Posts Tagged ‘oil’

    • Stock Market Analysis: Energy Sector Rises as Markets Sell-Off Continues

    Thursday, February 24th, 2011

    *  Globally stock markets extended their declines as violence increased in Libya, a major oil-producing state.
    *  U.S. markets fell for a second session as investors sold stocks in the wake of the Libyan unrest.
    *  European markets fell again overnight, as violent unrest in Libya escalated, and continued to weigh on the markets.
    *  Asian markets generally sold-off again yesterday. China bucked the trend ending slightly higher.
    *  Commodities were generally higher. Gold and crude oil prices continue to surge on Middle East unrest.

    The SPI Futures is trading below the key level of 4850, but closed down -0.5% (or -23 pts) at 4,806.  The key levels for our index today are 4850 and 4750. M&A activity continues to drive specific stocks. 

    The ASX is set to trade lower today.  We will continue to focus on local earnings reporting this week, and we had generally negative leads from overseas markets.   Expect Materials and insurance stocks to again weigh on the market, while the Energy and Gold stocks will be in focus due to elevated gold and oil prices due to the unrest in the Middle East.   

    Investors need to monitor the escalating tensions simmering Middle East and North African with unrest in Libya and Bahrain, and tensions between Iran and Israel over the Suez Canal.

    See below for stocks in the news today.

    Economics News Today

    *  Private New Capital Expenditure & Expected Expenditure for Q4.

    U.S. Markets

    U.S. markets fell for a second session as investors sold stocks in the wake of the Libyan unrest.  The Dow Jones was dragged down by HP shares slumping 11%, after the tech giant posted a 16% increase in quarterly profit, however they surprised with weak revenue growth; also weighing were Caterpillar and 3M, both down 2%.

    Oil prices climbed again as investors worried over the geopolitical turmoil in Libya and the Middle East disrupting crude supplies.  As a result the Energy sector provided some support.  Of the energy majors Chevron added 2.3%, and Exxon Mobil gained 2.3%, with the two oil giants the strongest performers in the Dow Jones index for the year, up 12% and 20% respectively.  The top 11 performers on the S&P500 were all energy companies, with Cabot Oil & Gas up 11%, Range Resources and Chesapeake Energy both up 7%.

    The Dow closed down -0.6% (or -72 points) at 12,141, while in the broader market the S&P 500 index was down -0.4% (or -5 points) at 1,311 and the tech-heavy Nasdaq ended down -0.9% (or -24 points) at 2,732. The stock losses deepened as the S&P500 held below key support at 1324.

    Sectors that make up the S&P index all delivered negative performances with the exception of Energy, with underperformers including Industrials down -1.8%, Materials down -0.7% and Financials down -0.4%. Energy rose 2.0%.

    European Markets

    European stocks fell sharply again overnight, as investors continued to fret over the political turmoil in Libya.  The Stoxx Europe 600 index was down for a fourth straight day of declines, slipping 1.1%. 

    Oil prices continued their rally on fears the unrest in Libya will disrupt supplies flowing from the oil-rich nation.  Libya is the first major oil exporter to be engulfed by the crisis and there are fears that the unrest will continue to spread in the Middle East, seriously impacting oil production in the medium term. Libya exports around 1.2 million barrels of oil a day; Saudi Arabia, on the other hand, exports 6.5 million barrels a day.  Two of Europe’s biggest energy companies, the Spainish Repsol YPF and Italian Eni SpA, have halted operations in Libya, while Austria’s OMV has “temporarily” reduced its production.

    In London the FTSE 100 fell for a fourth straight day for its longest losing streak since August.  The BoE released the minutes of its last policy meeting which indicated greater support among officials for raising interest rates, which has sent the British pound to the highest level in over 3 months. In Germany auto stocks came under pressure (down over 3%), as did the airlines.

    In London the FTSE 100 index closed down -1.7% (or -73 points) at 5,923, the German DAX was down -1.7% (or -124 points) at 7,194, while in France the CAC was down -0.9% (or -37 points) at 4,013.

    Asian Markets

    Asian markets generally sold-off again yesterday, as investors continued to worry over the escalating political tensions in the Mideast and North Africa, with no sign of an end to the Libyan crisis. 

    The Hong Kong market declined again, as most property developers ended lower following government proposals to increase land supply.  The Hong Kong market had some good news from the Financial Secretary John Tsang in his annual budget speech, reporting Hong Kong’s economy grew 6.8% in 2010, (exceeding forecasts of 6.5%) and expects the economy to grow 4%-5% in 2011. The government will also increase the supply of land for sale in 2011, putting 18 new sites up for sale in the financial year starting 1 April, compared with 10 sites in the current financial year. 

    Japanese stocks were weighed down by Moody’s downgrade of Japan to from stable to negative, and the yen’s strength against the US dollar. 

    In China the Shanghai market fluctuated during the session, before ending higher on hopes for upbeat earnings for 2010.  A Chinese consumer confidence index fell in the fourth quarter to the lowest since 2009, indicating concern over inflation is weighing on sentiment and has running above the government’s 4 percent target for the past four months, despite a number of recent interest rate rises.

    In China the SSE Composite closed down -2.6% (or -76 points) at 2,855, while in Hong Kong the Hang Seng Index was down -0.4% (or -84 points) at 23,906 and in Japan the Nikkei 225 Index was down -0.8% (or -86 points) at 10,579.

    Commodities

    The Dollar Index was lower at 77.36 on a higher Euro, while the Australian Dollar last traded around parity at 100.14. Commodities were general higher.

    For the session the Benchmark crude NYMEX for December delivery was up 3.7% (or $US3.52) to settle at $US98.94.  Copper prices are back at 2-year highs. Copper for December delivery was down -1.7% (or -0.7 cents) at $US4.2960, while April gold was up 0.9% (or $US12.90) at $US1,412.50.

    ASX Market News

    AGK – AGL Energy Ltd reported a 30.4 percent rise in 1H11 net profit and will ramp up its marketing spend in NSW as the retail margins in the state are strong.

    AIO – Asciano Ltd has posted a 33 percent drop in 1H11 profit, citing external factors such as weather and weak demand will impact its full year performance.

    AUN – Austar United Communications Ltd, the pay television provider, increased FY profit 69 percent after recording an increase in the average number of television subscribers.

    AWE – AWE, the oil and gas company, expects to produce 6.5 million barrels of oil equivalent (BOE) in the current financial year and says it is optimistic about the future.

    BLY – Boart Longyear the mining driller, returned to profit in 2010 reporting an $US84.5 million FY11 net profit after a $US14.9 million net loss in 2009.

    CCL – Coca-Cola Amatil Ltd (CCA) increased FY11 profit 10.8 percent as the local bottler of Coke made a solid start to calendar 2011.

    CIL – Centrebet International expects a stronger second half in the FY11 financial year, after booking a lower first half net profit.

    COU – Count Financial has posted 1H11 net profit up 212 percent, and expects to post growth in earnings per share in the full year by more than 120 per cent, with normalised net profit to rise by over 25 per cent.

    DJS – David Jones Ltd expects 1H11 profit to rise by five percent despite a “challenging environment”, as first half sales fell 0.2 percent on a statutory weeks basis.

    IAG – Insurance Australia Group has cut its FY11 guidance due to the expected cost of the earthquake in Christchurch.

    MAH – Macmahon Holdings Ltd posted a disappointing 1H11 loss due to a write-down on its joint venture Pilbara rail project with Leighton Holdings Ltd.

    MCC – Macarthur Coal Ltd reported a 256 percent increase in 1H11 profit, boosted by higher coal prices.

    OSH – Oil Search expects to produce less oil in calendar 2011 as it undertakes work related to the PNG LNG project.

    OST – OneSteel says its 1H11 profit was steady, and forecast margins in its steel business to improve in the fourth quarter.

    PPT – Perpetual Ltd’s 1H11 profit fell by 29 percent and the fund manger says it is seeing stability return to markets.

    REX – Regional Express Holdings Ltd (Rex) says net profit declined in 1H11.

    SUN – Suncorp Group Ltd has reported a 39 percent fall in 1H11 net profit and forecast higher insurance premiums due to the recent extreme weather events.

    VBA – Virgin Blue Holdings reported a large decline in 1H11 net profit and says conditions in the second half will be challenging.

    WAN – West Australian Newspapers Holdings Ltd says it has raised $325 million from the institutional component of its entitlement offer.

    WEC – White Energy Company is closing in on its $486 million acquisition of Cascade Coal Pty Ltd after a positive independent expert report.

    WHC – Whitehaven Coal the NSW-focussed coal miner suffered a 1H11 loss, but expects to return to profitability for the full year.

    WOR – WorleyParsons Ltd’s 1H11 profit declined 6.8 per cent as the engineering services provider said the markets for its services were likely to improve in the 2H.


    Local Corporate Reporting     
     
    AGO – Atlas Iron Ltd         Interim 2010 Results
    ALL – Aristocrat Leisure Ltd         Full year 2010 Results
    CAB – Cabcharge Australia Ltd        Interim 2011 Results
    CNP – Centro Properties Group        Interim 2011 Results
    FXJ – Fairfax Media          Interim 2011 Results
    GMG – Goodman Group          Interim 2011 Results
    HTA – Hutchison Telecommunications   Full year 2010 Results
    IAG – Insurance Australia Group Ltd  Interim 2011 Results
    IFL – IOOF Holdings Ltd     Interim 2010 Results
    IIF – ING Office Fund         Interim 2011 Results
    MAP – MAP Airports International Ltd Full year 2010
    MML – Medusa Mining Ltd      Interim 2010 Results
    PBG – Pacific Brands Ltd     Interim 2011 Results
    PNA – PanAust Ltd            Full year 2010 Earnings conference
    PPX – PaperlinX Ltd          Interim 2011 Results
    ORG – Origin Energy Ltd      Interim 2011 Results
    SBM – St Barbara Limited     Interim 2011 Results
    RHC – Ramsay Health Care Ltd         Interim 2011 Results
    TOL – Toll Holdings        Interim 2011 Results
    TTS – Tatts Group Ltd       Interim 2011 Results
     
    Ex-dividend Date
     
    PMV – Premium Investors
    SMX – SMS Management
    WPL – Woodside Petroleum

     

    Market Summary    

    ASX – to open lower
    US & UK/Europe – lower
     
    US ADRs –  Mixed
     
    BHP up 0.3% & RIO up ; AWC down -0.6%
    ANZ up 0.1% & NAB up 0.4%
    NEM  up 1.6%, JHX up 1.5%, NWS down -0.6%
     
    Commodities Stock Index up 1.0%
    Gold Stocks Index up 1.6%
    Oil Stocks Index up 2.3%

     

    By Michael Hevern
    Head of Research
     

     

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    Stock Market Analysis: Markets Rise on Solid Corporate Earnings and M&A

    Thursday, February 17th, 2011

    *  U.S. markets recovered overnight after strong corporate earnings results and a further round of corporate M&A deals
    *  European stock markets rose overnight to two-and-a-half year highs, led by the financials.
    *  Asian markets ended mixed yesterday.  The Japanese market hit a 9-month high.
    *  Commodities were generally higher.

