Online Stockmarket Trading Update

*  US stock markets finished mostly lower overnight, after disappointing eurozone manufacturing and employment data and weaker-than-expected weekly jobs report ahead of the Non-Farm monthly employment report due out on Friday.
*  European stock markets declined overnight, as the falls were led by the financials.
*  Asian stock markets ended higher yesterday, as traders played catchup with the US market.
*  Commodities prices were lower, with Gold prices traded around $US1,653 while crude-oil closed around $US105.

The Australian market remained at its highest level since last July, and shares may ease today after many stock markets returned from their May Day holiday overseas.  Markets sold-down on their return from holiday in the European markets and in the US as traders reacted to disappointing employment and manufacturing data.

The SPI Futures is trading above the key pivot level of 4360, ended up 0.1% (or 3 points) at 4,432. The key levels for our index today are 4380 to 4460.

See below for ASX listed companies in the news today.

Economics News Today
*  Apr     Australian PSI
*  Apr     VFACTS vehicle sales.

US Markets

US stock markets finished mostly lower overnight, after disappointing eurozone manufacturing and employment data and weaker-than-expected weekly jobs report ahead of the Non-Farm monthly employment report due out on Friday.  

The Dow Jones Industrial backed of 4-year highs, while in the broader markets the S&P500 and the Nasdaq eased -0.3%. The energy and financial sectors led the falls, but the consumer staples and consumer discretionary sectors did provide some support limiting the overall index declines.  

Trader mood was dampened by weaker US economic data and disappointing eurozone readings on manufacturing and employment data, as European umployment hit a 15 year high.  Selling came after a report on private-sector job growth in April showed an increase of just 119,000 jobs, substantially below the expected 175,000 new jobs and sharply lower than March’s downwardly revised gain of 201,000 jobs.  Also factory orders in March declined 1.5% from February, in line with expectations.  The energy sector turned around after Chesapeake Energy plunged -15% after reporting its first-quarter earnings and revenue missed expectations. 

All ten company groups that make up the S&P index traded mixed, with the Materials down -0.5% , Energy sector was down -1.6%, Financials sector down -0.8%,  Industrials sector was up 0.1%, Technology was up 0.1%,  while Consumer Staples were up 0.5%.

The Dow Jones closed down -0.1% (or -10 points) at 13,269, the S&P 500 index down -0.3% (or -3 points) at 1,402, the Nasdaq ended up 0.3% (or 9 points) at 3,059  and the smaller cap Russell 2000 was up 0.3%.

European Markets

European stock markets declined overnight, as the falls were led by the financials. The Stoxx Europe 600 index ended down 0.4%.  

Financials arcoss the region led the falls, as the key markets in London and Germany fell around -1.0%, but in France the market ended higher. Traders in France where buoyed after sentiment recieved a boost from the country’s PMI for April, which recorded a sligt rise for the month.  

Markets in the PIIGS economies where weak down another -2% in Spain, Italy and Greece, as these economies continue to battle their debt crisis issues.  Banking stocks in both Spain and Italy posted large losses. Also dampening the mood was data that the seasonally adjusted unemployment rate in the 17-nation eurozone rose to 10.9% in March, a euro-era high, while eurozone manufacturing activity shrank in April at a faster pace than previously estimated.  In Italy the purchasing managers index (PMI) dropped 43.8, highlighting concerns about the country’s manufacturing sector, while Spain and Greece saw their downturns accelerating. Europe continues to put a brake on any global bullishness, as growth slow and debt rises. 

In London the FTSE 100 index last closed down -0.9% (or -54  points) at  5,758, the German DAX was closed down -0.8% (or -54  points) at 6,711 while in France the CAC was closed up 0.4% at 3,226, Spain closed down -2.6% and Italy closed down -2.6%.

Asian Markets

In China the SSE Composite closed up 1.8% (or 42 points)   at 2,438, while in Hong Kong the Hang Seng Index closed  up 1.0% (or 214 points) at 21,309 and in Japan the Nikkei 225 Index  closed up 0.3% (or 29 points)  at 9,380, South Korean KOSPI was up 1.0% for the session, while the Indian market closed down -0.1%. 

Commodities

The Dollar Index was higher at 78.9 on a lower Euro, while the Australian Dollar last traded lower at 1.0333. Commodities prices traded generally lower.

ANZ – ANZ Bank has lifted its 1H12 profit by 10 percent to $2.9 billion, but warns margins in its Australian business are declining.

APN – APN News and Media says its NZ media properties are under strategic review and has flagged a fall in 1H12 net profit.

AQA – Aquila Resources says the $430 million sale of its half interest in the Isaac Plains coal mine in Queensland is a step closer to being officially sold, following Foreign Investment Review Board’s (FIRB) approval.

AWC – Alumina says pricing and demand will remain subdued in 2012, due to the high Australian dollar continues to put the company under pressure.

BOQ –  Bank of Queensland has cut its variable home loan rates by 0.35 percent, less than the RBA 0.5 percent cut.

BXB – Brambles says it is on track to meet its full year profit target after unveiling a 33 percent rise in its latest sales results.

NAB – National Australia Bank has cut its variable home loan rates by 0.32 percent, less than the RBA 0.5 percent cut.

NWS – News Corporation investors have ignored the UK parliamentary inquiry into the phone hacking scandal, which found chairman and chief executive Rupert Murdoch was “not a fit person” to run a major international company.

ORG – Origin Energy has struck a deal to supply gas to a joint venture of major energy suppliers.  The deal is a major commercial boost for Origin, which produced 30.9 PJe of gas in the three months to March 31, and 135 PJe in the year to 30 June 2011.

SGT – Singtel the Optus telco giant has slashed 750 jobs as part of a restructure.
Corporate News

 

Market Summary 

ASX – to open lower
US & UK/Europe – lower

Commodities Stock Index down -1.3%
Gold Stocks Index down -1.5%
Oil Stocks Index  down -1.0% 

US ADRs – Broadly Higher!!… 

BHP down -0.7%, RIO down -2.0%; AWC down -0.2%

By Michael Hevern

*  US stock markets continued to rebound overnight, as the earnings season continues to be robust and the ISM manufacturing data impressed.
*  Many European stock markets were closed.
*  Asian stock markets ended mixed yesterday, as Chinese PMI manufacturing data came in better-than-expected and the RBA surprised cutting rates by 50 basis points.
*  Commodities prices were higher, with Gold prices traded around $US1,662 while crude-oil closed around $US106.

