Navitas Limited (NVT) will go ex dividend on 9/2/2012. The current dividend payment is 9.4 cents and it is 100% franked. The record date is 15/2/2012 and the dividend will be paid on 29/2/2012. Based on the full year payment the dividend yield is 7.1%.
*Current Yield: 3.1% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.
Milton Corporation (MLT) will go ex dividend on 9/2/2012. The current dividend payment is 38 cents and it is 100% franked. The record date is 15/2/2012 and the dividend will be paid on 29/2/2012. Based on the full year payment the dividend yield is 4.9%.
*Current Yield: 2.4% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.
US stock markets rose overnight, as investors remain relatively unconcerned over the lack of a conclusion over the Greek debt-refinancing negotiations.
The Dow Jones closed at fresh multi-year highs, its highest since May 2008. Â In the broader markets the indexes held on to recent gains, again seven of the S&P 500′s 10 sectors were higher, led by again by energy and utilities. Â
Talks between Greece and its creditors on a loan deal continue as a new fiscal pact is necessary for Greece to receive the next round of bailout funds. Â The Federal Reserve Chairman Ben Bernanke address the US Senate budget committee and there has been a modest increase in the long-term normal rate of US unemployment, but did not say anything new. Â
In corporate news, Coca-Cola rose, after reporting 4Q earnings and revenue that exceeded estimates, and  MasterCard said it will double its quarterly dividend as the credit-card processor on the back of a strong profits and revenue, while Coinstar (the provider of Redbox DVDs) climbed 14% after the company reported fourth-quarter results that were well above expectations and provided a first-quarter revenue outlook that exceeded forecasts. Â
Commodity prices rose on the back of a weaker US dollar.
All ten company groups that make up the S&P index traded mixed, with the Materials down -0.1% , Energy sector was up 0.5%, Financials sector down -0.1%, Industrials sector was down -0.1%, Technology was up 0.3%, while Consumer Staples were up 0.5%.
The Dow Jones closed up 0.3% (or 33 points) at 12,878, the S&P 500 index up 0.2%  (or 3 points) at 1,347, the Nasdaq ended up 0.1% (or  4 points) at 2,532 and the smaller cap Russell 2000 was up 0.1%.
European stock markets closed lower overnight, but pared losses in late trade on reports that Greece was close to reaching an agreement needed to qualify for a second bailout. The Stoxx Europe 600 index closed 0.3% lower. Â
European markets recovered from early losses, after news that Greek government officials were drafting a final agreement on budget cuts to be presented to political leaders. Â The Greek political parties have been struggling to finalize details of another round of austerity measures, intended to pave the way for their second bailout package for Greece. Â
In economic news German industrial output data unexpectedly fell a seasonally adjusted 2.9% on the month in December, the biggest drop since the days of the GFC. Â This weighed on German stocks particularly autos and miners. Â In corporate news, Glencore International PLC and Xstrata PLC said they agreed to an all-share merger of equals that would create a $90 billion natural resources company, however some institutions are saying that the deal undervalues Xstrata.
In London the FTSE 100 index closed down -0.1% (or -2 points) at 5,890, the German DAX was down -0.2% (or -10 points) at 6,754 while in France the CAC was  up 0.2% (or 6 points) at 3,411, Spain was up 0.1% and Italy ended up 0.6%.
Asian stock markets eased yesterday, as markets reacted to key levels. Across the region stocks in the property, coal mining and banking sectors lost ground, because of disappointment over the Chinese government’s lack of monetary policy easing measures.  The spectre of lack of clear progress in ongoing Greek debt restructuring negotiations also weighed on sentiment.
In China the market fell as tight liquidity conditions and the absence of an easing in the reserve ratio requirements for banks weighed on stocks. Â Hong Kong and Japanese markets ended flat.
In China the SSE Composite was closed up 0.1% at 2,331 while in Hong Kong the Hang Seng Index was down -0.2% (or  -47 points) at 20,709 and in Japan the Nikkei 225 Index closed up 1.1% (or  97 points) at 8,929, South Korean KOSPI was up 0.1% for the session, while the Indian market up 0.6%.
Commodities
For the session the Benchmark crude NYMEX for March delivery was down -0.9% (or -$US0.95) settle at $US97.19. Â Copper prices are seeking a support level as Copper for February delivery was down -1.0% (or -3.8 cents) at $US3.8580. Â February gold was down -0.9% (or -$US15.10) at $US1,720.Â
ASX News Today
AKI – Suitor Exxaro Resources the South African miner has all but 27 percent for minimum acceptance level in its $338 million take-over bid for African Iron the Perth-based iron ore explorer.
BKN- Brdken the mining and rail equipment manufacturer says first-half profit is up 65 percent and its full-year expectations remain unchanged.
CLO – Clough the engineering and construction firm, has won a $140 million contract for work on Inpex’s $US34 billion Ichthys liquefied natural gas (LNG) project.
COH – Cochlear has suffered a $20 million dollar loss in the first half of its financial year after a mass recall of one its most popular bionic ear devices.
LEI – Leighton Holdings subsidiary Thiess has won a $1 billion mining contract to extend the life of OZ Minerals’ Prominent Hill copper and gold mine.
MQG – Macquarie Group says full-year net profit is expected to fall by as much as 25 per cent amid difficult trading conditions.
NAB – National Australia Bank lifted cash earnings in the first quarter to $1.4 billion but the bank says higher funding costs are impacting its business.
TCL – Toll road operator Transurban expects a strong performance in the second half of the financial year as it continues major construction projects in Australia and the US and finalises contracts on other developments.