    The SPI Futures is trading above the key level of 4800, and closed up marginally 0.2% (or 11 pts) at 4,923.  The key levels for our index today are 4950 and 4870. M&A activity continues to drive specific stocks. 

    The ASX is set to trade higher today.  We will continue to focus on local earnings reporting this week, as we had positive leads from overseas markets.   Expect Financial and Materials stocks to be in focus. See below for stocks in the news today.

    Economics News Today

    * International Merchandise Imports for January
    * Foreign Exchange Transactions and Holdings of Official Reserve Assets for January.

    U.S. Markets

    U.S. markets recovered overnight, after strong corporate earnings results and a further round of corporate M&A deals.  Stock gains were led by the materials and energy sectors, but retailers also rose after M&A activity.  The gains came despite a mid-session pullback, after Israel’s foreign minister warned that the two Iranian warships that were crossing the Suez Canal into the Mediterranean Sea were seen as “provocations” that Israel cannot ignore. 

    The S&P 500 stock index has now doubled from its GFC low, with the market capitalisation of the S&P 500 now about $US12 trillion, compared with the $US6.9 trillion during the selloff in early 2009. 

    The Fed Reserve’s Federal Open Market Committee (FOMC) meeting minutes showed the Fed is more optimistic about the U.S. economic outlook, raising their growth outlook for 2011, as they expected inflation to remain low and unemployment to remain high. 

    In economic news U.S. home construction rose 15% in January to the highest level since September, boosted by multi-family homes, and producer prices (PPI) also showed mild gains, which should ease inflation concerns. 

    In coporate news:
    * Discount retailer Family Dollar Stores surged 22% after receiving an unsolicited takeover bid;
    * Dell jumped 13% after the computer maker reported 4Q earnings tripled, thanks to strong demand from corporate customers and lower component costs
    * Deere gained 2% after fiscal 1Q earnings doubled, helped by agricultural-equipment sales in the U.S. and Canada.

    The Dow closed up 0.5% (or 62 points) at 12,288, while in the broader market the S&P 500 index was up 0.6% (or 8 points) at 1,336 and the tech-heavy Nasdaq ended up 0.8% (or 21 points) at 2,826.

    Sectors that make up the S&P index delivered solid performances, with outperformers including the Materials and Energy sectors up 1.3%, and Industrials and Financials 0.5%.

    European Markets

    European stock markets rose overnight to two-and-a-half year highs, led by the financials.  The Stoxx Europe 600 index gained 0.4% above its highest closing level since August 2008.  Investor sentiment was boosted by some solid earnings news, as the French and German markets rose to levels unseen since 2008. 

    In London the FTSE 100 index reversed the losses of the previous session.  The Bank of England (BoE) has forecast that the British economy will likely avoid a double-dip recession, despite suffering contraction in the final quarter of last year.  Inflation is expected to hold well above its target of 2 percent this year, rangeing between 4% to 5% near-term.  However, the central bank, in releasing its quarterly economic report, also predicted annual inflation would hold “well above” its target of 2.0 per cent this year, and would fluctuate between 4.0 and 5.0 per cent in the near term.  Financials continued to lead the gains after the encouraging results from Barclays and the French bank Societe Generale is seen as signalling that the turnaround of the banks, that suffered severely from the GFC, is underway.

    In London the FTSE 100 index closed up 0.8% (or 48 points) at 6,085, the German DAX was up 0.2% (or 14 points) at 7,414, while in France the CAC was up 1.0% (or 41 points) at 4,171.

    Asian Markets

    Asian markets ended mixed yesterday.  The Japanese market hit a 9-month high as exporters led the gains on the back of a weaker yen, and as the US dollar hit a 2-month high against the yen. 

    In Hong Kong the market has bounced off a key support level that has been in place for the past 4 months.  In China the Shanghai Composite rose for a fifth straight session, boosted by steelmakers, which were bought up as they were able to pass on production cost hikes.  However the Chinese inflation data showing a 4.9 percent rise in prices could provide some headwinds for the market amid fears that further tightening measures may be required. 

    In China the SSE Composite closed up 0.9% (or 25 points) at 2,924, while in Hong Kong the Hang Seng Index was up 1.1% (or 257 points) at 23,157 and in Japan the Nikkei 225 Index was up 0.6% (or 62 points) at 10,808.  The Indian market has jumped nearly five per cent in a 4-day rally as bargain hunters stepped in after its recent sharp sell-off last week.

    Commodities

    The Dollar Index was lower at 78.24 on a higher Euro, while the Australian Dollar last traded just above parity at 100.32. Commodities were generally higher.

    For the session the Benchmark crude NYMEX for December delivery was up 0.8% (or $US0.69) to settle at $US85.01.  Copper prices back at 2-year highs. Copper for December delivery was down -1.5% (or -6.6 cents) at $US4.4745.  December gold was up marginally 0.1% at $US1,374.30.

    ASX Market News

     
    AAD – Ardent Leisure Group the theme park operator, reported 1H11 net profit was up 130 per cent, and says all its divisions have strong growth momentum heading into the 2H11.

    ALZ – Australand has forecast earnings to grow by at least five percent in 2011 after returning to profitability in 2010 and says the outlook for residential, industrial and office sectors remains positive.

    ARP – ARB Corporation, the automotive group, has reported a double-digit lift in 1H11 net profit amid strong sales growth and says it expects reasonable growth for the FY11.

    BHP – BHP Billiton reported a 71.5 percent rise in 1H11 net profit and is confident of the outlook for commodities as emerging markets continue to drive growth.

    BOQ – Bank of Queensland has cut its full year profit guidance and warned of flat dividends, due to the effect of Queensland floods and Cyclone Yasi.
    BTA – Biota Holdings, the influenza vaccine developer, has slumped 16% after reportig a 1H11 loss, but says it aims to prioritise programs that are likely to lead to near term commercial returns.

    COF – Coffey International has slumped 14% after reporting a 1H11 net loss of $4.7 million, but it expects a better second half performance.

    CSL – CSL, the global blood products and vaccines maker, reported a 19 percent fall in 1H11 profit, and expects FY11 profit to decline around 10 percent, at the current exchange rates.

    DMP – Domino’s Pizza Enterprises, the fast food supplier, posted a 17 percent rise in 1H11 net profit, upgrading full year guidance to 15 percent growth.

    DXS – Dexus Property Group has upgraded its FY11 earnings guidance after returning to profitability and reported an interim net profit after tax of $294.4 million for 1H11.

    GCL – Gloucester Coal has increased 1H11 profit by 28 percent on the back of strong coking coal sales.

    GPT – GPT Group, the Property investor, says it has sold a portfolio of senior living communities in the US for $US890 million.

    MRM – Mermaid Marine the supplier of marine services to the oil and gas industry, has reported a small jump in 1H11 profit, and is predicting a stronger second half.

    QAN – Qantas 1H11 results, due out today, are expected to include a fourfold increase in profit after improvement in global aviation markets, and a possible resumption of dividends.

    SKC – Sky City the casino operator says its 1H11 normalised net profit rose 2.1 percent to $51 million, as revenue was steady in Auckland but softer in Darwin after the introduction of smoking bans.

    SAI – SAI Global, the applied information provider, has reported 1H11 profit up 23 percent, and says full year profit will grow by another third.

    SMX – SMS Management and Technology has posted a 15 per cent rise in 1H11 net profit.

    TRS – The Reject Shop posted a 16 percent fall in 1H11 net profit, but could not provide guidance for the FY11 due to uncertainty about the costs to the company of the Queensland floods.

    WDC – Westfield Group has returned to profitability with more than $1 billion in profit as the group’s restructure provides the platform for long term growth.


    Local Corporate Reporting     
     
    ACP – Abacus Property Group     Interim 2011 Results
    ABC – Adelaide Brighton Ltd      Full year 2010 Results
    AMP – AMP Ltd                           Full year 2010 Results
    ASX – ASX Ltd                            Interim 2011 Results
    EDT – EDT Retail Trust               Interim 2011 Results
    LLC – Lend Lease Corp                Interim 2011 Results
    OGC – Oceanagold                      Full year 2010 Results
    NHC – New Hope Corp Ltd        Quarterly Activities Report
    QAN – Qantas Airways               Interim 2011 Results
    STO -  Santos Ltd                         Full year 2010 Results
    WES – Wesfarmers Ltd                Interim 2011 Results
    WDC – Westfield Retail Trust     Interim 2011 Results
    ANN – Ansell Ltd                  Interim 2011 Ex-dividend date
    GUD – G.U.D. Holdings        Interim 2011 Ex-dividend date
    OZL – OZ Minerals               Full year 2010 Ex-dividend date
     
    Market Summary    

    ASX – to open higher
    US & UK/Europe – higher
     
    US ADRs –  Higher
     
    BHP down 1.3% & RIO up ; AWC up 1.0%
    ANZ up 2.2% & NAB up 1.3%
    NEM  down 0.1%, JHX down 0.2%, NWS up 1.2%
     
    Commodities Stock Index up 1.0%
    Gold Stocks Index up 1.1%
    Oil Stocks Index up 1.2%

     

    By Michael Hevern
    Head of Research
     

     

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    Stock Market Analysis: Chinese Tightening Measures Weigh On Sentiment

    Tuesday, January 18th, 2011

    * US markets were closed for a public holiday overnight, but their futures sold-off on the back of the Chinese introducing tightening measures. The earnings season will pick up later this week.
    * European stock markets closed lower, but remain around 28-month highs, though trading volumes were low.
    * Asian stock markets closed lower. The Chinese market fell sharply as expectations rose of tougher tightening measures ahead.
    * Commodities prices fell on concerns over Chinese demand.