The Australian market closed at its highest level since last July, and shares are expected to hold on to recent gains today on the back of the RBA decision, and after many stock markets were closed for May Day overseas.  Markets that were open jumped higher from the open in the European markets and in the US as traders reacted to the Chinese PMI figures which confirmed continued expension for a fifth straight month. In Australia the RBA surprised economists by cutting rates by 50 basis points, to 3.75% cash rate, citing concerns that the banks were not going to pass on the full cut to their customers because of high funding costs from overseas.

The SPI Futures is trading above the key pivot level of 4360, ended up 0.5% (or 22 points) at 4,439. The key levels for our index today are 4380 to 4460.

See below for ASX listed companies in the news today.

US Markets

All ten company groups that make up the S&P index traded higher, with the Materials up 0.6% , Energy sector was up  1.4%, Financials sector up 1.0%,  Industrials sector was up 0.3%, Technology was up 0.3%,  while Consumer Staples were up 0.7%.

The Dow Jones closed up 0.5% (or 65 points) at 13,279, the S&P 500 index up 0.6% (or 8 points) at 1,406, the Nasdaq ended up 0.1% (or 4 points) at 3,050  and the smaller cap Russell 2000 was down -0.1%.

European Markets

Asian Markets

In China the SSE Composite last closed  at 2,396, while in Hong Kong the Hang Seng Index last closed  at 21,094 and in Japan the Nikkei 225 Index  was closed down -0.3% (or -170 points)  at 9,350, South Korean KOSPI was up 0.3% for the session, while the Indian market closed up 0.8%.

Commodities

The Dollar Index was lower at 78.77 on a higher Euro, while the Australian Dollar last traded lower at 1.0335. Commodities prices traded generally higher.

ALS – Alesco has had a bid from the DuluxGroup the paint manufacturer who have offered $188.4 million for a complete takeover of garage door and cabinet maker.

DOW – Downer EDI plans to merge its NZ and Australian and infrastructure businesses into one company called Downer Infrastructure.

FUN – Funtastic the toy distributor expects to return to profitability in fiscal 2012 due to improved margins and cost cutting.

MGR – Mirvac Group the property developer and manager has reaffirmed its full year financial guidance as market conditions remain in line with its expectations.

QAN – Qantas will cut around 400 jobs at Qantas’ Tullamarine heavy maintenance base in Victoria.

SGP – Stockland Group the global property developer has reaffirmed its recent earnings guidance for the 2012 financial year.

WPL – Woodside Petroleum has sealed a $2 billion deal to sell part of its stake in the proposed Browse LNG Development to Japan Australia LNG.

WTF – Wotif.com the online travel company, said it expects its full year profit to grow by up to 15 percent.
Corporate News

 

Market Summary  

ASX – to open higher
US & UK/Europe – higher

Commodities Stock Index up 1.6%
Gold Stocks Index up 0.4%
Oil Stocks Index  up 1.0% 

US ADRs – Broadly Higher!!…  

BHP up 1.6%, RIO up 1.6%; AWC up 0.4%

*  US stock markets continued to rebound overnight, as the earnings season continues to be robust and “Bernanke Put” remains in play.
*  European stock markets eased to finish off April, as concerns over the Spanish banking system prevailed, with a move by the S&P to downgrade Spanish banks casting a shadow over the whole eurozone financial system.
*  Asian stock markets drifted higher on the last day of April.  The Japanese and mainland Chinese markets were closed for a public holiday.
*  Commodities prices were higher, with Gold prices traded around $US1,654, while crude-oil closed around $US104.

The Australian market closed at its highest level since last July, but shares are expected to ease today ahead of the RBA decision, and after stocks eased overseas.  Markets were weaker from the open in the European markets and in the US as traders took profits at the end of the month.

The SPI Futures is trading above the key pivot level of 4320, ended down -0.1% (or -3 points) at 4,394. The key levels for our index today are 4350 to 4420.

See below for ASX listed companies in the news today.

Economics News Today
*  Apr     Australian PMI
*  Q1      House Price Indexes: Eight Capital Cities
*  May    RBA Australian cash rate decision
*  Apr     Commodity Price Index.
* Chinese Manufacturing  Report

US Markets

US markets ease, but they still generate at multi-month gains. 

The Dow Jones held on to its monthly winning streak is now the longest in five years, for for 7-consecutive months.  In the braoder markets the S&P500 posted its first monthly retreat since November.  The tech-heavy Nasdaq Composite and posted its first monthly retreat since December, but is still outperforming.  Traders were cautious as economic concerns prevail at home and abroad.  

In economic news the Institute for Supply Management (ISM) Chicago business barometer fell to 56.2 in April (down from 62.2), hitting a 29-month low and below analysts expectations, while the Federal Reserve Bank of Dallas Texas manufacturing production index fell to 5.6 this month from 11.1 in March and the Dallas Fed’s reading on April business activity swung to a -3.4 from March’s 10.8 score, indicating that the firms that reported a decrease in activity outnumber those reporting an increase.

The news from Spain that the Spanish economy contracted for the second consecutive quarter also damped the mood. However on a positive note the Commerce Department reported the US personal spending slowed in March, rising 0.3%, this reading fell just below of the 0.4% growth forecast by economists and there was an upwardly revised February increase of 0.9%, the biggest gain in over two and a half years.   For the month The Dow Jones rose 0.1%, while the S&P500 fell -1.1% and the Nasdaq fell -1.5%.

 All ten company groups that make up the S&P index traded lower except for Energy, with the Materials down -0.7% , Energy sector was up  0.6%, Financials sector down -0.5%,  Industrials sector was down -0.9%, Technology was down -0.7%,  while Consumer Staples were down -0.6%.

The Dow Jones closed down -0.1% (or -11 points) at 13,213, the S&P 500 index down -0.4% (or -5 points) at 1,398, the Nasdaq ended down -0.7% (or -23 points) at 3,046  and the smaller cap Russell 2000 was down -1.1%.

European Markets

European stock markets eased to finish off April, as concerns over the Spanish banking system prevailed, with a move by the S&P to downgrade Spanish banks casting a shadow over the whole eurozone financial system.  The Stoxx Europe 600 index fell 0.7%, recording a loss of -2.3% for April.