Corporate News
Commodities Stock Index  up 0.1%
Gold Stocks Index down -0.1%
Oil Stocks Index up 0.6%Â
US ADRs – Broadly Higher!!…
BHPÂ down -0.5%, Â RIOÂ down – 0.5%; AWC up 1.4%
ANZÂ down – 0.7% &Â NABÂ up 0.3%
NEM   down -0.2%, JHX up 0.9%, NWS up 1.2%
By Michael Hevern
Head of Research
.
* Â US stock markets eased overnight, with the 5-week rally pausing as markets trade at key levels.
* Â European stock markets generally ended in the red overnight, as debt concerns resurfaced. Across the region banking shares led decliners.
* Asian stock markets played catchup yesterday, following the US investors on better-than-expected US employment figures.
* Commodities prices traded lower, as Gold prices dropped lower to around $US1,720 and crude-oil closed down around $US97.
The SPI Futures is trading above the key pivot level of 4230, ending up 0.4% (or 15 points) at 4,271. The key levels for our index today are 4230 to 4300.Â
Yesterday Aussie shares played catchup with their overseas counterparts, but today traders should be looking to protect recent profits, as investors wait for some conclusive news on the Greek debt talks and today’s RBA decision.  Markets eased in the US and European markets overnight. Â
The RBA is expected to cut interest rates to 4% today, but investors and borrowers will be watching to see how much of the cut is passed on.
See below for ASX listed companies in the news today.
* RBA Interest Rate Decision.Â
US stock markets eased overnight, as the 5-week rally paused, as markets trade at key levels. Trader focus turned to debate in Greece over fiscal austerity, and the pending bailout. Â
The three major indexes took a breather, finishing flat for the session. Â To put this in perspective, the recent rally has seen the Dow and the S&P 500 each rise nearly 20% since early October. Overnight seven of the S&P 500′s 10 sectors finished in the red, led lower by materials and financials, but energy stocks provided some support. Â
Sixty percent of the S&P 500 companies have reported so far and to date earnings have surprised to the upside for stocks which are considered leaders in their sector, e.g. Apple and Caterpillar, but consumer retail margins are shrinking as shown by Amazon’s huge profit fall.
All ten company groups that make up the S&P index traded lower, except for Energy which was up 0.9%. Materials were down -0.2%, Financials were down -0.1%, Industrials were down -0.1%, Technology was flat, while Consumer Staples were down -0.1%.
The Dow Jones closed down – 0.1% (or -17 points) at 12,845, the S&P 500 index was down -0.1% (or 1 point) at 1,344, the Nasdaq ended down -0.1% (or -1 points) at 2,528 and the smaller cap Russell 2000 was down -0.3%.
European stock markets generally ended in the red overnight, as debt concerns resurfaced. Â The Stoxx Europe 600 index closed down 0.1%, breaking a 4-day winning streak. Â
Across the region banking shares led decliners, however Greek banks bounced around 20% from recent lows as the fears of nationalisation subsided. Â
Trader focus turned to debate in Greece over fiscal austerity, and the pending bailout. Â Greek leaders are yet to conclude debt talks with private debt holders to write down the country’s debt by EUR100 billion. A resolution is crucial as Greece must repay EUR14.5 billion of maturing debt in March to avoid a default. The political leaders tried to agree on fiscal austerity measures needed to keep Greece from defaulting on its debts next month. Greece has agreed to cut 15,000 public-sector workers by the end of this year. Â
Investors are also concerned about Portugal, which could be the next in line for a bailout after their borrowing costs recently surged with the 10-year government bond yield reaching euro-era highs. The 10-year Portuguese government bond yield is at 17.39%. Â
In London, miners were again in focus with Randgold Resources up 2.2% after posting a fourfold rise in 4Q net profit, which led to a doubling of its dividend payment. Glencore International PLC fell -4.5% and Xstrata shares were down -1.7%, as traders heard that the proposed merger with Xstrata PLC might be investigated by the European Union competition commissioner. Â
In London the FTSE 100 index closed down -0.1% (or -9 points) at 5,892, the German DAX was down -0.1% (or -2 points) at 6,765 while in France the CAC was down -0.7% (or -22 points) at 3,405. Spain was down -0.3% and Italy ended down -0.3%.
Asian stock markets played catchup yesterday, following the US investors on better-than-expected US employment figures.
In Japan the market reached its highest level in three months, led by exporters on the prospect of better global demand into 2012. Â In China the Shanghai Composite Index rose to close at 2-month highs, as the gains were led by growth-sensitive stocks.
In China the SSE Composite closed up 0.1% at 2,331 while in Hong Kong the Hang Seng Index was down -0.2% (or -47 points) at 20,709 and in Japan the Nikkei 225 Index closed up 1.1% (or 97 points) at 8,929. The South Korean KOSPI was up 0.1% for the session, while the Indian market was up 0.6%.
The Dollar Index was higher at 79.09 on a higher Euro, while the Australian Dollar last traded higher at 1.0762. Commodities prices traded lower.
For the session the benchmark crude NYMEX for March delivery was down -0.9% (or -$US0.95) to settle at $US97.19. Â Copper prices are seeking a support level as Copper for February delivery was down -1.0% (or -3.8 cents) at $US3.8580. Â February gold was down -0.9% (or -$US15.10) at $US1,720.Â
AUN – Austar, the regional pay TV provider, is seeking court approval to postpone a shareholder vote on Foxtel’s proposed take-over because the competition watchdog is yet to approve the deal.
DOW – Downer, the engineering firm and major private partner in the troubled Reliance Rail project, has welcomed a restructure of the group’s financing. Â Elsewhere Downer said it has won a $570 million contract to provide services at the Karara iron ore project in WA.