    The SPI Futures is testing the key 4800 level, and closed up marginally 0.1% (or 3 pts) at 4,748.  The key levels for our index today are 4800 and 4730. M&A activity continues to drive specific stocks. The ASX is set to consolidate, as we had weak leads from overseas markets and no activity from the closed US markets. 

    Locally this is a busy week for corporate production and activities reports for stocks like BHP Billiton, Rio Tinto, Mt Gibson, Santos and Gindalbie.  Investors are still digesting the ramifications of the floods on Eastern Australia. 

    Economics News Today
    * None.

    US Markets

    US markets were closed for a public holiday overnight, but their futures sold-off on the back of the Chinese introducing tightening measures.  There is an official visit by Chinese President Hu Jintao, to the USA later this week, which will likely be a catalyst for markets as the week progresses and for US-China relations in the long term.

    The earnings season also picks up this week, with a handful of financial and tech companies among those set to report fourth-quarter and full-year results. Earnings are due from financial corporations including investment banks Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS), as well as latest results from Charles Schwab Corp. (SCHW) and Citigroup Inc. (C) on Tuesday; Bank of New York Mellon Corp (BK), U.S. Bancorp (USB) and Wells Fargo & Co. (WFC) on Wednesday; and Capital One Financial Corp. (COF) and PNC Financial Services Group Inc. (PNC) on Thursday.  Tech giants Apple Inc. (AAPL), International Business Machines Corp. (IBM), EBay Inc. (EBAY) and Google Inc. (GOOG) also report this week, providing a broad view of consumer and business spending patterns. Apple stock futures fell immediately overnight, after news that CEO Steve Jobs was granted medical leave hit international markets.

    The Dow closed at 11,787, while in the broader market the S&P 500 index was at 1,293 and the tech-heavy Nasdaq was at 2,755.

    European Markets

    European stock markets closed lower overnight, but remain at around 28-month highs.  Trading volumes were low as the US markets were closed, leaving the European markets with little guidance from overseas. 

    BP shares gained 0.2 percent on news of its deal with Russian state firm Rosneft. The deal has attracted some critical political comment.  BP has also gained permission to explore for oil and gas off the Australian south coast. 

    European finance ministers met to discuss means of boosting the eurozone debt rescue fund.  There is no clear decision yet on how best to strengthen the EUR750 billion resuce fund for debt-laiden PIIGS economies, which is concerning investor sentiment.

    In London the FTSE 100 index closed down -0.3% (or -16 points) at 5,986, the German DAX was flat (or up 2 points) at 7,078, while in France the CAC was down marginally -0.2% (or -8 points) at 3,995.

    Asian Markets

    Asian stock markets closed lower yesterday.  The Chinese market fell sharply, amid rising expectations of tougher measures ahead as the government attempts to crack down on inflation.  Property and banking stocks led the losses after official data showed property prices in China’s major cities posted their fourth straight month-on-month rise in December.  China’s central bank said on Friday it would raise the amount of money that lenders must keep in reserve by 50 basis points on 20th January, and this move along with interest rate rises late last year has raised expectations that further tightening measures may be required to cool the economy.  Chinese December inflation data is due out on Thursday.  Concerns about China also hit stocks in Japan, with falls led by construction-related stocks with exposure to the Chinese market.

    In China the SSE Composite closed down -3.0% (or -85 points) at 2,707, while in Hong Kong the Hang Seng Index was down -0.5% (or -126 points) at 24,157 and in Japan the Nikkei 225 Index was flat at 10,503.

    Commodities

    Gold remained below $US1,400 an ounce, while crude oil and copper fell.  The Dollar Index was up marginally 0.2% at 79.37 on a lower Euro, while the Australian Dollar last traded lower at 99.32. Commodities were generally lower.

    Benchmark crude NYMEX for December delivery was down -0.6% (or $US-0.52) to settle at $US91.02. Copper prices backed off around 2-year highs, with copper for December delivery down -0.7% (or -2.9 cents) at $US4.3745. Gold prices were off all-time highs again, with December gold was down marginally -0.1% at $US1,359.20. 

     
    Market Summary    

    ASX – to open positively
    Asia/Europe – Lower

      
    By Michael Hevern
    Head of Research

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    ASX Company News: Optiscan Imaging Executes Agreement With Carl Zeiss

    Thursday, December 23rd, 2010

    Optiscan (OIL) executed agreements with Carl Zeiss around the expansion and intensification of the collaboration between the two companies. These expanded arrangements will build on the successful neurosurgery trials at The Barrow Neurological Institute in Phoenix, USA paving the way to commercialisation of Optiscan product in neurosurgery.

    The exact terms of our agreements with Zeiss are commercial in confidence, restricting the detail we may disclose, suffice to say that Optiscan will receive significant immediate and near term (2011FY) cash payments flowing from these new arrangements boosting cash reserves beyond $2 million by 31 December 2010.This expansion of our activities with Zeiss, a world leader in their field, provides validation of our technology and our ability to take that technology to product.

    In addition to entering further fields of medical application with Zeiss in the near term, the progression of our developments with Zeiss complements the development of our second generation platform technology for use in other established applications such as gastroenterology within field of flexible endoscopy.

    Optiscan is a global leader in microscopic imaging technologies for medical markets.  Optiscan’s unique and patented technologies enable high-powered microscopes to be miniaturised and used inside the body.  The technology enables microscopic imaging of up to 1000 times magnification to be achieved.  Doctors can use the technology to instantly see cellular level details of tissue without the requirement to surgically remove tissue (biopsy).

    Optiscan’s patented miniaturised microscope technology is being used in the field of flexible endo-microscopes.  Optiscan has also entered into a collaboration with the Carl Zeiss Group in Germany for the use of its patented miniaturised microscope technology in rigid endoscopes in key Zeiss markets.

    www.optiscan.com

    http://www.traderdealer.com.au/Fundamentals/oil

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    Stock Market Analysis: Korean Tensions Simmer as US Markets Edge Higher

    Tuesday, December 21st, 2010

    US stocks drifted higher overnight, as energy stocks were boosted by the big chill and investors chose to focus on domestic news which is pointing to a continuing economic recovery.  European markets also rose overnight. Asian stock markets ended mostly lower yesterday, as geopolitical tensions on the Korean peninsula escalated.  Commodities prices were higher.

    The SPI Futures is above its key weekly pivot level of 4700 and closed up 0.5% (or 24 pts) at 4,753.  The key levels for our index this week are 4860 and 4630. M&A activity continues to drive specific stocks on the ASX, which is set to open higher this morning, as we had positive leads from overseas markets.  Look to small and mid cap stocks to outperform this week, as we see some “window-dressing” by fund managers trading into the year’s close. Expect trading volumes to reduce this week, and miners and banks should see some recovery today. 

    US Markets

    US stocks drifted higher overnight with investors choosing to focus on domestic news which is pointing to a continuing economic recovery. Energy stocks rose, as colder weather helped boost crude-oil prices to settle at nearly $US89 a barrel. American Express weighed on markets (down 4%) after reports that they will be heavily impacted, and may face permanent damage to the fastest-growing part of their business, after the Federal Reserve proposed rules that could cut debit-card transaction fees by 84 percent.  Sentiment continued to be helped by recent comments from the former Fed Chairman Alan Greenspan that the US economy is picking up speed and may grow by 3 to 3.5 percent next year.  The benchmark VIX index for US stock options remained around 16, its the lowest since April, which means that investors can insure themselves against stock prices falls relatively cheaply near-term.  The best-performing sectors were energy up 0.7% and consumer staples up 0.6%, while the materials sector also rose 0.3%. 

    The Dow closed down 0.1% (or 13 points) at 11,478 while in the broader market the S&P 500 index was up 0.3% (or 3 points) at 1,247 and the tech-heavy Nasdaq ended up 0.3% (or 6 points) at 2,649.

    European Markets

    European markets rose overnight, despite the big chill that is raging across the continent. Airlines and retailers fell on fears of lost business caused by the severe winter weather, however Autos outperformed on the session after upbeat comments for 2011 from Volkswagen.  The PIIGS markets were mixed with Greece selling off down 3.2 percent, while the Italian market surprised posting particularly strong gains, up 1.5 percent, with M&A activity and banks recovering.  European Fund managers, like their US counterparts, are trying to play catchup to the benchmark performances, but a record number of funds stand to underperform when books are ruled off on the 31st Decemeber. 

    In London the FTSE 100 index ended higher, with oil and gas shares leading the way.  In London the FTSE 100 index closed up 0.3% (or 20 points) at 5,892, the German DAX up 0.5% (or 13 points) at 7,018, while in France the CAC was up 0.4% (or 18 points) at 3,906.

    Asian Markets

    Asian stock markets ended mostly lower yesterday, as geopolitical tensions on the Korean peninsula escalated.  The Japanese and Hong Kong markets fell as high-tech exporters with exposure to the eurozone underperformed the broader market. South Korea and China were the most volatile markets, with the Korean Kospi ending 0.3% lower, while the Chinese Shanghai Composite initially slid more than 3% earlier in the day but finished well off its lows.  Chinese property developers weighed on concerns that prices may drop and that supply may increase after the Ministry of Land and Resources urged local authorities to take measures to curb rapid growth in land prices and to maintain a stable land supply for residential use. Markets recovered sharply as fears eased in the wake of a CNN report that North Korea is willing to permit the return of UN nuclear inspectors.

    In China the SSE Composite closed down -1.4% (or -41 points) at 2,853, while in Hong Kong the Hang Seng Index was down -0.3% (or -76 points) at 22,639 and in Japan the Nikkei 225 Index was down -0.9% (or -87 points) at 10,261.