Across the region the financials led the falls, but eurozone stocks extended losses in afternoon session after US manufacturing data disappointed.  The focus was on Spain as data showed that the economy contracted -0.3% in the first quarter from the fourth, and 0.4% on annual basis and the Standard & Poor’s Rating Agency downgraded 11 Spanish banks, resulting in some that are now sub-investment grade, and 5 other banks have had their outlook lowered.  All this news is making traders become more convinced that Spain will require some form of international aid near-term.

The Spanish market fell -1.9% and has plunged -12.4% during the month and is down more than 18% for the year.   For the month the London market fell -0.6% and the German market closed -3.2%.

Asian Markets

Commodities

The Dollar Index was lower at 78.77 on a higher Euro, while the Australian Dollar last traded lower at 1.0413. Commodities prices traded generally higher.

BHP – BHP Billiton has paid Archer Exploration $8 million to buy out its five tenements near its massive Olympic Dam mine.

BTT – BT Investment Management says first half profit dropped 24 percent due to weaker equity markets and the cost of a recent acquisition.

FMG – As the MRRT Tax looms, Fortescue boss Andrew Forrest accuses Treasurer Wayne Swan of misleading taxpayers about the amount of revenue the federal government will get from its mining tax.

FNP – Freedom Foods’ business unit Pactum Australia will build a UHT processing plant in southeast Australia to meet increased domestic and export demand.

NAB – National Australia Bank will restructure its loss making business in the UK after it contributed to a 15.6 percent fall in the group’s first half profit.

ORI – Orica says a shipload of potentially explosive chemicals sitting off  Newcastle was given the all-clear by a federal agency.

SPT – Spotless the industrial services company has agreed to a full take-over by private equity firm Pacific Equity Partners (PEP) for a total cash consideration of $2.71 per share.

UGL – UGL and CH2M Hill have won a $550 million contract to build the combined cycle power plant for the Ichthys liquefied natural gas (LNG) project in the Northern Territory.

Corporate News

 

None

Market Summary 

ASX – to open lower
US & UK/Europe – lower

Commodities Stock Index down -0.2%
Gold Stocks Index down -0.7%
Oil Stocks Index  up 0.1%  

BHP up 0.1%, RIO down -1.6%; AWC down -1.9%

*  US stock markets have recorded their biggest weekly rise in the past six.
*  European markets traded broadly higher on Friday and closed higher for the week.
*  Asian stock markets traded mostly lower on Friday, after a downgrade of Spanish credit rating.
*  Commodities prices were higher, with Gold prices traded around $US1,663, while crude-oil closed around $US105.

Australian shares are expected to trade higher, and after stocks continued higher overseas.  Markets again jumped higher from the open in the European markets and in the US as traders chose to keep their “risk-on” focus.  The RBA meets on Tuesday and are expected to increase rates by 25 basis points.

The SPI Futures is trading above the key pivot level of 4320, ended up 0.6% (or 28 points) at 4,397. The key levels for our index this week are 4280 to 4450.

See below for ASX listed companies in the news today.

US Markets

US stock markets have recorded their biggest weekly rise in the past six.

The Dow Jones Industrial Index and the S&P500 index were up over 1.5% for the week, rising for the past 4-sessions to record their bigest weekly gains since mid-March.  The tech-heavy Nasdaq continues to outperform up  2.3% for the week, to record its largest weekly rise in 3-months. 

The Dow Jones is looking to record yet another month of gains, which would be its seventh straight monthly advance and its longest winning streak in 5-years.  The Consumer Discretionary , Industrails and the Materials sectors all led the gains for the session. 

Traders brushed off a downbeat 1Q economic growth report from the Commerce Department’s first reading on gross domestic product (GDP), a broad measure of all the goods and services produced in the economy, which came in lower than expected. 

In corporate news Amazon the online retailer surged 16%, after reporting 1Q revenue jumpimg 34% and Expedia soared 24% hitting an all-time high after the online travel agent recorded better-than-forecast 1Q adjusted earnings and revenue. 

Thompson Reuters has reported that 57% of the S&P500 companies have reported their 1Q results and of those 287 companies that have reported their earnings 73% have posted better-than-analysts forecast. This is a busy week for economic news with the ISM manufacturing PMI data (a leading indicator) and the monthly Non-Farm Employment report.

All ten company groups that make up the S&P index traded mixed, with the Materials up 0.5% , Energy sector was down -0.1%, Financials sector up 0.1%,  Industrials sector was up 0.6%, Technology was down -0.1%,  while Consumer Staples were up 1.3%.

The Dow Jones closed up 0.2% (or 24 points) at 13,228, the S&P 500 index up 0.2% (or 3 points) at 1,403, the Nasdaq ended up 0.6% (or 19 points) at 3,069  and the smaller cap Russell 2000 was up 0.9%.

European Markets

European markets traded broadly higher on Friday and closed higher for the week.  The Stoxx Europe 600 rose 0.8% to record its fifth advance in the past six sessions. 

Across the region eurozone markets have advanced for a second week, on the back of better-than-expected earnings and despite the politcal uncertainties in France and the Netherlands.  

For the week the Stoxx Europe 600 has risen 1.7%, however it is still down -4.9% from its 2012 high, back in March.  In the UK the economy has fallen into a double-dip recession, its first since the 1970s.  Over 100 of the Stoxx Europe 600 companies reported last week, with only 7% topping estimates, according to Bloomberg.

In London the FTSE 100 index last closed up 0.5% (or 28 points) at  5,777, the German DAX was last up 0.9% (or 61 points) at 6,801 while in France the CAC was last up 1.1% (or 37 points)  at 3,266, Spain was up 1.6% and Italy ended up 1.9%.  

Asian Markets

Asian stock markets traded mostly lower on Friday, after a downgrade of Spanish credit rating. 

Asian stocks have been under selling pressure for a second week due to the concerns over the eurozone debt issues and the BoJ disappointing investors. 

Across the region the slowing down of the Chinese economy and the eurozone concerns have outweighed the positive corporate reporting in the US.  In Japan the Nikkei Stock Index closed down -0.4% after the central bank (BoJ) said it would increase its asset-purchase program, but there are concerns over deflation within the economy. 

In China the Shanghai Composite has declined -0.4% for the week and the Hong Kong Hang Seng has fallen -1.3%, as tradrs have shown caution after recent data have shown that the Chinese maufacturing sector has contracted for a sixth straight month. 

