* US stock markets resumed their five day rally, following upbeat corporate earnings reports.
* European stocks markets recovered from some profit taking, resuming its longest winning streak since June 2010, as Chinese manufacturing strengthened.
* Asian markets rose holding around 5-month highs, on the back of corporate earnings, which trumped the news of Chinese money tightening and banks recording a tripling of bad debts.
* Commodities prices higher, Gold prices are now trading around $US1,346, while crude-oil traded held around $US97.
The ASX market is looking to open higher today, with the 5400 level key near-term, as the ASX market remains at five and a half year highs. Markets recovered across Europe and the US markets edged even higher.
The SPI 200 futures were up 0.1% at 5,378, giving another positive lead for the ASX market today, as focus turns to earnings. The Australian dollar is flat and is now trading at US96.2c.
Crude Oil prices have cracked below the $US100 level this week, a positive for global equites going forward.
US stock markets resumed their five day rally, following upbeat corporate earnings reports.
The three benchmark indexes rose again towards all-time highs. The S&P500 finished just below all-time highs and is up 3.7% this month, only 1% off being on track for the best annual performance since 2003. Over 85 percent of the S&P500 stocks are now trading above their 50 day moving average, the most since 21 May, according to Bloomberg.
Six of the ten S&P500 sectors ended in the green, as the gains were dominated by the Consumer Discretionary sector up 1.0%. These gains were closely followed by the Materials, Energy and Industrials sectors all up over 0.5%. S&P500 Homebuilders also jumped 3.3% for a third straight session of gains.
In earnings of the over 215 S&P500 stocks that have reported 77% have beaten profit forecasts, while 20% have missed and 53% have beaten on sales, with earnings up 2.5% and sales up 2.2%. Over 45 of the S&P500 companies reported overnight, the busiest days for the season and in the main the reports were upbeat.
For the session Dow Jones closed up 0.6% at 15,509, the S&P500 closed up 0.3% at 1,752, and the NASDAQ closed up 0.6% at 3,928. Yields on 10-year Treasury notes edged higher closed at 2.52%.
European stocks markets recovered from some profit taking, resuming their longest winning streak since June 2010, as Chinese manufacturing strengthened.
The Europe Stoxx 600 rose 0.4% for the session, resuming its winning streak of nine straight sessions. Across the region the automobile makers rose the most in the 19 industry groups. The index is still up 3.2% for the month and up over 13% for the year.
Stocks recovered from early loses due to a reading on composite eurozone manufacturing and services falling to 51.5 (down from 52.2). The European Commission reported a measure of consumer confidence in the eurozone rose to -14.5 (up from -14.9), climbing to its highest level since July 2011.
The German market ended higher around all-time highs again. In London the stock market rebounded from its fist loss in ten days, on the back of the Chinese data, and is still trading near new 11-week highs, after recording its longest rally since May.
In the UK the FTSE 100 closed up 0.6% at 6,713, the German DAX 30 closed up 0.7% at 8,980, the French CAC 40 closed up 0.4% at 4,275.
Asian markets rose holding around 5-month highs, on the back of corporate earnings, which trumped the news of Chinese money tightening and banks recording a tripling of bad debts.
The MSCI Pacific Index ended rose 0.2% for the session, as gainers modestly outnumbered losers and is up 3% for the month, trading around five month highs. The index is holding at recent highs as traders speculate the US Fed will continue stimulus until 2014. Markets around the region reacted to the Chinese HSBC Flash PMI manufacturing reading of 50.9 (up from 50.2 last month).
The Chinese market retraced yet again and is trading at its lowest level in over three weeks. The falls in the developers and lenders came as sellers stepped in, after the seven day repurchase rate, which is used for funding in the Chinese banking system, jumped 47 points to 4.05 percent, the highest in two months.
The Japanese market resumed its ten session winning streak, recovering from a weak session open. The Hong Kong market pulled back again, continuing its biggest loss in three weeks, led by developers, but is index still up over 16% from its June lows.
For the session the Chinese Shanghai Composite closed down -0.9% at 2,164, the Hong Kong Hang Seng closed closed down -0.7% at 22,835, and the Japanese Nikkei closed closed up 0.4% at 14,486, while the South Korean KOSPI closed up 0.5% at 2,046.
The Dollar Index was sharply lower at 79.19 on a higher Euro, and the Aussie Dollar closed sharply lower at 0.962. Commodities prices higher.
Overnight the COMEX WTI Crude for NOV13 delivery closed rose 0.3% at $US97.20, the COMEX Copper for NOV13 delivery closed up 0.1% at 3.269, the COMEX Gold for NOV13 delivery closed up 0.9% at $US1,346.50.
ASX News Today
AAC – Australian Agricultural Company will pay $27 million for two Northern Territory cattle stations as it prepares to open an abattoir in Darwin next year.
AMC – Amcor the global packaging giant will call its demerged Australasia and Packaging Distribution (AAPD) business Orora and expects that the demerger of Orora will become effective on 17 December.
API – Australian Pharmaceutical Industries , the drug distributor and health and beauty products retailer, says consumer confidence is improving, but the company is facing intense competition.
APN – APN News and Media will close one of its regional NZ printing plants with the loss of 20 jobs.
NCM – Newcrest Mining has told shareholders they acknowledge how disappointed they are with the company’s performance and are taking action.
PBG – Pacific Brands the clothing group, expects challenging trading conditions to continue, with 1H14 profit likely to be lower than the previous year.
SUL – The owner of Rebel Sports and Supercheap Auto plans to open 25 new stores in the year ahead, and says sales are improving.
TWE – Treasury Wine Estates says consumer demand for luxury products and wine in China is slowing, and expects the current financial year will be “challenging” as it deals with it’s excess of stock in the us.
TOL – Toll Holdings the transport and logistics provider, expects its underlying earnings in the
current year to improve upon last year despite not yet seeing any real improvement in the health of the economy.
WCB – Warrnambool Cheese and Butter’s chairman Terry Richardson has told shareholders that the board was still considering Murray Goulburn’s takeover proposal, but that it was not clear if it would pass the ACCC test.
WES – Coles supermarkets and liquor stores sold $6.9 million worth of goods during the September quarter, an increase of over 4 percent.
WCB – Bega chairman Barry Irvin says the dairy company intends to pursue a Warrnambool Cheese and Butter takeover, as shareholders endorse the bid.
WTF – Wotif the online travel group, says the holiday accommodation bookings are soft despite a rebound in consumer confidence.
ASX – to open higher
US & UK/Europe – recovered
US ADRs – Broadly higher!!…
ANZ +1.5%, NAB +0.4%, NWS -0.2%
AWC -1.2%, BHP +0.7%, RIO +0.6%, NEM +1.3%
By Michael Hevern
D2MX Investment Advisor
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