    Commodities

    Copper remained around record levels again, on continuing concerns that demand will outpace supply into 2011 driving prices higher.  Gold was higher still below $US1,400 an ounce, and crude oil was higher as well. The Dollar Index was up 0.3% at 80.61 on the lower Euro, while the Australian Dollar last traded at 98.64.  Commodities were generally higher.

    Benchmark crude NYMEX for December delivery was up 0.9% (or $US0.79) to settle at $US88.66. Copper prices backed around 2-year highs. Copper for December delivery was up 1.1% (or 4.8 cents) at $US4.1990. Gold prices were off all-time highs again, with December gold up 0.5% (or $6.90) at $US1,386.50.

    Key International News Drivers Today

    US -   U.S. markets positive.
    EU –   European markets recovered.
    CHINA – geopolitical tensions on the Korean peninsula escalated. China prospect of implementing further tigthening measures.
    JAPAN – Market holding above 10,000 at 7-month highs.


    Markets Overview 


    Market

    Movement

    The Dow Jones Industrial Average

     Down -0.1% (or -13 pts)  at 11,478

    The S&P 500                             

     Up 0.3% (or 3 pts)  at 1,247 

    The Nasdaq                              

     Up 0.3% (or 6 pts)  at 2,649



    The FTSE 100                           

     Down -0.2% (or -9 pts)  at 5,872

    The German DAX               

     Down -0.6% (or -41 pts)  at 6,893

    The French CAC             

     Down -0.5% (or  -21 pts)  at 3,888   



    The Dollar Index 

     Down  Marginally -0.12% at 80.16

    The Australian Dollar 

     Last traded at 98.85

    The Commodities Index

     Up 1.0% at 320.6



    Crude Oil Futures      

     Up 0.4% at $88.21 

    Gold Futures             

     Up 0.6% at $1,377.20 

    Copper Futures             

     Up 1.1% at $4.1640

    SPI Futures              

     Up  0.2% (or 8 pts) at 4,767 





    Market

    Movement

    SSE Composite (China) 

     Down -1.4%  at 2,894

    Hang Seng Index (Hong Kong) 

     Down -0.3%  at 22,639

    Nikkei 225 Index (Japan) 

     Down  -0.9%  at 10,216



    ASX News Today
     
    COF- Coffey International, the consultant engineering frim, announced another round of job cuts to reduce costs. Shares fell 8%.

    CRG- Crane Group has rejected a $740 million takeover offer from NZ’s Fletcher Building as “inadequate”.

    FLT- Flight Centre has paid $US10.4 million for the remaining 74 percent to take full ownership of Garber Travel Services Inc.

    MAP- MAp Group says Sydney Airport has recorded a 4.7 percent lift in passenger traffic in November, citing increased Chinese traffic.

    MTN- Marathon Resources says the South Australian government will renew its controversial uranium exploration licence in the state’s Flinders Ranges for a year.

    PPT- Perpetual says its takeover talks with US-based private equity firm Kohlberg Kravis Roberts & Co (KKR) have ceased after failing to agree to terms for a deal.

    RHC- Ramsay Health Care has upgraded its full year profit forecast after flagging a rise of up to 28 percent in 1H11 profit.

    SMZ- Stirling Minerals Ltd has backed the junior explorer’s takeover of iron ore hopeful DMC Mining Ltd.

    STO-  Santos Ltd has raised $500 million from an institutional placement at $12.55 a share, having secured a liquefied natural gas off-take deal with Korea Gas Corp. and agreed to sell a 15% stake in its Gladstone LNG project to Korea Gas and France’s Total for $665 million.

    TAH- Gambling operator Tabcorp Holdings says National Bank has reduced its holding in the company.

    VBA- Monitor as Virgin Blue Holdings Ltd and Air New Zealand Ltd are likely to get a decision for trans-Tasman alliance from the NZ government this week.

     
    Economic Reports
    RBA Monetary Policy Meeting Minutes

      

    Companies:

    Incitec Pivot Limited (IPL)    Full year 2010 AGM
     
    Ex-Dividends
    Thorn Group Limited (TGA)
    iShares S&P Asia 50 (IAA)
    iShares S&P Eu 350 (IEU)
    iShares Global 100 (IOO)
    iShares Glb Conssta (IXI)
    iShares Glb Health (IXJ)
    iShares Glb Telecoms (IXP)
    iShares Ftse China25 (IZZ)
     
    Market Summary    


    ASX – to open higher
    US & UK/Europe – EU  and  US Positive

     
    US ADRs –  Mixed
     
    BHP up 0.1% & RIO up; AWC down 2.0%
    ANZ down 0.9% & NAB down 1.0%
    NEM  up 1.3%, JHX up 0.5%, NWS down 0.2%
     
    Commodities Stock Index up 0.5%
    Gold Stocks Index up 0.8%
    Oil Stocks Index up 0.4%

     

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: Markets Pause – Stimulus And Debt Are In Focus

    Tuesday, December 7th, 2010

    US markets end flat after Friday’s disappointing employment report which showed the unemployment rate rose to 9.8% and cautious comments from the Fed Chairman Ben Bernanke. European markets generally closed higher with the energy sector the top gainer in Europe as crude traded near 2-year highs around $US90 a barrel. Asian stocks ended mixed yesterday. Investors reacted to the disappointing US non-farm payrolls data. Commodities prices continued to rise on demand/supply economics.

    The SPI Futures is above its key weekly pivot level of 4700 and the ASX is set to open flat to higher as the SPI Futures closed up marginally 0.1% (or 6 pts) at 4,705. The key levels for our index today are 4730 and 4650. M&A activity continues to drive specific stocks. The ASX is set to open flat again today, with mixed leads from overseas markets. The ASX traded flat yesterday and is expected to tread water again today, as the RBA is expected to leave rates on hold.  Expect the ASX to be driven by overseas news this week, with miners, energy and larger caps the main focus.

    US Markets

    US markets end flat, after Friday’s disappointing employment report showing the unemployment rate rose unexpectedly rose to 9.8% last month. Caution ruled after comments from the Fed Chairman Ben Bernanke suggesting that the US recovery needs to be carefully managed and “may not be” self-sustaining, but he did not think a double-dip recession in the US is likely. Major banks were weak overnight on reports that the US credit rating agencies could downgrade some large US banks and brokers in early 2011. In Techs the star was Cisco rising 2.4% after they were upgraded to outperform from perform.  The sectors that outperformed were led Energy up 0.3% and Materials up 0.2%, while defensive sectors lagged with Healthcare down -0.6% and Consumer Staples down 0.2%.  The Dow closed down marginally -0.2% (or -20 points) at 11,362, while in the broader market the S&P 500 index down marginally -0.1% (or -2 points) at 1,223 and the tech-heavy Nasdaq ended up marginally 0.2% (or 6 points) at 2,598.

    European Markets

    European markets generally closed higher. The energy sector was the top gainer in Europe as crude traded near $US90 a barrel. The financial stocks lost ground as finance ministers met in Brussels to consider their next move in the sovereign debt crisis. The  meeting of euro-zone finance ministers is expected to discuss Ireland’s bailout package, and the establishment of a euro-zone debt agency to issue e-bonds in lieu of national debt. German Chancellor Angela Merkel sees no need to increase the European Financial Stabilization Facility which includes a EUR440 billion bailout fund for euro-zone countries, following reports suggesting ministers could also discuss whether the bailout package could be increased in an attempt to boost confidence in the euro.  Fund Managers and Institutions are starting to close their books for the year and trading volumes are historically much lower in the second half of December.  In London the FTSE 100 index closed up 0.4% (or 25 points) at 5,770, the German DAX up marginally 0.1% (or 7 points) at 6,954, while in France the CAC was down marginally -0.1% (or -2 points) at 3,768.

    Asian Markets

    Asian stocks ended mixed yesterday. Investors reacted to the disappointing US non-farm payrolls data released on the weekend and considered what it may mean for the need of yet another stimulus package.  Chinese shares ended higher on gains in oil producers as crude oil is trading around 2-year highs.  However investors remain wary over the likely hood of further tightening measures by the Chinese government. The Japanese market continues to trade around 5-month highs, but both Japanese and Hong Kong markets ended lower.  In China the SSE Composite closed up 0.5% (or 15 points) at 2,857, while in Hong Kong the Hang Seng Index was down -0.4% (or -83 points) at 23,238 and in Japan the Nikkei 225 Index was down marginally -0.1% (or -11 points) at 10,167.

    Commodities

    Copper rose to 3-week highs on overnight, as supply concerns into 2011 drove prices higher and as the dollar fell versus the euro. Oil prices traded around $US90 a barrel around 2-year highs. Gold held above the break above $US1,400 an ounce. The Dollar Index up marginally 0.2% at 79.56 on lower Euro, while the Australian Dollar last traded lower at 98.99.  Commodities were generally higher.

    Benchmark crude NYMEX for December delivery was flat at -0.1% (or $US-0.06) to settle at $US89.13. Copper prices backed-off 2-year highs, Copper for December delivery was up marginally 0.2% (or 0.9 cents) at $US4.0025. Gold prices off all-time highs again, with December gold was up 1.1% at $US1,420.40.

    Key International News Drivers Today

    US – US markets were flat, as fund managers reallocated their books, after the disappointing employment report.
    EU –  The energy sector was the top gainer in Europe.
    CHINA -  China prospect of implementing further tightening measures.
    JAPAN – Market holding above 10,000 at 5-month highs.

