* US stock markets eased from multiyear highs, as traders were still cautious over the European economic outlook.
* European stock markets finished lower overnight, as traders remain cautious despite the Greek debt deal and after disappointing eurozone growth figures.
* Asian markets ended higher yesterday. The story of the day for Australia is the leadership debate for the Prime Minister’s position.
* Commodities prices eased, with Gold trading around $US1,777 while crude-oil closed around $US106.
The SPI Futures is trading above the key pivot level of 4180, ending down -0.3% (or -12 points) at 4,261. The key levels for our index today are 4180 to 4280.
Australian shares are expected to ease again today, as the Prime Minister’s position is in dabate, and as the Aussie reporting season continues. Remember it is options expiry. Markets eased in the US and Europe overnight.
See below for ASX listed companies in the news today.
Economics News Today
US Markets
US stock markets eased from multiyear highs, as traders were still cautious over the European economic outlook.
The three major indices eased overnight breaking a 3-day winning streak. Energy was the only sector to finish in the green as crude-oil melted higher.
Investor sentiment was hit by an unexpected contraction in the eurozone business activity in February. Also in economic news, US January sales of existing homes topped expectations, but December’s number was revised sharply lower.
In corporate news tech stocks disappointed, as HP reported 4Q earnings below expectations and Dell also disappointed on earnings expectations and provided a 1Q sales outlook below expectations. Home builders sold off after Toll Brothers lost over 5% after the home builder reported a fiscal 1Q loss.
Commodities eased, except for gold futures which rose to 3-month highs, while crude-oil prices held at 8-month highs.
Most of the ten company groups that make up the S&P index traded lower with the Materials down -0.2%, Financials down -1.3%, Industrials down -0.1%, Technology down -0.4%, while Consumer Staples were down -0.3% but Energy was up 0.2%.
The Dow Jones closed down -0.2% (or -27 points) at 12,938, the S&P 500 index was down -0.3% (or -4 points) at 1,357, the Nasdaq ended down -0.5% (or -15 points) at 2,933 and the smaller cap Russell 2000 was down -0.8%.
European Markets
European stock markets finished lower overnight, as traders were still cautious despite the Greek debt deal and after disappointing eurozone growth figures. The Stoxx Europe 600 ended down -0.8%.
Sentiment was dampened by Fitch Ratings’ move to place Greece in selective default, cutting the Greek credit rating to single-C (from -CCC), citing that the bond-swap agreement with private creditors (where they suffered a 53% haircut), is in effect a restricted default.
Also hurting sentiment was a reading on business activity in the eurozone, which unexpectedly contracted in February, as the Markit Economics purchasing managers index (PMI) fell to 49.7 (below expectations and down from 50.4 in January). These figures are fuelling concerns over the impact of austerity measures on the eurozone economy.
In London the market fell after the minutes of the Bank of England’s Monetary Policy Committee meeting unexpectedly showed that two members pushed for a GBP75 billion increase in the central bank’s quantitative-easing program.
In London the FTSE 100 index closed down -0.3% (or -11 points) at 5916, the German DAX was down -0.9% (or -64 points) at 6,844 while in France the CAC was down -0.5% (or -18 points) at 3,447. Spain was down -1.3% and Italy ended down -0.9%.
Asian Markets
Asian markets ended higher yesterday. The story of the day for Australia is the leadership debate for the Prime Minister’s position, a vote has been scheduled for Monday.
Across the region stocks eased early due to doubts over the adequacy of the latest Greek rescue plan, but they recovered in the afternoon session. The energy sector supported the gains as crude-oil prices remain at a 9-month high. Financials also provided support on the back of the Chinese government’s commitment to easing.
In China the Shanghai Composite Index finished above 2400, the key 6-month pivot level for this market. Japanese stocks rose on the back of weakness in the yen, which is coming under pressure as the Japanese economy has switched to a trade deficit, its first in three decades, which is a fundamental shift in that economy going forward.
In China the SSE Composite closed up 0.9% (or 22 points) at 2,403, while in Hong Kong the Hang Seng Index was up 0.3% (or 70 points) at 21,549 and in Japan the Nikkei 225 Index closed up 0.9% (or 90 points) at 9,554. The South Korean KOSPI was up 0.2% for the session, while the Indian market down -1.5%.
Commodities
The Dollar Index was higher at 79.23 on a lower Euro, while the Australian Dollar last traded lower at 1.0636. Commodities prices eased.
For the session the benchmark crude NYMEX for March delivery was down -0.2% (or -$US0.18) to settle at $US106.07. Copper prices are seeking a support level as Copper for February delivery was down -0.1% (or -0.4 cents) at $US3.8295. February gold was up 0.7% (or $US12.90) at $US1,777.
ASX News Today
AIO – Asciano the ports and rail operator says it expects higher earnings in the 2H12 after lifting profits in all of its divisions.
CCL – Coca-Cola Amatil, the beverages supplier, says further boosting of its investments in Indonesia and PNG will be a high priority in 2012.
CSL – CSL, the blood products and vaccines maker, has upgraded its full year profit growth forecast to 13 percent despite a fall in 1H12 earnings.
CVU – Clearview Wealth, the financial advising service, says its underlying first half profit fell by 12 percent due to weak investment markets and the cost of launching new products.
MOC – Mortgage Choice, the independent mortgage broker, says its first half profit fell by 26 percent to $6.5 million due to lower than expected revenue from its comparison website and higher costs.
RIC – Ridley Corp Australia’s largest producer of animal feed and naturally evaporated salt, says heavy rainfall has hit the profits.
SEK -Seek, the online jobs website firm, has posted a record first half profit of $60 million, due to growth in Australian employment and its Chinese and education businesses.
SUL – Super Retail Group has ignored gloomy retail trading conditions to post a 40 percent surge in first half profit.
SUN – Suncorp Group has increased its interim dividend after overcoming weak economic conditions to post a 74 percent increase in first half profit, but the insurance part of the business has been a drag on the results.
SWM – Seven West Media says its media businesses have continued to gain advertising market share in a difficult economic environment and are well-placed for the next 12 months.
TSE – Tranfield Services has more than doubled its 1H12 profit and says it expects its full year profit will be between $130 and $135 million.
WPL – Woodside Petroleum says its full year profit fell by 4.3 percent due to the cost of delays to its Pluto liquefied natural gas (LNG) project.
WTF – Wotif.com Holdings the online travel bookings company has posted a record first half profit as it successfully expands into flight bookings as well as accommodation.
Corporate News
Toll Holdings (TOL) Interim 2012 Results
Ex-dividend Date
Market Summary
ASX – to open lower
Commodities Stock Index up 0.3%
Gold Stocks Index up 1.5%
Oil Stocks Index down -0.1%
US ADRs – Broadly Mixed
BHP down -0.2%, RIO down -1.3%; AWC down -1.5%
ANZ up 0.5% & NAB down -0.2%
NEM up 2.1%, JHX , NWS down -0.8%
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
