tags: Asian Markets, ASX, ASX News, Business News, Commodities, Crude Oil, European Markets, Ex Dividend, gold price, Nasdaq, Stock Market Analysis, stockmarket, trading, US Market wrap

This entry was posted on Wednesday, February 22nd, 2012 at 9:43 am and is filed under Morning Wrap, Stock Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.