EXT – Extract Resources says the proposed $2.1 billion takeover bid for the Perth-based uranium explorer and developer of one of the world’s biggest uranium assets by a Chinese state-owned entity has taken a step closer, but a direct offer has not been made.
NAB – National Australia Bank’s cash earnings in the first quarter of its fiscal year are up 8 percent but the bank says higher funding costs are impacting its business.
PAN Â - Panoramic Resources has delived an “opportunistic” takeover bid for the base metals explorer Magma Metals.
PPT – Investment firm Perpetual said that it stood Chris Ryan down over the weekend because of differences with the board over strategy.
QAN – Qantas boss Alan Joyce has warned a parliamentary hearing that proposed legislative changes are a major threat to the airline’s future.
TLS – Telstra is expected to report a double-digit increase in first half profit later this week, as the telco grows market share, particularly in mobile, as it keeps costs in check.
WBC – Westpac boss Gail Kelly says the bank may not pass on the central bank’s expected interest rate cuts this week.
WHC – Whitehaven Coal has closed four mines in NSW as a result of recent heavy rainfall and says it has lost about one week’s worth of production.
Reporting today: Bradken (BKN), Challenger (CDI), Cochlear (COH), Reckon (RKN) and Transurban (TCL)
ASX – to open lower
US & UK/Europe – lower
Commodities Stock Index  up 0.1%
Gold Stocks Index down -0.1%
Oil Stocks Index up 0.6%Â
US ADRs – Lower
BHPÂ down -0.5%, Â RIOÂ down – 0.5%; AWC up 1.4%
ANZÂ down – 0.7% &Â NABÂ up 0.3%
NEM   down -0.2%, JHX up 0.9%, NWS up 1.2%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
The SPI Futures is trading above the key pivot level of 4230, ended up 1.3% (or 56 points) at 4,278. The key levels for our index this week are 4180 to 4350.Â
Aussie shares are seet to play catchup with their overseas counterparts, as investors wait for some conclusive news on the Greek debt talks and the US monthly employment figures were better-than-expected.  We had strongly positive leads from the US and European markets on Friday.  There is plenty of economic news out this week with seven central banks meeting, including the RBA which is expected to cut interest rates agains on Tuesday.Â
Traders pushed the markets higher after stronger-than-expected employment report from the U.S. Labor Department, which showed that in January Nonfarm payrolls rose 243,000 last month, marking the biggest gain since April, and the unemployment rate fell from 8.5% to 8.3%, its lowest since February 2009.Â
All ten company groups that make up the S&P index traded higher with the Materials up 1.4% , Energy sector was up 1.7%, Financials sector up 0.4%, Industrials sector was up 0.6%, Technology was up 1.3%, while Consumer Staples were up 2.1%.
The Dow Jones closed up 1.2% (or 157 points) at 12,862, the S&P 500 index up 1.5% Â (or 19 points) at 1,344, the Nasdaq ended up 1.6% (or 46 points) at 2,905 and the smaller cap Russell 2000 was up 2.2%.
European stock markets rallied, on the back of the US employment figures. The Stoxx Europe 600 index  rose 1.7% and was up 3.6% for the week. Â
Investor sentiment was also boosted by data from the eurozone composite purchasing manager’s index (PMI) which  confirmed growth in the private-sector activity in January, as the index rose to 50.4 in January (up from 48.3 in December). Across the region financials and growth sensitive stocks led the gains, as commodites also gained. Â
Markets across the region rose with the exception of Greece which fell -3.8%, after media reports said the Greek Prime Minister may resign if a new financing plan is not backed by the three parties that support his interim unity government. Eurozone finance ministers also cancelled a meeting due to discuss Greece’s second bailout, that had been set for Monday.Â
In London the FTSE 100 index closed up 1.8% (or 105 points) at 5,901, the German DAX was up 1.7% (or 111 points) at 6,766 while in France the CAC was  up 1.5% (or 51 points) at 3,427, Spain was up 1.0% and Italy ended up 1.0%.
Asian stockmarkets ended in mixed on Friday, as traders were cautious ahead of Friday’s US employment report. Â
Traders will be taking their lead form the US today and are set to play catchup today. The Japanese and South Korean markets lost ground. Â Chinese stocks recovered from early weakness to finish at 2-month highs, as the property sector saw some bargain hunting.
In China the SSE Composite was closed up 0.8% at 2,330 while in Hong Kong the Hang Seng Index was up 0.1% at 20,757 and in Japan the Nikkei 225 Index closed down -0.5% (or  -44points) at 8,832, South Korean KOSPI was up 1.3% for the session, while the Indian market up 1.0%.
Commodities
For the session the Benchmark crude NYMEX for February delivery was up 1.5% (or $US1.48) settle at $US97.77.  Copper prices are seeking a support level as Copper for February delivery was up 3.2% (or 12 cents) at $US3.8905.  Februarygold was down -1.1% (or -$US18.90) at $US1,725.Â
ASX News Today
BLD – Boral the building materials maker has sold its Indonesian business for $US135 million ($A127.87 million) and confirmed its previous expectations for its half-year profit.
AUN – Austar the regional pay TV provider is seeking court approval to postpone a shareholder vote on Foxtel’s proposed take-over because  the competition watchdog is yet to approve the deal.
EXT – Extract Resources says the proposed $2.1 billion takeover bid for the Perth-based uranium explorer, by a Chinese state-owned entity has taken a step closer, but a direct offer has not been made.
PAN Â - Panoramic Resources has delived an “opportunistic” takeover bid for the base metals explorer Magma Metals.
WBC – Westpac boss Gail Kelly says the bank may not pass on the central bank’s expected interest rate cuts this  week.