    Markets Overview

    Market

    Movement

    The Dow Jones Industrial Average

    Down  Marginally -0.2% (or -20 pts)  at 11,362

    The S&P 500

    Down  Marginally -0.1% (or -2 pts)  at 1,223

    The Nasdaq

    Up  Marginally 0.2% (or 6 pts)  at 2,598



    The FTSE 100

    Up 0.4% (or 25 pts)  at 5,770

    The German DAX

    Up  Marginally 0.1% (or 7 pts)  at 6,954

    The Fench CAC

    Down  Marginally -0.1% (or -2 pts)  at 3,768



    The Dollar Index

    Up  Marginally 0.23% at 79.56

    The Australian Dollar

    Last traded at 98.99

    The Commodities Index

    Up 0.4% at 317.3



    Crude Oil Futures

    Down  Marginally -0.1% at $89.13

    Gold Futures

    Up 1.1% at $1,420.40

    Copper Futures

    Up  Marginally 0.2% at $4.0025

    SPI Futures

    Up  Marginally 0.1% (or 6 pts) at 4,705





    Market

    Movement

    SSE Composite (China)

    Up 0.5%  at 2,857

    Hang Seng Index (Hong Kong)

    Down -0.4%  at 23,238

    Nikkei 225 Index (Japan)

    Down  Marginally -0.1%  at 10,167

    ASX News Today

    The SPI Futures is above its key weekly pivot level of 4700 and the ASX is set to open flat to higher as the SPI Futures closed up marginally 0.1% (or 6 pts) at 4,705.  The key levels for our index today are 4730 and 4650. M&A activity continues to drive specific stocks. The ASX is set to open flat again today, with mixed leads from overseas markets.  The ASX traded flat yesterday and is expected to tread water again today, as the RBA is expected to leave rates on hold.  Expect the ASX to be driven by overseas news this week, with miners, energy and larger caps the main focus.

    AAD- Ardent Leisure Group says it has closed a $240 million debt facility with two banks.

    ALL- Aristocrat Leisure the gaming machine maker, has flagged a fall in FY11 operating profit as it struggles in North America and Japan.  ALL shares
    have fallen to 7-year lows.

    ASX- Access Economics has found that the proposed merger of the ASX and Singapore stock exchanges complies with Australia’s national interests.

    BHP- BHP and Rio Tinto Ltd have agreed they will integrate their Pilbara iron ore activities and will make a $350 million one-off payment to the WA government for state approval.

    BPT- Beach Energy Ltd is to alter its takeover offer for Impress Energy, terminating a merger plan and making an higher unconditional cash offer instead.

    FXJ- Fairfax Media Ltd surprised by saying chief executive Brian McCarthy has resigned from the company, the media group says.

    NCM- Newcrest Mining the gold producer has suspended operations at its Bonikro mine in Cote d’Ivoire, following contested elections in the West African nation.

    OSH- The US$15 billion PNG LNG JV in Papua New Guinea, operated by Exxon Mobil Corp., may fastrack an expansion to secure buyers, as competition for customers mounts.

    RIV- Riversdale Mining the Coal producer, has confirmed it is the target of a $3.5 billion takeover move from Rio Tinto (at $15/share).

    RMS- Ramelius Resources the gold producer has made a high grade gold intersection beneath a pit at its Mt Magnet project.

    SIP- Sigma Pharmaceuticals will lose 10-15 percent of its wholesaling revenues from February 2011 after Pfizer said it will distribute its prescription medications directly to chemists.

    NUF- Nufarm has arranged a new $900 million loan that will refinance the ag company’s existing debts due to expire on 15 December 2010.

    SFR- Sandfire Resources has increased its estimated resources fivefold for its DeGrussa copper-gold project in WA.

    WPL- Woodside has confirmed costs for its Pluto LNG project have blown out by $900 million (total cost is now up 7% to $13.5 billion) and it will take another 6-months to begin production while it rebuilds equipment that falls short of design specifications.

    Economic Reports :

    Australian PCI for November
    TD Securities Monthly Inflation Gauge RBA – Australian cash rate decision
    Official Reserve Assets Reserves for November

    Companies:
    None

    Ex-Dividends

    None

    Market Summary

    ASX – to open flat
    US & UK/Europe – Mixed
    US ADRs –  Generally Higher

    BHP up 0.1% &
    RIO up
    AWC up 2.3%
    ANZ down 0.5% &
    NAB down 2.3%
    NEM up 2.0%
    JHX up 0.1%
    NWS down 0.5%

    Commodities Stock Index up 0.5%
    Gold Stocks Index up 1.3%
    Oil Stocks Index up 0.7%

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: Markets Still Cautious Over EU Sovereign Debt

    Thursday, November 18th, 2010

    US markets traded flat overnight, as the Dow Jones Index continues to hover around 11000 level. Reports that the US banks may face further bank “stress tests” near-term, weighed on the Financial sector. European stocks traded higher overnight, recovering from the sell-off of the previous session, as Irish authorities are meeting with the EU, ECB and IMF to map a path for its future.  Asian stock markets ended lower yesterday, with Chinese stocks extending their recent heavy losses.  Resource stocks weighed on markets on the back of lower commodities prices.

    The SPI Futures is below its key pivot level of 4725 from last week and the ASX is set to open flat as the SPI Futures closed flat (or -1 pts) at 4,635. The key levels for our index today are 4680 and 4600. M&A activity continues to drive specific stocks. The ASX is set to open flat today, with subdued leads from overseas markets. Trade with protection, honor your stops or use options o protect your portfolio.

    US Markets

    US markets traded flat overnight. The Dow Jones continues to hover around 11000 level, which has held since mid-October.  Retailers supported the market up 0.9%, on the back of positive earnings reports from Home Depot and WalMart and Target gained 4% after 3Q earnings rose 23%.  Consumer spending, at least near-term, appears to be improving, albeit from a very low base.   Financials weighed down 0.7%, after The Wall Street Journal (WSJ) reported that the Federal Reserve will require all 19 banks that previously underwent “stress tests” during the height of the GFC to undergo another review of their capital adequacy and their ability to absorb losses under an “adverse” economic scenario. In economic data U.S. consumer prices showed a modest rise of 0.2% in October and underlying inflation remained flat for the third straight month.  While U.S. home construction during October fell 11.7% to its lowest level in 18 months. The Dow closed down marginally -0.1% (or -16 points) at 11,008, while in the broader market the S&P 500 index flat at 1,179 and the tech-heavy Nasdaq ended up 0.3% (or 6 points) at 2,476.

    European Markets

    European stocks traded higher overnight, recovering from the previous sell-off on fears of contagion over sovereign debt issues in the PIIGS countries, particularly Ireland, Portugal and Spain . However investors continue to be cautious as they monitor developments around the Irish financial crisis, with Irish authorities meeting with officials from the European Union (EU), International Monetary Fund (IMF) and European Central Bank (ECB) to decide the best way to provide any necessary support to address market risks.  In London the FTSE 100 index closed up marginally 0.2% (or 11 points) at 5,693, the German DAX up 0.6% (or 37 points) at 6,700, while in France the CAC was up 0.8% (or 30 points) at 3,810.

    Asian Markets

    Asian stock markets ended lower yesterday. The Japanese market was flat helped by the weakening yen. Chinese stocks extended their recent heavy losses due to concerns over the prospect of more tightening measures to restrain inflation.  Resource shares were hit across the region, as the U.S. dollar higher against major global currencies, in a “risk-off” trade, due to the concerns over European sovereign debt troubles. Stocks like Jiangxi Copper dropped 3.0%, PetroChina and Zijin Mining Group each lost 2.0%.  In China the SSE Composite closed down -1.9% (or -56 points) at 2,839, while in Hong Kong the Hang Seng Index was down -2.0% (or -479 points) at 23,214 and in Japan the Nikkei 225 Index was up marginally 0.2% (or 15 points) at 9,812.

    Commodities

    The Dollar Index down marginally -0.2% at 79.08 on higher Euro, while the Australian Dollar last traded higher at 97.87. Commodities were generally lower.

    Benchmark crude NYMEX for December delivery was down -2.3% (or $US-1.86) to settle at $US80.48. Copper prices backed-off 2-year highs, Copper for December delivery  was up marginally 0.1% (or 0.5 cents) at $US3.7330.  Gold prices off all-time highs again, with December gold was down marginally -0.1% at $US1,333.90.

    Key International News Drivers Today

    US - Dow Jones Index is testing its key 11000 level. Investors spooked by EU debt and Chinese prospect of slowdown.
    EU –  Investor concerns over sovereign debt problems in the euro zone continues.
    CHINA - Government stands firm on access to credit. China is set to overtake the US as the world’s largest economy according to a report from Standard Chartered.
    JAPAN – Market backs-off four months highs.

    Markets Overview

    Market

    Movement

    The Dow Jones Industrial Average

    Down  -0.1% (or -16 pts)  at 11,008

    The S&P 500

    Flat at 1,179

    The Nasdaq

    Up 0.3% (or 6 pts)  at 2,476



    The FTSE 100

    Up  Marginally 0.2% (or 11 pts)  at 5,693

    The German DAX

    Up 0.6% (or 37 pts)  at 6,700

    The Fench CAC

    Up 0.8% (or 30 pts)  at 3,810



    The Dollar Index

    Down  Marginally -0.16% at 79.08

    The Australian Dollar

    Last traded at 97.87

    The Commodities Index

    Down -0.3% at 295.4



    Crude Oil Futures

    Down -2.3% at $80.48

    Gold Futures

    Down  Marginally -0.1% at $1,333.90

    Copper Futures

    Up  Marginally 0.1% at $3.7330

    SPI Futures

    Flat (or -1 pts) at 4,635





    Market

    Movement

    SSE Composite (China)

    Down -1.9%  at 2,839

    Hang Seng Index (Hong Kong)

    Down -2.0%  at 23,214

    Nikkei 225 Index (Japan)

    Up  Marginally 0.2%  at 9,812

    ASX News Today

    The SPI Futures is below its key pivot level of 4725 from last week and the ASX is set to open flat as the SPI Futures closed flat (or -1 pts) at 4,635. The key levels for our index today are 4680 and 4600. M&A activity continues to drive specific stocks. The ASX is set to open flat today, with subdued leads from overseas markets. Trade with protection, honor your stops or use options o protect your portfolio.

    ALL- Aristocrat Leisure, the embattled gaming machine maker is being sued by a US company alleging patent infringements over Aristocrat’s Viridian poker machines.

    AAX- Ausenco the engineering group, has returned to growth, with a profit expected in the 2H of 2010.

    AWB- AWB the grain handler will pay a special dividend of 15 cents per share fully franked, having received a favourable ruling from the Australian Tax Office.

    CAB- Cabcharge Australia the Taxi fare payment firm, remains cautiously optimistic about the domestic economic outlook.

    CZA- Coal of Africa the Australia-based firm, environmental experts from UNESCO will assess the impact of mining at the African World Heritage site.

    FBU- Fletcher Building sees the rebuilding of earthquake-hit Canterbury and remediation of tens of thousands of leaky homes as drivers of its growth.