In China the SSE Composite last closed down -0.3% (or -8 points) at  at 2,396, while in Hong Kong the Hang Seng Index last closed  down -0.3% (or -68 points) at 20,741 and in Japan the Nikkei 225 Index  was closed down -0.4 (or -41 points)  at 9,521, South Korean KOSPI was up 0.6% for the session, while the Indian market closed up 0.3%.

Commodities

The Dollar Index was lower at 78.71 on a higher Euro, while the Australian Dollar last traded lower at 1.0475. Commodities prices traded generally higher.

AGK – The competition watchdog will make its decision on AGL Energy’s bid to take full control of Australia’s largest brown coal power station in May.

AGO – Atlas Iron the WA miner says it remains on track to meet its full year production target of 5.5 to 5.7 million tonnes (Mt).

JBH – JBH Hi-Fi the home entertainment retailer expects its profit to fall in the current financial year as its margins are impacted by heavy discounting.

MQG – Macquarie Group says full year profit has fallen 24 percent as global economic uncertainty results in significantly lower levels of investment activity.

NWS – Newscorp is facing the British media regulator stepping up its probe into whether BSkyB, the pay-TV giant partly owned by Rupert Murdoch’s News Corp, is a “fit and proper” owner of a broadcasting licence.

PMP – PMP the printer, publisher and direct marketer has received a take-over offer worth up to $252 million.

TLS – Telstra, the AFL, and NRL have won an appeal in the Federal Court against an earlier ruling that allowed Optus customers to record and watch football matches on delay.

SPT – Spotless is in a trading halt pending an announcement about its takeover talks with a private equity firm.

STO  – The Queensland government says the development of a major LNG plant in Gladstone will lead to improved services and infrastructure for the city.

WES – Coles the supermarket giant has been fined $170,000 and ordered to pay legal costs after a worker fell through a ceiling at store in Sydney five years ago.
Corporate News

 

Henderson Group (HGG)

Market Summary 

ASX – to open higher
US & UK/Europe – higher

Commodities Stock Index up 0.1%
Gold Stocks Index up 1.7%
Oil Stocks Index  down -0.1% 

US ADRs – Broadly Higher!!… 

BHP up 0.8%, RIO up 1.0%; AWC up 1.5%
ANZ  up 0.2% & NAB up 0.1%
NEM up 0.6%, JHX up 1.7%, NWS down -0.2%

By Michael Hevern

See below for ASX listed companies in the news today. 

US Markets

All ten company groups that make up the S&P index traded generally higher, with the Materials down -0.1% , Energy sector was up 1.1%, Financials sector up 0.9%,  Industrials sector was up 0.6%, Technology was up 0.8%,  while Consumer Staples were up 0.9%.

The Dow Jones closed up 0.9% (or 113 points) at 13,204, the S&P 500 index up 0.7% (or 9 points) at 1,400, the Nasdaq ended up 0.7% (or 21 points) at 3,050  and the smaller cap Russell 2000 was up 0.8%.

European Markets

In London the FTSE 100 index last closed up 0.5% (or 29 points) at  5,749, the German DAX was last up 0.5% (or 35 points) at 6,740 while in France the CAC was last down -0.1% (or -4 points)  at 3,229, Spain was down -1.3% and Italy ended down -0.7%.  

Asian Markets

In China the SSE Composite last closed down -0.1% (or -2 points) at  at 2,404, while in Hong Kong the Hang Seng Index last closed  up 0.8% (or 163 points) at 20,809 and in Japan the Nikkei 225 Index  was closed flat (or 1 points)  at 9,562, South Korean KOSPI was down -0.1% for the session, while the Indian market closed down -0.1%. 

For the session the Benchmark crude NYMEX for April delivery was  down -0.5% (or -$US0.51) settled at $US104.04.  Copper prices are backing off key resistance level as Copper for April delivery was down -0.1% (or 0.3 cents) at $US3.7645. April gold was down -0.3% (or -$US5.10) at $US1,654.50.

 ASX News Today

Corporate News

None

Market Summary  ASX – to open higher
US & UK/Europe – higher

Commodities Stock Index up 0.3%
Gold Stocks Index up 0.5%
Oil Stocks Index  up 1.7% 

US ADRs – Broadly Higher!!…  

BHP up 0.3%, RIO down -0.3; AWC down -2.1%

*  US stock markets rebounded overnight, as the earnings season continues to be robust and accommodative comments from the Fed.
*  European stocks markets rose for a second session overnight, led by the banks.
*  Asian stock markets ended mixed yesterday as traders exhibited caution ahead of the US Federal Reserve’s policy-meeting.
*  Commodities prices were higher, with Gold prices traded around $US1,643, while crude-oil closed around $US104.

Australian shares are play catch-up today, after stocks traded higher overseas.  Markets jumped higher from the open in the European markets and in the US as traders chose “risk-on” after the Fed said it remains accommodative for the foreseeable future.Remember we have options expiry today which will likely add to the volatility.

The SPI Futures is trading above the key pivot level of 4250, ended up 0.4% (or 17  points) at 4,405. The key levels for our index this week are 4340 to 4450.

See below for ASX listed companies in the news today.

Economics News Today
*  Apr     Australian PSI
*  Apr     VFACTS vehicle sales.

US Markets

US stock markets rebounded overnight, as the earnings season continues to be robust and accommodative comments from the Fed.  

The three major indexes all traded higher, with the tech-heavy Nasdaq surging 2.3%, it biggest single -day gin for the year, after Apple’s earnings doubled and its shares jumped 9%, with its market capitalisation surging by nearly $US50 billion in the session.  All 10 S&P500 sectors traded higher led by Materials and Technology sectors.

Traders cheered the comments out of the Federal Reserve policy-setting committee which reaffirmed its commitment to keeping interest rates low at least through late 2014 and later the Fed Chairman Ben Bernanke said the Fed would not hesitate to support the economy with more easing if required, through the buying more long-term bonds as in Operation Twist which is scheduled to finish in June.  

In economic news, US durable goods orders dropped 4.2% in March from the previous month, far below expectations and excluding transportation, orders fell 1.1%.  Commodities rose on the back of a lower US dollar.

All ten company groups that make up the S&P index traded  higher, with the Materials up 2.1% , Energy sector was up 1.0%, Financials sector up 0.9%,  Industrials sector was up 0.2%, Technology was up 2.8%,  while Consumer Staples were up 1.7%.