Â
Commodities Stock Index  up 1.4%
Gold Stocks Index down -1.3%
Oil Stocks Index up 2.2%Â
US ADRs – Broadly Higher!!…
BHPÂ up 1.6%, Â RIOÂ up 0.1%; AWC up 2.2%
ANZÂ up 1.2% &Â NABÂ up 1.2%
NEM   down -2.1%, JHX up 2.0%, NWS up 1.8%
By Michael Hevern
Head of Research
* US stock markets eased overnight, as traders digested mixed earnings reports and showed caution ahead of the US Non-Farm payolls report due out tonight. Â
* European stock markets edged higher overnight, as the European Stoxx 600 index held at 6-month highs.
* Asian stock markets were broadly higher yesterday, led by commodity and financial stocks.
* Commodities prices traded mixed, as Gold prices higher to around $US1,760Â and while crude-oil closed down around $US96.
Â
The SPI Futures is trading above the key pivot level of 4180, ending flat at 4,240. The key levels for our index today are 4180 to 4230.
Yesterday Aussie shares played catchup with their overseas counterparts, but today traders should be looking to protect recent profits, as investors wait for some conclusive news on the Greek debt talks and the US monthly employment figures due out tonight. We had generally positive leads from the US and European markets overnight.Â
Â
See below for ASX listed companies in the news today.
US stock markets eased overnight, as traders digested mixed earnings reports and showed caution ahead of the US Non-Farm payolls report due out tonight. Â
The Dow industrials finished down for the seventh time in past 9 sessions.  In the broader markets the S&P 500 ended flat, while the tech-heavy Nasdaq edged higher and continues to outperform, jumping 9.8% this year, trading at six-month highs. Â
Federal Reserve Chairman Ben Bernanke addressed US lawmakers overnight, describing the pace of the US economic recovery as “frustratingly slow” and warned of the importance of addressing the US’s fiscal challenges highlighting the eurozone sovereign-debt crisis as an example of out-of-control fiscal policies. Bernanke fell short of reaffirming a QE3 package. Â
In corporate news big-pharma sold down after Merck reported 4Q revenue that were below expectations. Â A number of retailers were hammered after Abercrombie & Fitch plunged -11%, after the apparel retailer said that fiscal 4Q earnings would fall well short of expectations. Another retailer, Ann, plunged -8.5% after saying its fiscal 4Q results would be below expectations as well. On the flip side, MasterCard rose 6.7% after increased card spending helped the company turn in core earnings ahead of expectations. Â
Commodities were generally weak with crude-oil down on falling US demand and increases in supplies and copper retraced, but gold continues its rise on the back of eurozone debt concerns.
The ten company groups that make up the S&P index traded mixed with Materials down -0.5%, Energy up 0.8%, Financials up 0.5%, Industrials up 0.1%, Technology up 0.3%, while Consumer Staples were down -0.1%.
The Dow Jones closed down -0.1 % (or -11 points) at 12,705, the S&P 500 index was up 0.1% (or 1 point) at 1,325, the Nasdaq ended up 0.4% (or 11 points) at 2,860 and the smaller cap Russell 2000 was up 0.4%.
European stock markets edged higher overnight, as the European Stoxx 600 index closed 0.2% higher, holding at 6-month highs. Â
Traders pushed share prices higher after US data showed productivity was up 0.7% in the fourth quarter of 2011 and initial jobless claims were down 12,000. Sentiment was also helped by successful bond auctions with the Spanish Treasury selling nearly EUR4.6 billion of government debt with borrowing costs declining, while France successfully sold EUR7.96 billion of government debt. Â However investors continued to await a conclusion to talks between Greece and its private-sector creditors.
Mining stocks were in focus after Xstrata PLC (up 10%) confirmed it is in merger talks with Glencore International PLC (up 7%), while Vedanta Resources PLC gained 5.8% and Rio Tinto PLC rose 1.8%. Energy stocks weighed on the back of lower crude-oil prices.
In London the FTSE 100 index closed up 0.1% (or 5 points) at 5,796, the German DAX was up 0.6% (or 39 points) at 6,655 while in France the CAC was up 0.3% (or 9 points) at 3,376. Spain was up 0.8% and Italy ended up 0.1%.
Asian stock markets were broadly higher yesterday, led by commodity and financial stocks after an improvement in manufacturing data buoyed global sentiment. Â
Across the region commodity stocks were higher as positive manufacturing data is seen as a positive for global growth. Â Financials also pushed markets higher. Â It was “risk on” and the Chinese and Hong Kong markets surged 2% for the session.Â
In China the SSE Composite was closed up 1.9% at 2,313, while in Hong Kong the Hang Seng Index was up 2.0% at 20,739 and in Japan the Nikkei 225 Index closed up 0.8% (or 67 points) at 8,877. The South Korean KOSPI was up 1.3% for the session, while the Indian market up 0.8%.
The Dollar Index was higher at 78.99 on a higher Euro, while the Australian Dollar last traded higher at 1.0713. Commodities prices traded generally lower.
For the session the benchmark crude NYMEX was down -1.1% (or -$US1.03) settle at $US96.58. Â Copper prices are seeking a support level as Copper was down -1.4% (or -5.3 cents) at $US3.7855. Â Gold was up 0.6% (or $US9.70) at $US1,759.Â
BHP – BHP Billiton has committed $US779 million to a port project that could increase its WA iron ore exports by 100 million tonnes each year.
BLD – Boral the building materials maker has sold its Indonesian business for $US135 million ($A127.87 million) and confirmed its previous expectations for its half-year profit.
ERA – Energy Resources Australia has posted a $153.6 million loss for 2011 and says production is still having problems with wet weather.
