Presented by Michael Hevern
MDS Financial
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US Markets
Recover on European $1Tn Bailout Package
SP500: up 1.4% at 1,171
DOW up 1.4% at 10,896
Broadly Higher – “Flash Crash” Memory Fades
NASDAQ: up at 2,425
Dollar Index: Strong at 84.9, Euro Weakens
A$ up 89.4c
FTSE: Up 0.9% at 5,383 – Brown Out!; New Government
DAX up 2.4% – ECB $1T Rescue
Oil: down 1.1% at ($US75.50)
Recovers Despite Inventories Building
Gold: up 1.3% at ($US1,238)
Commodities Weigh;
SPI: above key 4600 ASX
SPI up 59 (13%) at 4642
ASX News
RIO – keeps pressure on the government, with CEO Tom Albanese talking to at an U.S. mining conference, saying that they were “shocked” and “concerned” over the proposed Resource Rent TAX.
Banks – face historically large class action over the overcharging of exception fees.
These fees have collected the banks over $5 billion in the past five years.
CBA – on course for record profits, helped by fall bad debts.
CommBank’s profit currently stand at $4.5 billion, on track for FY profit of $6 billion.
OZL – upgraded by Credit Swisse target $1.30.
NUF – has been removed form the MSCI Australia Index. Shares down 3.7%
MCC – has been added form the MSCI Australia Index. Shares up 1.4%
STO – will shelve $8 billion QLD LNG project citing Resource Tax concerns.
RBS haves downgraded their target to $15 (from $17) as a result.
ORG – plans to build a $35 billion LNG plant in Gladstone, likely to be in question as a result of Santos decision.
TCL – due to resume from trading halt. Has t/o offer for $5.57/share, but bidders threatening to walk away.
Gold miners will be in focus today, including: Lihir and Newcrest; KCN, RSG, Equinox, PNA, as gold prices are at new highs.
ASX – to open higher
US & UK/Europe – positive leads
U.S. ADRs – Generally Negative!!!
BHP up 0.6% & RIO up 1.4%; AWC up 3.3%
NEM up 0.9%, JHX flat 0.1%, NWS up 1%
Commodities Stock Index up 1.5%
Gold Stocks Index up 0.8%
Oil Stocks Index up 1.1%