The Dow Jones closed up 0.7% (or 89 points) at 13,090, the S&P 500 index up 1.4% (or 19 points) at 1,390, the Nasdaq ended up 2.3% (or 68 points) at 3,029 and the smaller cap Russell 2000 was down -1.5%.

European Markets

Asian Markets

NCM – Newcrest Mining has cut its forecasts for gold and copper production for 2012 after carrying out a major review of its operations.

NWS – In the UK, Rupert Murdoch has declared he had “never asked a prime minster for anything” as the UK inquiry into media ethics claimed its first political scalp.

OSH – Oil Search says it is reviewing bids from potential joint venture partners in its Papua New Guinea gas projects. 

PDN – Palidin the Africa-focused uranium miner has significantly strengthened its balance sheet after a convertible bond issue that raised $US274 million ($A266.50 million) from investors.

PMP – PMP the publisher and direct marketer, has slashed its full year earnings forecasts and ramped up its cost-cutting program amid challenging trading conditions.

QRN – Queensland’s freight rail network will be even less accountable on environmental issues if it is completely privatised, according to state Greens candidate Jo Bragg.

SDG – Sunland says the the Gold Coast upmarket five-star Palazzo Versace is up for sale.

SPT – Spotlees the take-over target is in a trading halt ahead of an expected announcement about its talks with potential suitor Pacific Equity Partners.

THG – Thakral Holdings (THG) says a $400 million takeover offer from private equity group Brookfield undervalues the Australian property company.

WES – Wesfarmers says Coles sales has risen almost 5 percent in the 3Q but tough trading conditions led to a -4.4 percent fall in Target sales.
Corporate News

OZ Minerals (OZL)            March 2012 Quarterly Report

 

Market Summary  

ASX – to open higher
US & UK/Europe – higher

Commodities Stock Index up 0.9%
Gold Stocks Index up 2.6%
Oil Stocks Index  up 0.3% 

US ADRs – Broadly Higher!!…  

BHP up 1.6%, RIO up 2.8%; AWC up 2.1%

*  US stock markets sold-down from the open, joining in on the global sell-off across world markets.
*  European stock markets fell overnight, as traders were unnerved by political uncertainty in France and the Netherlands.
*  Asian stock markets fell yesterday after Chinese data showed April manufacturing activity continued to contract. Marekts across the region finished lower.
*  Commodities prices were lower, with Gold prices traded around $US1,638, while crude-oil closed around $US103.

Australian shares are expected to sell-off today, after stocks were sold-down overseas.  Markets sold down from the open in the European markets and in the US as traders chose caution ahead of a number of central bank meetings and political uncertainty in the eurozone.  Watch out for Australian CPI due out today.

The SPI Futures is trading above the key pivot level of 4250, ending down -0.5% (or -21  points) at 4,337. The key levels for our index this week are 4280 to 4360.

See below for ASX listed companies in the news today.

Economics News Today

*  Q1 CPI Figures (est. 0.7%).

US Markets

US stock markets sold-down from the open, joining in on the global sell-off across world markets.

Traders took their cue from eurozone traders who sold-down stocks after data showed that business activity in the eurozone’s private sector contracted the most in five months in April and political uncertainty reigned in France and the Netherlands.

In the broader market the falls were led by the materials, industrials and consumer staples sectors, as all 10 S&P500 sectors finished in the red.

In corporate news Wal-Mart slumped -4.7%, for its biggest percentage drop since January 2009, after bribery allegations in Mexico, while Kellogg plunged -6.1% after the cereal and snacks maker lowered its full-year profit and sales outlook, and saying its 1Q results were weaker than expected. Netflix posted a 4Q net loss smaller than expected but its shares dropped -4%.

All ten company groups that make up the S&P index traded mixed, with Materials down -1.2%, Energy down -0.1%, Financials down -0.7%, Industrials down -1.1%, Technology down -0.8%, while Consumer Staples were down -1.1%.

The Dow Jones closed down -0.8% (or -102 points) at 12,927, the S&P 500 index was down -0.8% (or -12 points) at 1,367, the Nasdaq ended down -1.0% (or -30 points) at 2,970 and the smaller cap Russell 2000 was down -1.5%.

European Markets

European stock markets fell overnight, as traders were unnerved by political uncertainty in France and the Netherlands. The Stoxx Europe 600 index sank 2.3%, closing at its lowest level since mid-January.

The German DAX broke down to 4-month lows, after a preliminary reading of German manufacturing purchasing managers’ index (PMI) by Markit showed business activity contracted at the fastest level since 2009.

In France the market was weak, giving back all its gains for the year, as traders sold-off after the first-round presidential election resulted in Socialist candidate Francois Hollande advancing to the next round.  Hollande is seen as less committed to fiscal austerity than the incumbant President Nicolas Sarkozy. France will face an election on May 6.

Adding further to the selling pressure in the region, Dutch Prime Minister Mark Rutte and his cabinet resigned after budget talks disintegrated over the weekend, which may lead to a loss of the country’s AAA credit rating and pave the way for an early election.

Traders are monitoring the bond market as the cost of funding in the PIIGS economies remains an issue as in contrast the yield on 10-year German Bunds fell to a record low of 1.55% as investors headed for safety.

In London the FTSE 100 index last closed down -1.9% (or -158 points) at 5,665, the German DAX was last down -3.4% (or -227 points) at 6,523 while in France the CAC was last down -2.8% (or -90 points) at 3,098, Spain was down -2.8% and Italy ended down -3.8%.

Asian Markets

Asian stock markets fell yesterday after Chinese data showed April manufacturing activity continued to contract.

Markets across the region finished lower.  Falls were led by the financials, but resource stocks also eased during the session. The HSBC preliminary “flash” reading of China manufacturing Purchasing Managers’ Index (PMI) showed that activity improved in April from March, but remained below the threshold of 50, indicating a contraction.  Traders exercised caution ahead of some key central bank policy setting board meetings in the US and Japan, and the French election. 

In China the SSE Composite last closed down -0.8% (or -18 points) at 2,388, while in Hong Kong the Hang Seng Index last closed down -1.8% (or -386 points) at 20,624 and in Japan the Nikkei 225 Index was closed down -0.2% (or -19 points) at 9,542. The South Korean KOSPI was down -0.1% for the session, while the Indian market closed down -1.6%. 