FXJ – Australia’s richest person Gina Rinehart has increased her stake in Fairfax by an estimated 10 percent, at a 10% premium.
LYC – Lynas, the rare earths miner, received a temporary license for its rare earths refinery in Malaysia and says it has a responsibility to the Malaysian community to operate a newly-approved plant in a safe manner.
PMP – PMP, the publisher and direct marketer, has cut its earnings guidance and implemented further restructuring due to poor trading conditions and weaker printing orders.
RIO – Rio Tinto has reported its 40-year-old aluminium smelter at Tiwai Point, near Bluff, had its biggest production year ever in 2011.
STO – Santos says its Wortel operation in Indonesia has produced its first gas, the fourth project in the company’s base business to begin output in the past eight months.
WES – Wesfarmers says Coles had its best ever Christmas sales in 2011, which contributed to a 7.3 percent rise in first half sales to $17.5 billion.
None
ASX – to open higher
US & UK/Europe – higher
Commodities Stock Index  up 0.8%
Gold Stocks Index up 1.3%
Oil Stocks Index up 0.4%Â
US ADRs – Broadly Higher
BHPÂ up 0.6%, Â RIOÂ up 1.5%; AWC up 0.4%
ANZÂ up 2.1% &Â NABÂ up 0.5%
NEM   down -1.9%, JHX up 2.4%, NWS  down -1.2%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
* US stock markets jumped overnight and are approaching multi-year highs, as traders cheered improving worldwide manufacturing reports.
* European stock markets jumped higher overnight, as financials and energy stocks pushed indices higher on the back of improving manufacturing data.Â
* Asian stock markets ended mixed yesterday, but are likely to play catch-up today.
* Commodities prices traded mixed, as Gold prices rose higher to around $US1,744. Crude-oil closed down around $US97.
The SPI Futures is trading above the key pivot level of 4180, ending up 1.3% (or 55 points) at 4,248. The key levels for our index today are 4200 to 4280.
Yesterday Aussie shares sold down, led by the miners and financials, as investors waited for news on European debt talks, and stocks traded cautiously ahead of the Chinese PMI figures, which beat expectations.
Aussie shares are expected to jump today and traders will be looking to play catch up with positive leads from the US and European markets.
See below for ASX listed companies in the news today.
* Dec    Building Approvals
* Dec    International Trade in Goods & Services
US stock markets jumped overnight, approaching multi-year highs, as traders cheered improving worldwide manufacturing reports. Â
The three major indices continued to rise after posting their best January performance in 15 years. All 10 S&P 500 sectors traded in the green, with the gains led by financial and industrial stocks, while technology stocks shook off the disappointing results from Amazon. Â
Economic news buoyed sentiment after weekly jobs data showed US employment ahead of the monthly Non-farms employment report due out Friday. Â Manufacturing figures improved globally, and a reading on US manufacturing came in at 54.1 for January (up from 53.1).
Facebook has announced its IPO to the tune of $5 billion through Morgan Stanley; the company made $1 billion in profit with revenue of $3.7 billion last year.
All ten company groups that make up the S&P index traded mixed with Materials up 1.0%, Energy up 0.4%, Financials up 1.6%, Industrials up 1.1%, Technology up 1.0%, while Consumer Staples were up 0.4%.
The Dow Jones closed up 1.0% (or 125 points) at 12,757, the S&P 500 index up 1.2% (or 16 points) at 1,327, the Nasdaq ended up 1.2% (or 34 points) at 2,848 and the smaller cap Russell 2000 was up 1.9%.
European stock markets jumped higher overnight, as financials and energy stocks pushed indices higher on the back of improving manufacturing data.  The Stoxx 600 index closed at a six-month high, up 2%. Â
Investors cheered improving manufacturing data from China, Germany, the U.K. and the eurozone which came in slightly better than expected (but with the exception of London and China the figures were below the key 50 level which signifies expansion).
Financials performed well, with Italian banks surging after yields on 10-year Italian government bonds fell 22 basis points to 5.64%.  Growth-sensitive stocks performed well as commodities prices rose with gold, silver, copper and aluminium prices all higher, boosting the mining sector to solid gains.  The news on manufacturing figures sparked buying. Â
European shares continued higher after data showed that the ISM manufacturing index climbed to 54.1% in January. Â Additionally manufacturing data from Germany, the U.K. and the eurozone all boosted sentiment as the German PMIÂ rose to 51.0 in January (up from 48.4), while eurozone PMI rose to 48.8 in January (above estimates of 48.7), while in London the UK PMI hit an eight-month high of 52.1 in January (up from 49.7).
In London the FTSE 100 index closed up 1.9% (or 109 points) at 5,790, the German DAX was up 2.4% (or 158 points) at 6,616, while in France the CAC was  up 2.1% (or 69 points) at 3,368. Spain was up 2.2% and Italy ended up 2.7%.
Asian stock markets ended mixed yesterday, but are likely to play catch-up today. Â
In China the Shanghai Composite Index underperformed down over 1%, despite Chinese manufacturing activity figures coming in better-than-expected, as this raised concerns that the government may not need to immediately ease its monetary policy. The Chinese official Purchasing Managers Index (PMI) was reported at 50.5 in January, up from 50.3 in December (above expectations of a drop to 49.5). The 50 level that delineates expansion and contraction.
The news prompted traders to sell-down resource and property stocks which finished broadly lower.  Elsewhere Japan, South Korea and Hong Kong finished flat.
In China the SSE Composite was down -1.1% at 2,268, while in Hong Kong the Hang Seng Index was down -0.3% at 20,333 and in Japan the Nikkei 225 Index closed up 0.1% (or 7 points) at 8,809. The South Korean KOSPI was up 0.2% for the session, while the Indian market up 0.6%.