    MCC- Macarthur Coal is forecasting 1H11 profits strongly up on a year earlier, on the back of demand growth and a tightening market.

    NMS- Neptune Marine Services is in a trading halt, pending a capital raising.

    QAN- Another Qantas jet has been involved in a safety scare, after being struck by lightning.

    SPH- Sphere Minerals has changed its board after a takeover offer by Xstrata became unconditional.

    TAH- Tabcorp Holdings has completed the final stage of its equity raising, with its retail bookbuild oversubscribed.

    TEL- Telecom has suspended its dividend re-investment plan for its 1Q dividend, blaming uncertainty about the NZ government broadband plans.

    TLS- Draft laws to structurally separate Telstra, which will pave the way for the rollout of the NBN through the structural separation of Telstra, have passed the lower house.

    WAN- West Australian Newspapers Ltd (WAN) has reported a 2.6 percent rise in 1Q11 net profit as advertising revenue increased.

    WEB-  Webjet the online travel agent, maintains its earnings guidance for 1H11, and confirms demand for air travel has improved, particularly among business passengers.

    Economic Reports :

    International Merchandise Imports for October
    Foreign Exchange Transactions and Holdings of Official Reserve Assets for October

    Companies:

    Australian Worldwide Exploration (AWE) Full year 2010 AGM
    Brambles Industries Ltd (BXB) Full year 2010 AGM
    Challenger Financial Services (CGF) Full year 2010 AGM
    Infigen Energy (IFN) Full year 2010 AGM
    Intoll (ITO) Full year 2010 AGM
    Kingsgate Consolidated (KCN) Full year 2010 AGM
    New Hope Corp Ltd (NHC) Full year 2010 AGM
    Sonic Healthcare (SHL) Full year 2010 AGM
    St Barbara Limited (SBM) Full year 2010 AGM
    West Australian Newspaper (WAN) Full year 2010 AGM
    Woolworths Ltd (WOW) Full year 2010 AGM

    Ex-Dividends

    Incitec Pivot (IPL)

    Market Summary

    ASX – to open flat
    US & UK/Europe – EU higher, US flat
    US ADRs –  Mixed

    BHP flat &
    RIO flat
    AWC down 1.9%
    ANZ up 0.4% &
    NAB up 0.6%
    NEM up 0.3%
    JHX down 0.1%
    NWS up 0.3%

    Commodities Stock Index up 0.2%
    Gold Stocks Index up 0.3%
    Oil Stocks Index flat

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: Chinese and U.S. Manufacturing Continue Expansion

    Tuesday, November 2nd, 2010

    Chinese and U.S. Manufacturing Continue Expansion

    U.S. markets has early gains after manufacturing in China and the U.S. expanded more than forecast.  However caution resurfaced as investors are hanging out for a decision on the scope of the second round of stimulus for the US recovery (QE2), expected to be resolved by the Fed Reserve at next week’s meeting (3rd November).  Asian stock markets jumped higher, on strong manufacturing data from China and India.  However, China continues to test key overhead resistance of a down-trend line that has been in place since mid-2009.  European stock markets rose marginally.  Miners and Energy companies are likely to be in focus on the ASX today, trading volumes are expected to be subdued.

    The SPI Futures is below the key resistance level of 4725 the ASX is set to open lower as the SPI Futures closed down -0.4% (or -17 pts) at 4,683.  The key levels for our index today are 4725 and 4650. M&A activity continues to drive specific stocks.    Trading volumes on the ASX is likely to be flat on this Melbourne Cup day and the busy news week in the U.S.  Miners and Energy companies should lead any gains.  The RBA will decide on interest rates today, economists are forecasting a hold.  Our view is that if they do not raise rates today then the next rate hike will not come until next year.

    US Markets

    U.S. stocks end flat.  The  U.S. Institute for Supply Management’s factory index, a leading economic indicator, increased to 56.9 in October (vs 54.4 in September), the highest level since May. A reading greater than 50 signal growth, economists were forecasting a decline to 54.  The better-than-expected data lifted the mining sector, which had already been supported  by strong Chinese manufacturing data published overnight, as Xstrata was 3.7% and Kazakhmys PLC gained 1.8%.  The energy sector also saw early gains.  Investors initially bought up stocks, but caution then resurfaced, on this big news week, where the Federal Reserve is expected to announce more stimulus (QE2) (at the meeting on 2nd and 3rd November) and the mid-term Federal elections will lead to a Republican takeover of the House of Representatives. There were no stand out sectors.  The Dow closed up marginally 0.1% (or 6 points) at 11,125, while in the broader market the S&P 500 index up marginally 0.1% (or 1 points) at 1,184 and the tech-heavy Nasdaq ended down marginally -0.1% (or -3 points) at 2,505.

    European Markets

    European bourses end slightly higher. They too had a volatile session as investors and ended on the side of caution,  as they awaited the verdict of the U.S. Federal Reserve on a potential new round of quantitative easing (QE2), expected to be resolved by the Fed Reserve at next week’s meeting (3rd November).  Markets traded opened higher after manufacturing in China and the U.S. expanded more than forecast, miners led the gains with Kazakhmys and Xstrata shares higher as copper jumped, however, profit-takers stepped in later in the session.   In Germany, shares of truck maker Man gained 2% after it was upgraded to buy at RBS on the expectation of a continued recovery in the global truck market. In London the FTSE 100 index closed up 0.3% (or 19 points) at 5,695, the German DAX up marginally 0.1% (or 3 points) at 6,605, while in France the CAC was up marginally 0.2% (or 8 points) at 3,840.

    Asian Markets

    Asian stock markets rose strongly.   Markets rose on strong manufacturing data from China and India.  Shares in China and Hong Kong rose, led by commodities and financial sectors, after the release of the October purchasing managers’ index (PMI) showed a rise to 54.7 in October (up from 53.8).  This confirms that China is managing to engineer its slowdown successfully and there may be another rate rise in China by years end.  Japanese markets remain under pressure, weighed by concerns over the outlook for earnings due to the strong yen (at fresh 15-year highs).  In China the SSE Composite closed up 2.5% (or 75 points) at 3,054, while in Hong Kong the Hang Seng Index was up 2.4% (or 557 points) at 23,653 and in Japan the Nikkei 225 Index was down -0.5% (or -48 points) at 9,155.

    Commodities

    The Dollar Index flat at 77.29, while the Australian Dollar last traded steady at 98.27.   Commodities were generally higher.

    Benchmark crude NYMEX for December delivery  was up 1.8% (or $US1.50) to settle at $US82.93. Copper prices rose, Copper for December delivery  was up 1.3% (or 4.7 cents) at $US3.7810 .  Gold prices fell, with December gold was down -0.5% at $US1,351.30.

    Key International News Drivers Today

     

     
    US -  Dow Jones around 2-year highs.  Federal Reserve’s FOMC meeting, Non-Farm Payrolls and mid-term elections this week are crucial.
    EU -   Investor sentiment in Europe remains cautious.
    CHINA – Chinese market outperforms, testing key levels. Government stands firm on access to credit.
    JAPAN – Industrial output down 1.9%, CPI  dropped for the 19th straight month.
     

    Markets Overview


    Market

    Movement

    The Dow Jones Industrial

     Up  0.1% (or 6 pts)  at 11,125 

    The S&P 500                             

     Up  0.1% (or 1 pts)  at 1,184 

    The Nasdaq                              

     Down  -0.1% (or -3 pts)  at  2,505      

     

     

    The FTSE 100                           

     Up 0.3% (or 19 pts)  at 5,695 

    The German DAX               

     Up  0.1% (or 3 pts)  at 6,605 

    The Fench CAC             

     Up  0.2% (or 8 pts)  at 3,840 

     

     

    The Dollar Index 

     Up  Marginally 0.03% at 77.29

    The Australian Dollar 

     Last traded at 98.27

    The Commodities Index

     Up 0.29% at 301.5

     

     

    Crude Oil Futures      

     Up 1.8% at $82.93

    Gold Futures             

     Down -0.51% at $1,351.30

    Copper Futures             

     Up 1.25% at $3.7810

    SPI Futures              

     Down -0.4% (or -17 pts) at 4,683

     

     

     

     

    Market

    Movement

    SSE Composite (China) 

     Up 2.5%  at 3,054 

    Hang Seng (Hong Kong) 

     Up 2.4%  at 23,653

    Nikkei 225 Index (Japan) 

     Down -0.5%  at 9,155 



    ASX News Today
    The SPI Futures is below the key resistance level of 4725 the ASX is set to open lower as the SPI Futures closed down -0.4% (or -17 pts) at 4,683.  The key levels for our index today are 4725 and 4650. M&A activity continues to drive specific stocks.    Trading volumes on the ASX is likely to be flat on this Melbourne Cup day and the busy news week in the U.S.  Miners should lead any gains.  The RBA will decide on interest rates today, economists are forecasting a hold.  Our view is that if they do not raise rates today then the next rate hike will not come until next year.
     
    AIO- Asciano Group the ports and rail operator, has become more cautious about its FY outlook as it hauled more coal in the September quarter, but not as much as expected.
     
    CQT- Conquest Mining Ltd is preparing to make the leap from explorer to gold producer, with its purchase of the Pajingo gold mine close to settlement.

    CUX- Crossland Uranium Mines has found rare earths deposits in its Charley Creek project area in the Northern Territory.

    DOW- Downer EDI says it has signed a maintenance agreement with Main Roads WA worth about $50 million a year for 5 years.

    GPG- Guinness Peat Group has sold a 19.9 per cent stake in The Maryborough Sugar Factory at $4.00.

    LEI- Spanish constructor ACS will be willing to guarantee in writing the independence of Leighton Holdings as part of a takeover of the contractor’s German parent Hochtief AG.

    ORG- A board of inquiry in NZ is proposing to grant consent for Contact Energy’s 250 megawatt Tauhara 2 geothermal development, near Taupo.

    PBG- Pacific Brands will sell its Dunlop Foams and Sleepmaker businesses to Sleepyhead for gross proceeds of around $55 million.

    TEN- Ten Network has offered James Packer and Lachlan Murdoch directorships, as Mr Murdoch is in talks to buy half of Mr Packer’s new stake in the television broadcaster.