Commodities

The Dollar Index was lower at 79.37 on a higher Euro, while the Australian Dollar last traded lower at 1.0314. Commodities prices traded generally lower.

For the session the benchmark crude NYMEX for April delivery was down -0.8% (or -$US0.80) to settle at $US103.07.  Copper prices are backing off key resistance levels as Copper for April delivery was down -2.3% (or 8 cents) at $US3.6230. April gold was down -0.2% (or -$US3.60) at $US1,638.50. 

ASX News Today

BKN – Bradken the mining equipment maker, has cut its full year profit guidance due to increased costs and lower sales in its rail division. Full year EBITDA was previously expected to grow by between 25 and 30 percent but is now expected to come in 10 percent higher at between $210 million and $220 million.

BLD – Boral the building materials producer, has cut its full year profit guidance by $22 million due to the impact of heavy rain and weak housing activity on its operations.

BRM – Brockman Resources says Hong Kong-listed Wah Nam International has extended its takeover offer for iron ore explorer Brockman Resources as it seeks to take control.

BTA –  Biota, the anti infective drug developer, is set to quit Australia and move to the U.S., where the company says investors better understand the biotechnology sector. Biota Holdings has agreed to take over US firm Nabi Biopharma to create a $250 million group in its move to the US.

COK – Cockatoo Coal shares plunged -7.3 per cent after South Korea’s SK Networks Co Ltd decided not to buy a 40 percent stake in Cockatoo, after an internal review.

PSH – Penrice Soda Holdings, the chemicals business, has forecast a full year loss due to weakening demand for the soda ash it produces.

SPT –  Spotless Group, the industrial services company, is still negotiating with its private equity suitor 5 months after a first bid was made by suitor Pacific Equity Partners, and there remains no guarantee a deal will be done.

TLS – Telstra CEO has nominated cloud computing, media asset management and expansion into Asia as potential growth areas that could flow from the introduction of the national broadband network (NBN).

WES – Coles third quarter sales could fall short of rival Woolworths as shelf prices continue to fall, amid heavy discounting and food deflation.

Corporate News

Steamships Trading (SST)

Market Summary 

ASX – to open lower
US & UK/Europe – lower

Commodities Stock Index down -1.5%
Gold Stocks Index down -1.7%
Oil Stocks Index  down -0.7% 

US ADRs – Broadly Lower
BHP down -2.0%, RIO down -4.2%; AWC down -1.6%
ANZ  down -0.8% & NAB down -1.4%
NEM down -2.0%, JHX down -1.9%, NWS down -0.4%

By Michael Hevern
Head of Research
 

*  US stock markets finished flat on Friday and have traded sideways over the week.
*  European stock markets edged higher on Friday, managing to end higher for the week.
*  Asian stock markets ended last week lower on Friday, but higher for the week.
*  Commodities prices were mixed, with Gold prices trading around $US1,642, while crude-oil closed around $US104. 

Australian shares are expected to have modest gains today, after stocks were mixed overseas.  Markets edged higher from their open and closed modestly higher for the week in the European markets and in the US.

The SPI Futures is trading above the key pivot level of 4250, ending up 0.2% (or 7 points) at 4,375. The key levels for our index this week are 4250 to 4440. 

See below for ASX listed companies in the news today.
 

US Markets

US stock markets finished flat on Friday and have traded sideways over the week, as traders weighed concerns over the eurozone debt crisis and data showing slowing economic data, against better-than-expected corporate earnings news.

The Dow Jones Industrials Index had its first higher weekly close in a month, after Microsoft and GE delivered better-than-expected results.  In the broader markets the S&P500 and the Nasdaq snapped 2-week losing streaks, with the Nasdaq clinging on to its 3000 level.  The US earnings season picks up this week.

The ten company groups that make up the S&P index traded mixed, with Materials down -0.1%, Energy down -0.2%, Financials down -0.5%, Industrials sector up 0.9%, Technology down -0.4%, while Consumer Staples were up 0.9%.

The Dow Jones closed up 0.5% (or 65 points) at 13,029, the S&P 500 index up 0.1% (or 2 points) at 1,377, the Nasdaq ended down -0.2% (or  -7 points) at 3,007 and the smaller cap Russell 2000 was up 0.6%.

European Markets

European stock markets edged higher on Friday, managing to end higher for the week. The Stoxx Europe 600 index closed up 0.5% and was up 1.7%, its first higher close in 5 weeks.

Across the region banks rallied after a surprise rise in a German business-climate index, energy stocks came under selling pressure after BP fell -1.2% as the US Department of Justice said late that an independent claims audit found the oil group owes an additional $64 million in payments related to the Deepwater Horizon oil spill in April 2010.  Mining stocks rose on the back of higher commodity prices. 

For the week Germany was up 2.5% and in London the FTSE closed up 2.1%. While in France the market ended up 0.2%, as French President Nicolas Sarkozy came second behind Francois Hollande in the first round of the presidential election.

In Friday’s session the FTSE 100 index closed up 0.5% (or 27 points) at  5,772, the German DAX was last up 1.2% (or 79 points) at 6,650 while in France the CAC was last up 0.5% (or 14 points)  at 3,188, Spain was up 1.9% and Italy ended up 0.8%.

Asian Markets

Asian stock markets ended last week lower mostly on lower Friday, but higher for the week.

Asian key markets are holding at or above their 50 day moving averages, with the Hong Kong market outperforming. The Chinese market has bounced strongly in recent weeks, as traders anticipate that the Chinese government will lean towards monetary easing in the near-term.

The main news of last week centred around the Chinese economic growth GDP data which slowed more-than-expected to 8.1% in the first quarter from the year-earlier period (below the 8.4% expected).  In China the Shanghai market rose to a one-month high, boosted by expectations of further policy easing and outperforming in the region after a senior government economist said Chinese economic growth may rebound in the third quarter of this year and that there is room to adjust the Chinese macroeconomic policy. The Financial sector strengthened on the  back of this news.

In China the SSE Composite last closed up 1.2% (or 28 points) at at 2,406, while in Hong Kong the Hang Seng Index last closed up 0.1% (or 15 points) at 21,010 and in Japan the Nikkei 225 Index was closed down -0.3% (or -32  points) at 9,561. The South Korean KOSPI was down -1.3% for the session, while the Indian market closed down -0.7%.