The Dollar Index was higher at 78.91 on a higher Euro, while the Australian Dollar last traded higher at 1.0711. Commodities prices traded generally higher.
For the session the benchmark crude NYMEX was down -1.2% (or -$US1.13) settle at $US97.35. Copper prices are seeking a support level as Copper was up 1.4% (or 5.1 cents) at $US3.8300. Â Gold was up 0.4% (or $US6.40) at $US1,744.
BLD – Boral, the building materials maker, has sold its Indonesian business for $US135 million ($A127.87 million) and confirmed its previous expectations for its half-year profit.
ERA – Energy Resources Australia has posted a $153.6 million loss for 2011 and says production is still having problems with wet weather.
FXJ – Australia’s richest person Gina Rinehart has increased her stake in Fairfax by an estimated 10 percent, at a 10% premium.
QAN – Qantas says it is in a strong financial position despite having its credit rating downgraded by Moody’s ratings agency.
STO – Santos says its Wortel operation in Indonesia has produced its first gas, the fourth project in the company’s base business to begin output in the past eight months.
WES – Wesfarmers says Coles had its best ever Christmas sales in 2011, which contributed to a 7.3 percent rise in first half sales to $17.5 billion.
ASX – to open higher
US & UK/Europe – higher
Commodities Stock Index  up 0.6%
Gold Stocks Index up 0.1%
Oil Stocks Index up 0.3%Â
US ADRs – Broadly Higher
BHPÂ up 1.3%, Â RIOÂ up 2.0%; AWC up 0.7%
ANZÂ up 1.4% &Â NABÂ up 1.1%
NEM   down -0.6%, JHX up 0.5%, NWS  up 1.9%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
* US stock markets have recovered from an early sell-off ending modestly lower for the session.
* European stock markets fell overnight as investors grew increasingly concerned about the lack of a Greek debt-restructuring deal.
* Asian markets fell yesterday as investors were cautious ahead of a key summit of European leaders later in the day and Chinese PMI out Wednesday.
* Commodities prices traded mostly lower, as Gold prices dropped to around $US1,730, while crude-oil closed up around $US99.
The SPI Futures is trading above the key pivot level of 4180, ended down -0.2% (or -7 points) at 4,238. The key levels for our index today are 4180 to 4230.
Last week the Australian share market ended up for a fourth consecutive week, with shares up around 5.5 percent so far in 2012.
Yesterday Aussie shares fell, led down by the financials, as investors waited for news on Europe debt talks.
Aussie shares are expected to ease today and traders are should be looking to protect recent profits, after weaker leads again from the US and European markets.
See below for ASX listed companies in the news today.
*  Dec   Financial Aggregates, including Private Sector Credit�
*  Dec   NAB Business Survey�
*  Dec   International Reserves & Foreign Currency Liquidity.
US stock markets have recovered from an early sell-off ending modestly lower for the session. Traders are showing concern that the standoff between Greece and its private creditors is still not resolved, as well as an alarming surge in Portugal’s borrowing costs.
Financial companies led stocks lower as investors remain wary of the potential for Europe’s debt issues to spread causing contagion across the global financial system. Eight of 10 sectors on the S&P 500 finished in the red for the session, with the only exceptions being the telecommunication and technology sectors. Trading volumes were down as fund managers are looking to hold on to their January profits as the month end nears.
The ten company groups that make up the S&P index traded mixed with Materials down -0.2%, Financials down -0.9%, Energy down -0.5%, Industrials down -0.4%, Technology up 0.3%, while Consumer Staples were down -0.3%.
The Dow Jones closed down -0.1% (or -6 points) at 12,654, the S&P 500 index down -0.3% Â (or -3 points) at 1,313, the Nasdaq ended down -0.2% (or -5 points) at 2,811 and the smaller cap Russell 2000 was down -0.6%.
European stock markets fell overnight as investors grew increasingly concerned about the lack of a Greek debt-restructuring deal. The Stoxx Europe 600 Index closed down -1.1%.  All the key markets were down over -1% for the session.
Across the region the financials led the sell-down with the Stoxx Europe 600 Index Banking sector closing down -3.1%. Investors were worried due to Friday’s Fitch ratings agency downgrade of Italy, Spain, Belgium, Slovenia and Cyprus and cut its outlook in Ireland.Â
Investors are concerned over the Greek debt negotiation and are now shifting their attention to Portugal, which could be the next in line for a bailout after their borrowing costs surged with the 10-year government bond yield reaching euro-era highs, with the 10-year Portuguese government bond yield at 17.39%.
The meeting of the European Union leader’s summit is underway in Brussels. It aims to endorse a permanent bailout fund with a lending capacity of EUR500 billion, and to finish details of a “fiscal pact” aiming at budget deficits. Â There is some good news as all European Union countries, except Britain and the Czech Republic, have agreed to sign a new treaty designed to stop overspending in the eurozone and put an end to the bloc’s disastrous debt crisis, while also pledging to stimulate growth across the region. Â The eurozone’s 17 nations hope that the tighter rules will convince investors that all countries will get their debts under control and restore confidence in their joint currency.
In London the FTSE 100 index closed down -1.1% (or -62 points) at 5672, the German DAX was down -1.1% (or -67 points) at 6,444 while in France the CAC was down -1.6% (or -53 points) at 3,265. Spain was down -1.6% and Italy ended down -1.2%.
Asian stock markets fell yesterday as investors were cautious ahead of a key summit of European leaders later in the day and Chinese PMI out Wednesday. Japanese stocks closed lower.
