* US stock markets broke a four losing streak overnight, in a “Risk-On” move.�
* European stock markets surged overnight, climbing to near monthly high, reversing a four-day sell-off.
* Asian market are set to rebound today, following the strong leads from the US and Europe.
* Commodities prices higher, Gold prices are trading around $US1,615 while crude-oil closed up around $US89.
The SPI Futures is trading around the key support level of 4080, ended up 0.9% (or 38 points) at 4140. The key levels for our index today are 4120 to 4200. Remember it is the day after options expiry so the market will be active early.
See below for ASX listed companies in the news today.
US stock markets broke a four losing streak overnight, in a “Risk-On” move as the ECB promises to act. Stocks were higher across the board.
The Dow Jones has its best gains in nearly three weeks., while the S&P500 jumped nearly 2% for its biggest gain in almost two weeks. The energy sector led the sector gains up nearly 3%, closely followed by Financials, Industrials and Technology up over 1.5%.
Traders jumped on to the stocks and commodities train, after the ECB reassured investors that it is committed to protecting the eurozone from financial collapse.
In economic news the Commerce Department showed orders for durable goods climbed 1.6 percent in June. The median forecast of economists surveyed by Bloomberg called for a 0.3 percent gain. After market Facebook earnings disappointed.
The earnings season continues and of the 263 S&P500 companies that have reported 72 percent have topped analysts estimates on the earnings side, but only 43% have beaten on revenue.
All ten company groups that make up the S&P index traded higher, with Materials up 0.5%, Energy sector up 2.9%, Financials sector up 1.5%, Industrials sector was up 1.5%, Health Care up 0.9%, Technology was up 1.5%, while Consumer Staples were up 1.6%.
The Dow Jones closed up 1.7% (or 212 points) at 12,887, the S&P 500 index up 1.7% (or 22 points) at 1,360, the Nasdaq ended up 1.4% (or 39 points) at 2,893 and the smaller cap Russell 2000 was up 1.0%.
European stock markets surged overnight, climbing to near monthly high, reversing a four-day sell-off. The Stoxx Europe 600 Index jumped 2.5%, for its biggest gain since the end of June. The gauge had dropped -4.4% in the previous four sessions, as traders hit the sell button as Spain and Italy has to pay unsustainable rates for their debt borrowings.
Traders started buying after the ECB President Draghi pledged to do “whatever it takes” to preserve the EU economic zone. stocks surged across the boards, led by financials, but Telecom, Consumer, Mining and Energy sectors powered higher.
The ECB announcemnt saw Spanish 10 year bond yields fall below 7%, while Spanish 2-year yields fell the most this month after Draghi said addressing high yields on sovereign debt was within the central bank’s mandate. The ECB was reponding to Spanish policy makers calls on the central bank to fight a renewed round of financial turmoil that pushed the country’s bond yields to euro-area records this week. Italian bond yields also subsided.
In London the FTSE 100 index closed up 1.4% (or 75 points) at 5,573, the German DAX was closed up 2.8% (or 176 points) at 6,582, while in France the CAC closed up 4.1% (or 125 points) at 3,207, Spain closed up 6.1% and Italy closed up 5.3%. Greece up 2.4%.
Asian market are set to rebound today, following the strong leads from the US and Europe.
Asian markets were subdued yesterday, with the Chinese market continuing hover around 4-year lower, after officials commented that they think that their easing measures will be put on hold near-term. The Chinese property stocks sold off on the news.
More broadly the MSCI Asia Pacific Index rose 0.9%, with five stocks rising for every four that fell. All 10 industry groups on the measure advanced, led by financial stocks on rumours that the US Federal Reserve will embark on a third round of quantitative easing.
In China the SSE Composite closed down -0.5% (or -10 points) at 2,126, while in Hong Kong the Hang Seng Index closed up 0.1% (or 16 points) at 18,893, and in Japan the Nikkei 225 Index was up 0.9% (or 77 points) at 8,443, South Korean KOSPI closed up 0.7% for the session, while the Indian market closed down -1.2%.
The Dollar Index was lower at 82.83 on a higher Euro, while the Australian Dollar last traded higher at 1.0396. Commodities prices traded higher.
For the session the Benchmark crude NYMEX for August delivery was up 0.4% settled at $US89.39. Copper prices are looking for key support level as Copper for August delivery was up 0.6% at $US3.3935, while August Gold was up 0.4% (or $US7.00) at $US1,615.10.
ASX News Today
ALZ – Australand is confident of delivering earnings growth in 2012 after reversing its profit slide amid tough times in the property development market.
APN – APN News & Media says it does not know of any unannounced information that would explain its recent share price fall.
BTA – Biota Holdings the drug maker has posted a 17 percent rise in global sales of its key flu drug Relenza in the fourth quarter.
CTX – Caltex Australia says it will close its Kurnell refinery in Sydney in the second half of 2014 as part of a supply chain restructure.
DLS – Drillsearch Energy has announced a $40 million capital raising to drive development of its oil and gas projects.
ERA – Energy Resources of Australia (ERA) says the uranium market remains challenging after it recorded a net first half loss of $59.86 million.
HDF – Independent directors of Hastings Diversified Utilities Fund’s (HDF) responsible entity are to hold talks with APA Group about its sweetened $1.34 billion takeover offer.
MST – Metal Storm the defence technology company has been placed in voluntary administration.
NCM – Newcrest Mining has exceeded its copper production targets for its 2012 financial year, while gold production is in line with forecasts.
NUF – Nufarm the Agribusiness, expects to generate a higher underlying profit in the current financial year as its businesses in Australia and Brazil perform solidly.
OSH – Oil Search the Australian company, has suspended loading operations
in Papua New Guinea after an oil spill that the company described as minor.
QAN – Qantas Airways the national carrier has confirmed it is in talks with a number of airlines about potential alliances, including Dubai-based Emirates.
ROC – Roc Oil remains on track to achieve its forecast of between 6,000 and 7,000 barrels of oil equivalent a day by the end of the year, despite a 14 percent drop in the June quarter.
WES – Wesfarmers says its Coles supermarket full year sales had leapt 6.1 percent to $33.698 billion.
Integra Mining Ltd (IGR) Quarterly Activities Report
Oceanagold (OGC) Q2 2012 Results
Platinum Australia Ltd (PLA) June Quarterly Report
Ramelius Resources Ltd (RMS) June Quarterly Activities Report
Silver Lake Resources Ltd (SLR) Quarterly Activities Report.
ASX – to open higher
US & UK/Europe – sharply higher
By Michael Hevern
Head of Research
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