Commodities

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The Dollar Index was lower at 79.26 on a lower Euro, while the Australian Dollar last traded higher at 1.0362. Commodities prices traded generally flat.

For the session the benchmark crude NYMEX for April delivery was up 1.1% (or $US1.16) settling at $US103.88.  Copper prices are backing off a key resistance level as Copper for April delivery was down -0.3% (or 1.3 cents) at $US3.6835. April gold was up 0.1% (or $US1.50) at $US1,642. 

ASX News Today

BKN – Bradken, the mining equipment maker, has cut its full year profit guidance due to increased costs and lower sales in its rail division. Full year EBITDA was previously expected to grow by between 25 and 30 percent but were now expected to come in 10 percent higher at between $210 million and $220 million.

BLD – Boral the building materials producer, has cut its full year profit guidance by $22 million due to the impact of heavy rain and weak housing activity on its operations.

IIN – iiNet the internet service provider has welcomed a High Court decision to dismiss an appeal by the world’s largest film and television companies, saying it proves it never supported unauthorised downloading.

IPL – Incitec Pivot the fertiliser and explosives maker, has a new chairman – the former chairman of PriceWaterhouseCoopers (PWC) Paul Brasher.

LEI – Leighton Holdings subsidiary Thiess will undertake site preparation work at the Chevron-operated Wheatstone gas project in WA after winning a $450 million contract.

SYD – Airport traffic rises as Melbourne Airport had a 36 percent rise in the number of passengers with Chinese passports in March, while Sydney Airport had a 24 percent rise in Chinese passengers, while Aussie passenger numbers improved by 16 in March.

TLS – Communications Minister Stephen Conroy says the federal government’s decision to create the national broadband network (NBN) was taken to ensure Australia’s telecommunications system was “future-proofed” for up to 50 years.

WOW – Woolworths the food and liquor retailer has lifted its third quarter sales by 3.8 per cent, but says uncertainty caused by the carbon tax and interest rates makes it cautious about the coming months.

Corporate News

CPT Global Limited (CGO)

Market Summary 

ASX – to open higher
US & UK/Europe – higher

Commodities Stock Index up 0.1%
Gold Stocks Index down -1.1%
Oil Stocks Index  down -0.1% 

US ADRs – Broadly Mixed 

BHP up 0.6%, RIO down -0.9%; AWC down -1.6%
ANZ  up 1.5% & NAB up 0.7%
NEM down -1.2%, JHX up 3.2%, NWS up 0.5%

*  US stock markets fell for a second session, but corporate earnings are still improving.
*  European stock markets ended in lower again, on the back of rising concerns over the state of the eurozone debt crisis.
*  Asian stock markets ended mixed yesterday, as traders remained cautious over what is unfolding with eurozone debt, and are expected to ease again today.
*  Commodities prices were lower, with Gold prices traded around $US1,639, while crude-oil closed around $US102.

Australian shares are expected to ease again today, after stocks overseas saw more profit-taking.  Markets sold-down from the open and closed lower overnight in the European markets and in the US. 

The SPI Futures is trading above the key pivot level of 4250, ended down -0.1% (or -3  points) at 4,369. The key levels for our index today are 4320 to 4400. 

See below for ASX listed companies in the news today.

US Markets

US stock markets fell for a second session, as traders weighed concerns over the eurozone debt crisis and data showing slowing economic data, against better-than-expected corporate earnings news.  

The there major indexes closed down around -0.5%, with the Industrials and Technology sectors leading the falls. 

In economic news the  employment, housing and manufacturing data all showed slowing readings. Business conditions for the Mid-Atlantic manufacturers declined more than expected last month, while  sales of previously owned homes in the US fell in March for the second consecutive month.  There was positive news with the index of leading economic indicators in March posted the sixth straight increase, while the Federal Reserve said banks will have 2-years to bring their activities in line with the “Volcker rule” before regulators start enforcing it, which is expected to be seen positively by the banks and investors alike.

All ten company groups that make up the S&P index traded  lower, with the Materials down -0.4% , Energy sector was down -0.1%, Financials sector down -0.5%,  Industrials sector was down -1.1%, Technology was down -1.0%,  while Consumer Staples were down -0.4%.

The Dow Jones closed down -0.5% (or -67 points) at 12,964, the S&P 500 index down -0.6% (or -8 points) at 1,377, the Nasdaq ended down -0.8% (or  -24 points) at 3,007 and the smaller cap Russell 2000 was down -0.9%.

European Markets

European stock markets ended in lower again, on the back of rising concerns over the state of the eurozone debt crisis.  The Stoxx Europe 600 closed down 0.5%. 

Across the region the banking sector led the falls, particularly those with exposure to the PIIGS economies.

Traders continued to headed for the exits, as PIIGS countries must pay higher and higher funding costs to support their current debt levels.   In a Spanish debt auction  EUR2.54 billion of two and 10 year bonds were sold, just above the upper end of the range the government had targeted, but the yield on the 10-year bond came in higher than at the previous auction. Even Fance is starting to have to pay higher prices. The Spanish market slumped -2.4%, while in France the market dropped -2%, as rumours that the French credit rating could be lowered. 

In London the FTSE 100 index last closed down -0.1% (or -1 points) at  5,745, the German DAX was last down -0.9% (or -61 points) at 6,671 while in France the CAC was last down -1.8% (or -66 points)  at 3,174, Spain was down -2.4% and Italy ended down -2.0%.

Asian Markets

In China the SSE Composite last closed  flat at 2,379, while in Hong Kong the Hang Seng Index last closed up 1.0% (or 214  points) at 20,995 and in Japan the Nikkei 225 Index  was closed down -0.8% (or -79  points)  at 9,588, South Korean KOSPI was down -0.2% for the session, while the Indian market closed up 0.6%.

Commodities
The Dollar Index was higher at 79.56 on a lower Euro, while the Australian Dollar last traded lower at 1.0309. Commodities prices traded generally flat.

API – Australian Pharmaceutical Industries Ltd (API), the company behind the Priceline brand, has returned to the black with a 1H12 net profit of $18.3 million.

BHP – BHP has denied it is recruiting contract workers to replace retrenched union workers for a Queensland coal mine it closed.

CBA – Commonwealth Bank of Australia has detailed its growth plans for the years ahead, which include improved technology and customer service as the main focus.