Chinese traders returned in a sombre mood and sold down stocks, due to disappointment over a lack of policy easing from the government. The Hong Kong market was also lower, as shares of developers and Chinese banks fell sharply on fears over the property sector’s outlook in the absence of any policy easing. The Taiwanese market bucked the trend, rising sharply as the market returned after a long Lunar New Year holiday.Â
In China the SSE Composite closed down -1.5% at 2,285, while in Hong Kong the Hang Seng Index was up -1.7% at 20,160 and in Japan the Nikkei 225 Index closed down -0.5% (or -48 points) at 8,793, while the Indian market was down 2.2%.
The Dollar Index was lower at 78.36 on a higher Euro, while the Australian Dollar last traded higher at 1.0667. Commodities prices traded lower.
For the session the benchmark crude NYMEX for January delivery was down -0.6% (or -$US0.63) to settle at $US98.93. Â Copper prices are seeking a support level as Copper for January delivery was down -1.6% (or -6.4 cents) at $US3.8263. Â January gold was down -0.1% (or -$US1.70) at $US1,730.
GGP – Golden Gate Petroleum, with a market cap of just $44 million, says it no longer needs to raise further capital and is forecasting Golden Gate will produce close to 1000 barrels of oil a day, in the next 9 months.
OST – OneSteel will receive $64 million to help it prepare for the introduction of the federal government’s carbon tax in July.
ROC – ROC Oil lifted production in the December quarter, but for the year it was down. Â 4Q production increased by 7 percent on the previous quarter to 708,675 barrels of crude oil, bringing full-year total to 2.73 million barrels of oil equivalent, compared to 3.1 mmboe in 2010.
WES – Wesfarmers to release second-quarter sales figures on Thursday.
WOW – Woolworths, Australia’s biggest supermarket chain, releases second-quarter sales figures today. Â Woolworths has appointed Christine Cross, David Mackay and Michael Ullmer as non-executive directors.
None
ASX – to open lower
US & UK/Europe – lower
Commodities Stock Index  down -0.5%
Gold Stocks Index down -1.3%
Oil Stocks Index down -0.1%Â
US ADRs – Broadly Lower
BHPÂ down -0.9% &Â RIOÂ down -0.2%; AWC down -1.1%
ANZÂ down -0.9% &Â NABÂ down -1.4%
NEM   down -0.5%, JHX down -2.3%, NWS up 0.3%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
* US stock markets ended mixed on Friday, after the GDP figures disappointed.
* European stock markets eased back from 5-month highs Friday, as the Stoxx Europe 600 fell -1%.
* Many Asian stock markets were closed for the Lunar New Year holidays.
* Commodities prices traded lower, as Gold prices were around $US1,738. Crude-oil closed around $US98.
The SPI Futures is trading below the key pivot level of 4180, ending up 0.6% (or 26 points) at 4,148. The key levels for our index this week are 4080 to 4250.
Aussie shares are expected to ease and traders are expected to join their overseas counterparts in protecting their profits today, after negative leads from the US and European markets.
See below for ASX listed companies in the news today.
US stock markets ended mixed on Friday, after the GDP figures disappointed. The Dow Jones Industrial Average ended up 3.6% YTD, while for the week, the S&P and the Nasdaq ended in positive territory for the fourth week in a row. The materials and health care sectors led the S&P, while utilities and consumer staples lagged.
In economic news US gross domestic product (GDP), the value of all goods and services produced, expanded at an annual rate of 2.8% from the final quater of 2011, which was below expectations. However the GDP figures are confirming the US economy expanded at the fastest pace since the second quarter of 2010. US growth is expected to slow in the first half of 2012 which tempered trader enthusiasm.
In corporate news, Facebook could file as early as next week for an initial public offering that would raise $10 billion and value the company at $75 billion to $100 billion. The Nasdaq CEO said that this market has the biggest number of IPO applications in a decade, which is a positive for investor sentiment.
This week earnings continue, and the monthly jobs figures will be released Friday night.
All ten company groups that make up the S&P index traded mixed with Materials up 0.1%, Financials down -0.4%, Energy down -0.2%, Industrials down -0.1%, Technology was flat, while Consumer Staples were down -0.7%.
European stock markets eased back from 5-month highs Friday, as the Stoxx Europe 600 fell -1%. Stocks eased as the Fitch Ratings Agency downgraded the sovereign credit ratings for Spain, Belgium and Italy. Greece is still said to be close to closing its debt restructuring deal with private creditors.
The German market was up again for the week and is up 7.6% YTD, and in France the CAC-40 has risen 5.2% YTD, while in London YTD the FTSE 100 is up 2.9%.
This week investors will be watching for the outcome of the EU summit meeting to be held next week.
In London the FTSE 100 index closed down -1.1% (or -62 points) at 5733, the German DAX was up 1.8% (or 118 points) at 6,539 while in France the CAC was down -1.3% (or -1.3 points) at 3,319. Spain was down -0.7% and Italy ended down -1.0%.
Many Asian stock markets were closed for the Lunar New Year holidays. Across the region the resource sector led markets higher as buyers as trading resumed after a break.
Investors cheered the Federal Reserve announcement that benchmark US interest rates will likely remain at ultra-low levels until 2014, and commodities prices rose on the news. Much of the buying in the region was led by resource and banking stocks.  However traders remain cautious over the Greek debt restructuring talks and mixed earnings reports.
In Japan shares were hurt by poor earnings reports from Nintendo and NEC, while Hong Kong stocks rose as the Hang Seng Index was up for a sixth straight day, with gains led by banking and telecommunication shares.