    UGL- UGL is expecting a “healthy expansion” across its rail business in FY11, saying it has secured rail freight orders worth about $250 million with leading rail operators and resource companies.

    WBC- BT Investment Management, a Westpac subsidiary, increased FY11 profit 72 percent as equity and credit markets improved.

    WCL- Westside Corporation say a local subsidiary of Japan’s Mitsui group says it will exercise a farm-in option to buy 49 per cent of WestSide Corp’s Galilee Basin tenements.

     

    Economic Reports :
    RBA – Interest Rate decision (estim. 4.5%)
     

    Companies:

    None
     
    Ex-Dividends
    None
     
    Market Summary

    ASX – to open flat
    US & UK/Europe – Subdued
     

    US ADRs –  Mixed!!…

     
    BHP up 0.9% & RIO up; AWC flat
    ANZ up 0.3% & NAB up 1.2%
    NEM  up 0.6%, JHX down 1.1%, NWS up 0.6%
     
    Commodities Stock Index up 0.7%
    Gold Stocks Index down 0.1%
    Oil Stocks Index up 0.4%

     

    By Michael Hevern
    Head of Research

      

      

     
     

     

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    Stock Market Analysis: Markets Lower QE2 Expectations

    Thursday, October 28th, 2010

    Markets Lower QE2 Expectations 

    US stocks ended mixed overnight. The markets were sold off initially, but pared losses in later trading, as investors reassess their expectations from the QE2 stimulus.  Commodities prices fell on a stronger US dollar,  Asian markets fell and the Chinese market continues to test the key overhead resistance that has been in place since mid-2009.  European stock markets closed lower despite the U.K third-quarter GDP growth data surpising to the upside.  The ASX is likely to recover some of the losses from yesterday, but miners will be under pressure.

    The SPI Futures is below the key resistance level of 4720, but closed up 0.3% (or 13 pts) at 4,656. The ASX is set to open higher. The key levels for our index today are 4700 and 4620. M&A activity continues to drive specific stocks.  The benign inflation figures released yesterday will relieve the upward pressure on interest rates, see yesterday’s article for details. 

    Yesterday the Australian share market’s reaction to the inflation data was delayed by a system error at the Sydney Futures Exchange, which caused trading in all futures contracts to be halted for about 90 minutes. This may have exaggerated the sell-off. 

    Shares in ASX were down again yesterday as political and regulatory opposition mounted to Singapore Exchange’s $8.3 billion dollar bid, and the focus on this deal looks set to continue. 

    The market will also be facing another busy day of reporting, see below for details.

    US Markets

    US stocks ended mixed. The markets were sold off initially after a Wall Street Journal article reported there was confusion about the magnitude of the proposed QE2, expected to be implemented at the November FOMC meeting next week.  Traders and investors are racheting down their expectations for the Fed stimulus spending in QE2, as the Fed is now expected to unveil a program of US Treasury bond purchases of around $US250 billion dollars over several months, this in contrast to QE1 in which the Fed purchased nearly $2 trillion of bonds during the financial crisis (GFC). 

    Commodity prices continued to fall due to the strengthening US dollar.  Crude prices dragged energy stocks lower after weekly oil inventory numbers showed US stockpiles of crude oil rising by 5 million barrels.  The Dow Jones pared its triple digit early losses in late trading.  The sector falls were led by the Materials (down 0.9%), Industrials (down 0.7%) and Energy (down 0.4%) sectors. The Tech sector led the late recovery. 

    The Dow closed down -0.4% (or -43 points) at 11,126, while the S&P 500 index fell -0.3% (or -3 points) to 1,182 and the tech-heavy Nasdaq ended marginally higher, up 0.2% (or 6 points) at 2,503.

    European Markets

    European stocks closed lower. Falls were led by selling of the basic resources stocks on the back of lower commodities prices.  In London the markets were lower as miners were sold-off, as copper dropped for a second session. In Germany the markets ended lower, led by steelmaker ArcelorMittal and SAP after disappointing earnings.  In London the FTSE 100 index closed down -1.1% (or -61 points) at 5,646, the German DAX was down -0.7% (or -46 points) at 6,568, and in France the CAC was down -1.0% (or -37 points) at 3,815.

    Asian Markets

    Asian markets ended lower.  Investors are concerned that the US quantitative easing (QE2) might not be as large as expected, (see Wall Street Journal news above).  In Japan, auto shares rose with Toyota Motor and Honda Motor up over 1.5%, helped by the weaker yen.  A rebound in the US dollar also hurt mining stocks in Hong Kong and China: in Hong Kong PetroChina lost 4.3%, Cnooc dropped 2.5%, Sinopec shed 3.4%, and Yunnan Copper dropped 4.8%.   Energy stocks also fell on the lower oil price.  The Chinese market is testing key overhead resistance of a down-trend line that has been in place since mid-2009.  In China the SSE Composite closed down -1.5% (or -44 points) at 2,997, while in Hong Kong the Hang Seng Index was down -1.9% (or -437 points) at 23,165 and in Japan the Nikkei 225 Index was down marginally 0.1% (or 10 points) at 9,387.

    Commodities

    The Dollar Index was up 0.5% at 78.12 on the lower Euro, while the Australian Dollar last traded lower at 96.53.  Commodities were generally lower.

    Benchmark crude NYMEX for December delivery was down -0.7% (or $US-0.58) to settle at $US81.97. Copper prices were down, with Copper for December delivery down -2.3% (or -9.0 cents) at $US3.7795.  Gold prices were lower, with December gold down -1.2% at $US1,322.70.

    Key International News Drivers Today

    US -  Dow Jones around 2-year highs.  Lower commodities prices due to the strengthening US dollar.
    EU -   UK third-quarter GDP growth data surprised to the upside.  Commodities lower as the US dollar strengthened.
    CHINA – In China profit-takers stepped in, and the government stands firm on access to credit.
    JAPAN – Exporters weigh as Yen reaches 15-years highs.
     

    Markets Overview


    Market

    Movement

    The Dow Jones Industrial Average

     Down -0.4% (or -43 pts)  at 11,126

    The S&P 500                             

     Down -0.3% (or -3 pts)  at 1,182 

    The Nasdaq                              

     Up  Marginally 0.2% (or 6 pts)  at 2,503    



    The FTSE 100                           

     Down -1.1% (or -61 pts)  at 5,646 

    The German DAX               

     Down -0.7% (or -46 pts)  at 6,568

    The Fench CAC             

     Down -1.0% (or -37 pts)  at 3,815



    The Dollar Index 

     Up 0.53% at 78.12

    The Australian Dollar 

     Last traded at 96.53

    The Commodities Index

     Down -0.71% at 299.1



    Crude Oil Futures      

     Down -0.7% at $81.97

    Gold Futures             

     Down -1.18% at $1,322.70

    Copper Futures             

     Down -2.33% at $3.7795 

    SPI Futures              

     Up 0.3% (or 13 pts) at 4,656 





    Market

    Movement

    SSE Composite (China) 

     Down -1.5%  at 2,997 

    Hang Seng Index (Hong Kong) 

     Down -1.9%  at 23,165 

    Nikkei 225 Index (Japan) 

     Down  Marginally 0.1%  at 9,387 

    ASX News Today

      

     
    AIO- Asciano Group, the ports and rail operator, has become more cautious about its FY outlook as it hauled more coal in the September quarter, but not as much as expected.

    ANZ- ANZ Bank posts record profits and will spend $250 million to increase its stake in Shanghai Rural Commercial Bank.

    ASX- ASX Ltd has fallen for the second consecutive day over concerns the proposed merger with the Singapore exchange may not be approved by the regulators.

    BHP- The Saskatchewan premier said Australia will not approve of BHP Billiton’s foreign takeover of Potash Corp and Canada should not either.

    DOW- Downer EDI has been awarded a $190 million contract to upgrade Queensland Rail’s fleet of high-speed passenger tilt trains.

    FAN- Fantastic Holdings, the furniture retailer, expects a challenging FY11 with a higher Australian dollar pressuring margins.

    FMG- Fortescue Metals has priced its senior unsecured notes issue, saying the response from financiers has been positive.

    IAG- Insurance Australia had a “solid” first quarter of FY11, as it reaffirmed guidance for the full year.

    MCC- Macarthur Coal expects a better 1H11 profit than for the same period last year due to higher US dollar sales prices, partially offset by a strong Australian dollar and slightly increased mining prices.

    NAB- National Australia Bank has posted a 63 percent rise in net profit due to lower bad debt charges.

    ORG- Origin Energy, the energy producer and retailer, had a record September quarter, with production up 45 percent on the pcp in 2009 and 13 percent higher than the previous quarter. Sales revenues jumped 52 percent on the pcp in 2009 and 22 percent higher than the previous quarter.

    PDN- Paladin Energy is in a trading halt, as it plans to issue $303 million of convertible bonds, allowing it to retire other bonds and to fund a possible expansion of an African mine.

    SGM- Sims Metal, the metal recycler, has agreed to purchase the assets of Queensland-based Commercial Metal Recycling Services (CMRS).

    SGP- Stockland has sold its 13.1 percent holding in GPT Group, with a loss of $208 million.

    SXL- Southern Cross Media Group is “cautiously optimistic” about the 2Q of the 2011 financial year, but disappointed with its earnings from the Commonwealth Games in Delhi.

    TOL- The board of Toll Holdings, the transport and logistics firm, is starting an orderly succession for managing director Paul Little.