CGF – Challenger the annuities provider and funds manager says funds have grown by 16 percent in the first three months of calendar 2012 due to stronger equity markets and rising sales.

CMJ – Telstra Corporation CEO David Thodey says the Telstra would look at increasing its stake in Foxtel should James Packer decide to sell out of the pay TV company.

FMG – Fortescue Metals Group the iron ore miner production in the first three months to calendar 2012 was impacted by cyclones in WA.

MTU – M2 Telecommunications has bought Primus Telecom for $192.4 million in cash, and will undertake a $83 million capital raising and the rights issue is trading under the code MTUR.

NWS – News Corp, the owner of the Fox television network, says it has suspended the voting rights of some stock owned by foreigners to comply with a US law that restricts the foreign ownership of broadcast licences.

SGP – Stockland the property developer, will cut executive bonuses after a review of its remuneration policies.

STO – Santos, the oil and gas producer, has maintained its full year production target after lifting its first quarter production and sales revenue.

TLS – Telstra has put on hold any decision to undertake a share buyback or lift dividends despite reaping billions of dollars from the national broadband network (NBN) deal.

WPL – Woodside Petroleum reported today its first quarter revenue was up 20 percent to $US1.2 billion, despite a 10 percent fall in production due to the impact of cyclones. 

UXC Limited (UXC)

Market Summary 

ASX – to open lower
US & UK/Europe – lower

Commodities Stock Index down -0.4%
Gold Stocks Index down -0.3%
Oil Stocks Index  down -0.6% 

US ADRs – Broadly Lower!!… 

*  US markets finished lower in a choppy session, as tech earnings disappointed and bond auctions in the eurozone blew out again.
*  European stock markets ended lower, led by the Spanish market as bond prices soared overnight.
*  Asian stock markets rallied yesterday, as traders took their cue from the positive news out of the eurozone and strong US corporate earnings, but expect a rebound today.
*  Commodities prices were lower, with Gold prices trading around $US1,640, while crude-oil closed around $US102.

Australian shares are expected to ease today, after stocks overseas saw short-term profit-taking.  Markets turned around to close lower overnight in Europe and in the US.  We are seeing rotation in the US market from the high flying tech stocks into the beaten down mining companies, so watch for this theme to play out in our market.

The SPI Futures is trading above the key pivot level of 4250, ending down -0.1% (or -6 points) at 4,355. The key levels for our index today are 4280 to 4370. Note it is index options expiry today.

See below for ASX listed companies in the news today.

US Markets

US markets finished lower in a choppy session, as tech earnings disappointed and bond auctions in the eurozone blew out again.

All ten company groups that make up the S&P index traded lower, with Materials down -0.3%, Energy down -0.2%, Financials down -0.7%, Industrials were down -0.4%, Technology was down -0.8%,  while Consumer Staples were down -0.1%.

The Dow Jones closed down -0.6% (or -83 points) at 13,032, the S&P 500 index down -0.4% (or -5 points) at 1,385, the Nasdaq ended down -0.4% (or  -11 points) at 3,031 and the smaller cap Russell 2000 was down -0.9%.

European Markets

European stock markets ended lower, led by the Spanish market as bond prices soared overnight. The Stoxx Europe 600 index fell -0.7%.  

In London the FTSE 100 index last closed down -0.4% (or -21 points) at 5,766, the German DAX was last down -1.0% (or -69 points) at 6,732 while in France the CAC was last down -1.6% (or -52 points)  at 3,240, Spain was down -4.0% and Italy ended down -2.4%.

Asian Markets

Asian stock markets rallied yesterday, as traders took their cue from the positive news out of the eurozone and strong US corporate earnings. Across the region it was a “risk-on” day as technology, mining and banking stocks led the charge.  In Japan the Nikkei Stock Average bounced 2.1%, with the exporters benefiting from a pullback in the yen.

In China the SSE Composite closed up 2.0% (or 46 points) at 2,380, while in Hong Kong the Hang Seng Index closed up 1.1% (or 218 points) at 20,780 and in Japan the Nikkei 225 Index closed up 2.1% (or 202 points) at 9,667. The South Korean KOSPI was up 1.0% for the session, while the Indian market closed up 0.2%.

Commodities

The Dollar Index was higher at 79.53 on a lower Euro, while the Australian Dollar last traded higher at 1.0345. Commodities prices traded generally lower.

For the session the benchmark crude NYMEX for April delivery was up 0.1% (or $US0.12) to settle at $US102.79.  Copper prices are backing off key resistance levels as Copper for April delivery was down -0.6% (or -2 cents) at $US3.6140. April gold was down -0.6% (or -$US10.20) at $US1,640.

ASX News Today

BHP – BHP Billiton’s latest production figures have met expectations but the miner warns that the effect of strikes at its Queensland coal mines may be substantial.

BOQ – Bank of Queensland has outlined its highly anticipated turnaround plan after posting a $90.6 million first half loss.

CDU – CuDeco the copper miner has received the go-ahead from the Queensland government to build a new ship loading and storage facility in Townsville.

CSS – Clean Seas Tuna says a breakout of enteritis among Yellowtail Kingfish is causing financial concerns.

FUN – Funtastic, the toy distributor, says kids electric scooters will take Australia by storm this Christmas following runaway success in the United States.

GRR – Grange Resources shares rose after the iron ore pellet producer reported an improvement in first quarter production from its Savage River mine in Tasmania.

MCR – Mincor Resources, the nickel miner, has reported a lift in 3Q output and says it is on track to meet its full year production targets.

PRU – Perseus Mining says it is on track to deliver on its gold production targets for the June quarter.

PSA – Petsec Energy has booked a slump in first quarter revenue after US production and gas prices fell.

RIO – Rio Tinto increased production of key commodities including iron ore and coal in the March quarter, but copper output fell by 18 percent due to lower grades at its US operations, according to the mining giant’s March quarter productivity results.

WDC – Westfield Group will sell off eight shopping centres in the US for $US1.15 billion so it can pay down debt and invest in developments like the new World Trade Centre.

WHC – The friendly takeover of Nathan Tinkler’s Aston Resources by Whitehaven Coal has received final approval.

None

Market Summary 

ASX – to open lower
US & UK/Europe – lower

Commodities Stock Index down -0.7%
Gold Stocks Index down -0.6%
Oil Stocks Index  down -0.8% 

US ADRs – Broadly Lower