In China the SSE Composite was closed at 2,319, while in Hong Kong the Hang Seng Index was up 0.3% at 20,501 and in Japan the Nikkei 225 Index closed down -0.1% (or -8 points) at 8,841. The South Korean KOSPI was up 0.4% for the session, while the Indian market up 0.5%.
The Dollar Index was lower at 78.36 on a higher Euro, while the Australian Dollar last traded higher at 1.0667. Commodities prices traded lower.
For the session the benchmark crude NYMEX for January delivery was down -0.1% (or -$US0.14) to settle at $US99.76.  Copper prices are seeking a support level as Copper for January delivery was down -0.3% (or -1.3 cents) at $US3.8855. January gold was up 0.3% (or $US5.50) at $US1,738.
AGO – Atlas Iron managing director David Flanagan said Atlas is not for sale, but delivered downgraded production and export results for the December quarter and has cut its production targets for the financial year, because of the impact of Tropical Cyclone Heidi.
ALS – Alesco Corporation, the building products distributor has more than tripled its first half profit but says trading conditions are tough.
CPA – Commonwealth Property Office Fund expects its first-half profit to grow and has boosted its forecasts for distributions.
EPW – ERM Power has received the go-ahead to build a $500 million gas-fired power station west of Brisbane.
LYC – Lynas Corp is back, surging another 5% after reporting it has secured enough funds ($US225 million in unsecured convertible bonds) to complete construction and start-up of its delayed rare earths processing plant in Malaysia.
RMD -Â Resmed the US-based sleep disorder specialist reported a better than expected profit result in the quarter of last year as profit dropped modestly for the first half of this financial year (July to December 2011) to US$113.4 million.
TOL – Toll Holdings is facing union action in Los Angeles as truck drivers who accuse their Australian employer of treating them like “second-class citizens”, have announced plans to hold union elections at their workplace.
WHC – Whitehaven Coal has increased production by two per cent in the December quarter, but sales have fallen.
WPL – Woodside Petroleum denies it is looking to sell a major part of its stake in the proposed Browse basin liquified natural gas (LNG) project.
ASX – to open flat
US & UK/Europe – lower
Commodities Stock Index  up 0.5%
Gold Stocks Index up 1.9%
Oil Stocks Index down -0.8%Â
US ADRs – Broadly Lower
BHPÂ down -0.3% &Â RIOÂ down -1.0%; AWC up 0.4%
ANZÂ down -0.2% &Â NABÂ down -1.1%
NEM  up 1.8%, JHX down -1.4%, NWS up 0.1%
By Michael Hevern
Head of Research
For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.
Written on 30 January, 7:15am
* US stock markets drift higher to levels not seen since mid last year.
* European stock markets climbed to 5-month highs overnight, as the US Federal Reserve said it would keep U.S. interest rates low until at least 2014.
* Many Asian stock markets are closed for the Lunar New Year holidays.
* Commodities prices traded mostly lower, as Gold prices lower to around $US1,668 and while crude-oil closed up around $US100.
The SPI Futures is trading above the key pivot level of 4180, ended down -0.3% (or -11 points) at 4,240. The key levels for our index today are 4150 to 4230.
The Australian share market continued to melt-up Wednesday, led by strong moves in the financials sector. Investors remain optimistic, even though the negotiations over the Greek bailout have not been concluded and the US Fed reserve meet tonight. Locally the case for a rate cut when the RBA board meets on 7th February, has been boosted by today’s CPI reading and some internet jobs figures. The ABS reported that inflation was unchanged for the December quarter, following a 0.6 per cent rise in the third quarter of 2011. Seasonally adjusted CPI rose 0.2 per cent in the December quarter, and was up 3.0 per cent in the 12 months to December. This is the reading is the lowest since the final three months of 2008 at the height of the GFC. In other news the Westpac-Melbourne Institute Leading Indexes of Economic Activity forecast a modestly lower pace of economic activity in the next 3 to 9 months, as the index fell -0.2 percent in November, following a rise of 0.1 percent in October. The Department of Education, Employment and Workplace Relations internet vacancy index fell by 3 per cent in December, was 84.1 points, 8.7 percent, lower in seasonally adjusted terms than in December 2010. Shares in the All Ordinaries (XAO) traded higher today, closing up 1.0% at 4329, as the S&P/ASX 200 (XJO) closed up 1.1% at 4271.
Aussie shares are expected to play catch up today and traders are expected to continue to look for bargains today, after positive leads from the US and European markets.�
See below for ASX listed companies in the news today.
Many Asian stock markets are closed for the Lunar New Year holidays.Â
Hong Kong stocks jumped though, as traders returned from a long Lunar New Year holiday to celebrate the Federal Reserve’s projection of ultra-low interest rates through late 2014. Japanese shares eased from a near three-month high as investors did some profit-taking, paricularly in the exporters, while in South Korea the Kospi eased on weaker-than-expected economic growth data.
In China the SSE Composite was closed at 2,319, while in Hong Kong the Hang Seng Index was up 1.6% at 20,439 and in Japan the Nikkei 225 Index closed down -0.4% (or -34 points) at 8,850, South Korean KOSPI was up 0.2% for the session, while the Indian market up 0.5%.
Commodities
For the session the Benchmark crude NYMEX for January delivery was up 0.3% (or $US0.39) settle at $US99.79.  Copper prices are seeking a support level as Copper for January delivery was up 1.5% (or 6 cents) at $US3.8805. January gold was dowup 1.6% (or $US26.50) at $US1,729.
ASX News Today
Â
Commodities Stock Index  down -0.6%
Gold Stocks Index up 0.7%
Oil Stocks Index down -1.6%Â
US ADRs – Broadly Lower!!…Â
By Michael Hevern
Head of Research