     
    Economic Reports :
    RBA – Reserve Bank of Australia Annual Report
    AOFM auction of Treasury Notes of $1 billion and $600 million maturing on 28 Feb’11

     

    Companies:

    AMP Ltd  (AMP)                                       Q3 2010 Trading statement
    ANZ Bank (ANZ)                                       Full year 2010 Results
    Austar United Communications (AUN)  Q3 2010 Earnings conference call
    Charter Hall Office REIT (CQO)           Full year 2010 Unitholder Briefing
    Kingsgate Consolidated Ltd (KCN)    September Quarterly Report
    Oceanagold (OGC)                                    Q3 2010 Results
    Roc Oil Ltd (ROC)                                     Q3 2010 Activities Report
     
    APA Group (APA)                                     Full year 2010 AGM
    GWA International Ltd (GWT)             Full year 2010 AGM
    Orbital Corporation Ltd (OEC)             Full year 2010 AGM 

    Newcrest Mining Ltd (NCM)                 Full year 2010 AGM 

    Service Stream Ltd (SSM)                      Full year 2010 AGM

     

    Ex-Dividends
    Adtrans Group (ADG)
    Ten Network Holdings (TEN)
     
    Market Summary

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

    US ADRs –  Mixed

     
    BHP down  1.8% & RIO down; AWC down 2.8%
    ANZ up 0.5% & NAB up 1.2%
    NEM  down 1.8%, JHX down 4.4%, NWS down 0.5%
     
    Commodities Stock Index down 0.6%
    Gold Stocks Index down 1.7%
    Oil Stocks Index down 0.8%

     

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: ASX set for a flat start

    Monday, October 25th, 2010

    Markets Mixed Friday, But Higher For the Week

    US stocks closed generally higher, ahead of another busy week of corporate earnings.   Asian stock markets ended flat, ahead of the G-20 on the weekend. The Chinese market is testing key overhead resistance from a down-trend line that has been in place since mid-2009.  European stocks finished lower on Friday, but up for the week.  German markets remain at fresh 52-week highs.  The ASX is likely to trade flat, as commodities prices were mixed.   There is major US economic data due out this week, including durable-goods orders and gross domestic product.

    The SPI Futures is below the key resistance level of 4720 and the ASX is set to open flat as the SPI Futures closed flat at 4,645.  The key levels for our index this week are 4700 and 4600. M&A activity continues to drive specific stocks.  The ASX is set to trade flat today, with little direction from Europe and the US, and reporting from some Aussie bank majors due later in this week.  Options volatilty is subdued at the moment, which gives investors access to “cheap” protection, so investors may consider taking this opportunity to protect their portfolios.

    US Markets

    US stocks closed mixed Friday, ahead of another busy week of corporate earnings.  There is major US economic data due out this week, including durable-goods orders and gross domestic product.   US stocks fluctuated as improving corporate earnings offset concerns over the prospect of a “currency war” as central banks across the globe race to devalue their domestic curriencies.  Nearly 75 percent of the S&P 500 companies that have reported 3Q results thus far this earnings season have topped analysts’ estimates, but investors remain concerned over currencies and the weak economic backdrop.  Technology stocks were boosted by encouraging earnings from stocks like Riverbed Technology, which makes products that reduce the load on networks (shares surged 18%), Compuware, CA Inc. and Amazon.com also reported earnings that beat analyst estimates. However Amex shares fell as they reported weak demand for new loans, and Verizon disappointed over slowing wireless subscriber growth.  Schlumberger (shares up 5.4%) boosted the energy sector after the oilfield services company’s 3Q earnings more than doubled.  The Energy sector (up 0.7%) and Consumer Discretionary sector (up 0.6%) supported the market, while the Materials sector (down 0.7%) weighed.  The Dow and the S&P 500 closed up for a third consecutive week, with the Dow up 0.6%, while the S&P 500 gained 0.6% and the tech-heavy Nasdaq added 0.4% for the week. The Dow closed down 0.1% (or -14 points) at 11,147, while in the broader market the S&P 500 index was up 0.2% (or 2 points) at 1,183 and the Nasdaq ended up 0.8% (or 19 points) at 2,479.

    European Markets

    European stocks finished lower on Friday, but were up for the week.  In London the market declined, led by the mining companies, after analyst downgrades. On a positive note Betfair surged 19 percent on its first day of trading after raising $330 million in its London IPO.  German markets remain at fresh 52-week highs.  The major issue for discussion at the G-20 was the debate on trade concerns over possible exchange-rate imbalances.  The financiers at the G-20 did agee to “move towards” market determined exchange rates that “refrain from competitive devaluations of curriencies”.  German Economy Minister Rainer Bruederie said that the US Federal Reserve is heading the “wrong way” by “adding liquidity” with monetary easing, as it amounts to a manipulation of the dollar.  For the week German markets rose 1.7 percent, the UK’s FTSE gained 0.7 percent and the French market rose 1.1 percent.  In London the FTSE 100 index closed down -0.3% (or -17 points) at 5,741, the German DAX was flat (or down -5 points) at 6,605, while in France the CAC was down -0.3% (or 8 points) at 3,869.

    Asian Markets

    Asian stock markets ended flat.  Japanese investors were cautious due to the strength of the yen, ahead of the G-20 meeting and this week’s earnings reports.  Technology shares advanced, as LG posted better-than-expected earnings. China’s Shanghai Composite was down 0.3% and Hong Kong’s Hang Seng Index edged down 0.6%.  Miners and banking stocks led Chinese markets lower on continued profit-taking. Also weighing on banks were concerns over bad loans in the property market following the recent tightening measures.  The Chinese market is testing key overhead resistance that has been in place since mid-2009.  In China the SSE Composite closed down -0.3% at 2,975, while in Hong Kong the Hang Seng Index was down -0.6% at 23,518 and in Japan the Nikkei 225 Index was up 0.5% at 9,426.

    Commodities

    The Dollar Index was flat at 77.47 on a steady Euro, while the Australian Dollar last traded lower at 98.25.

    Commodities were mixed. Benchmark crude NYMEX for December delivery was flat (or up $US0.03) to settle at $US80.59. Copper prices rose: Copper for December delivery was up 0.4% (or 1.7 cents) at $US3.7915.  Gold prices backed off record highs, and are now around the key $US1,380 level. December gold was down -$8.70 at $US1,317.

    Key News International Drivers Today

    US -  Dow Jones pushes towards 2-year highs. There is major US economic data out this week, including durable-goods orders and gross domestic product.
    EU -   German markets remain at fresh 52-week highs.
    CHINA – China reported its economy grew at a moderate and robust pace in the third quarter. Government stands firm on access to credit.
    JAPAN – Exporters weigh as Yen at 15-years highs.
     

    Markets Overview

     

    Market

    Movement

    The Dow Jones Industrial Average

     Down 0.1% (or -14 pts)  at 11,132 

    The S&P 500                             

     Up  Marginally 0.2% (or 2 pts)  at 1,183      

    The Nasdaq                              

     Up   0.8% (or 19 pts)  at 2,479

     

     

    The FTSE 100                           

     Down -0.3% (or -17 pts)  at 5,741

    The German DAX               

     Flat  (or down -5 pts)  at 6,605 

    The Fench CAC             

     Down -0.3% (or down -8 pts)  at 3,869 

     

     

    The Dollar Index 

     Flat at 77.47

    The Australian Dollar 

     Last traded at 98.25

    The Commodities Index

     up 0.6% at 297.2

     

     

    Crude Oil Futures      

     Flat at $80.59 

    Gold Futures             

     Down $8.70 at $1,317

    Copper Futures             

     Up 0.4% at $3.7915

    SPI Futures              

     Flat at 4,645

     

     

     

     

    Market

    Movement

    SSE Composite (China) 

     Down -0.3%  at 2,975 

    Hang Seng Index (Hong Kong) 

     Down -0.6%  at 23,518

    Nikkei 225 Index (Japan) 

     Up 0.5%  at 9,426

    ASX News Today

    The SPI Futures is below the key resistance level of 4720, and the ASX is set to open flat as the SPI Futures closed flat at 4,645.  The key levels for our index this week are 4700 and 4600. M&A activity continues to drive specific stocks.  The ASX is set to trade flat today, with little direction from Europe and the US and reporting from some Aussie bank majors due later in the week.  Options volatilty is subdued at the moment, which gives investors access to “cheap” protection, so investors may consider taking this opportunity to protect their portfolios. 

     
     
    AHD- Amalgamated Holdings, the entertainment, hospitality and leisure operator, has booked a profit of $60.6 million on the sale of its 49 per cent share of MAF Greater Union LLC in the United Arab Emirates (UAE).
     
    ASX – The Singapore Stock Exchange is expected to launch a takeover bid for the ASX on Monday after both stocks went into trading halts on Friday.

    BHP- BHP chairman Jac Nasser says BHP would pull out of a $US40 billion bid for Canada’s Potash Corp if it proves too expensive.  While Saskatchewan’s premier says the province will not support the bid.

    FGL- Fosters says the Australian wine industry is moving closer towards the end of an oversupply of grapes and wine.

    MAP- MAp says Sydney Airport has increased its earnings by 14.2 per cent so far in 2010 on strong passenger growth, commercial expansion and cost control.

    STO- Santos now has the Australian government’s environmental impact approval for its proposed gas-export terminal.

    TSM- ThinkSmart, the computer and office equipment financier, has launched its “Infinity” consumer finance product in the UK.  Shares jumped 10%.

    WPL- Woodside says 3Q production volumes grew by 5 percent, but sales revenue was down 4 percent on the previous quarter.  They are evaluating the cost and schedule of the $13 billion first phase of its Pluto LNG project.

     
     
    Economic Reports :
    Q3      PPI (Estim. QoQ +0.6% & YoY +1.4%)
    RBA – Reserve Bank of Australia Governor Glenn Stevens speaks in Canberra
    Companies:
    Atlas Iron Ltd  (AGO)          September Quarterly Report
    Macarthur Coal (MCC)        September Quarterly Report 

     

    Pacific Brands Ltd (PBG)             Full year 2010 AGM
    TABCORP Holdings (TAH)         Full year 2010 AGM
    Wotif com Holdings Ltd  (WTF)   Full year 2010 AGM
     
    Ex-Dividends
    Austereo Group Ltd (AEO)    Full year 2010 Ex-dividend date
    Halcygen Pharma (HGN)
    Market Summary


    ASX – to open flat

    US & UK/Europe – Mixed
     

    US ADRs –  Mixed

     
    BHP up 0.1% & RIO up; AWC up 1.3%
    ANZ up 0.3% & NAB down 0.5%
    NEM up 0.3%, JHX up 2.4%, NWS down 0.2%
     
    Commodities Stock Index up 0.7%
    Gold Stocks Index up 0.8%
    Oil Stocks Index up 0.6%

     

    By Michael Hevern
    Head of Research
     

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