Posts Tagged ‘S&P500’

Stock Market Analysis: US GDP Report Gives Pause; ASX to Trade Lower

Friday, July 30th, 2010

Stock Market Analysis

US GDP Report Gives Pause; ASX to Trade Lower

U.S. stocks finished lower overnight for a second day, as disappointing revenue from utilities and consumer companies weighed. European markets continued lower.  Asian markets bucked the trend to the positive.  A weaker US dollar also helped commodity prices, however our markets will likely see further profit-taking today.

The SPI Futures is above the key level of 4400 the ASX is set to open lower as the SPI Futures closed down -0.5% (or -21 pts) at 4,473.   Key levels today are 4500 and 4400, with pivot around 4450. Mining and Energy stocks may offer support with improving commodities prices overnight.  M&A activity continues to drive specific stocks.

US Markets

The S&P 500 remains only just above the key 1100 level. The Dow clawed back from an initial 100 point selloff.  U.S. stocks still finished lower overnight for a second day, as disappointing revenue from utilities and consumer companies overshadowed some other strong earnings reports.  The market sentiment was under pressure after disappointing second-quarter revenue and guidance reports hit the utilities, consumer staples and technology sectors. Companies like Akamai Technologies, Nvidia, Symantec, and Colgate disappointed either on their profit margins, earnings or earnings forecasts.  However the market is on track to close out the best month since July 2009, with the Dow currently up 7 percent for the month.  Oil prices rose overnight on better-than-expected earnings from Exxon Mobil Corp and Southwest Airlines. The Dow closed down -0.3% (or -31 points) at 10,467, while in the broader market the S&P 500 index down -0.4% (or -5 points) at 1,102 and the tech-heavy Nasdaq ended down -0.6% (or -13 points) at 2,252.  The sectors weighing most on the indices were utilities and consumer staples sectors, while financials and materials sectors provided some support.  The key news out tonight is the U.S.gross domestic product data release.

European Markets

European stocks traded lower, despite a raft of impressive earnings, particularly in the autos and telecommunications sectors. Better-than-expected confidence data helped, with the euro-zone economic sentiment indicator rose to 101.3 from 99, its highest level since March  2008. The Euro traded above $US1.31 for the first time since May, confirming the improving investor sentiment after the successful Bank “stress tests” report.  The European markets have also benefited of late from the successful government debt auctions in countries like Spain and Portugal, where much of the sovereign debt concerns were focused.  Mitsubishi and Volkswagen AG turned in solid second-quarter performances, crediting healthy sales in China, and Nissan saw its quarterly sales jump 35.3 percent.  Telecoms helped the markets with France Telecom rising 5.5%, after it reported a drop in second-quarter earnings and revenue but said trends are improving across markets, and Spanish telecoms company Telefonica gaining 3.2%, after its second-quarter net profit rose 16% as revenue growth in its Latin American business compensated for a weaker domestic market.

In London the FTSE 100 index closed down marginally -0.1% (or -6 points) at 5,314, the German DAX down -0.7% (or -44 points) at 6,135, while in France the CAC was down -0.5% (or 18 points) at 3652.

Asian Markets

Asian markets were mixed.  In China the Shanghai Composite Index of equities continued to rise, as the central bank said China’s economic fundamentals are “good”.  Industrial metals prices continued to rise on the prospect of improving demand.  Japanese stocks fell for the first time in five days, weighed down by Panasonic down 7.7 percent after reporting is will raise capital for acquisition of Sanyo, however shipping lines rose as they raised their full-year profit forecasts.  In China the SSE Composite closed up 0.6% (or 14 points) at 2,648, while in Hong Kong the Hang Seng Index was flat (down 3 points) at 21,094 and in Japan the Nikkei 225 Index was down -0.6% (or -57 points) at 9,696.

Commodities

The Dollar Index down -0.6% at 81.65 on higher Euro, while the Australian Dollar last traded higher at 89.08. Commodities were generally higher.

Oil prices rose due to the lower US dollar.  The benchmark crude NYMEX for September delivery was higher 1.7% (or $US1.37) to settle at $US78.36. Copper continued to shine rising to an 11-week high on signs growth is sufficient in China and the U.S. to spur demand. Copper prices are trading well above the key $US3.00 a pound, Copper for September delivery delivery  was up 1.4% (or 4.4 cents) at $US3.2850 a pound, the highest settlement price since mid-May.  Gold rose, with August gold was uo $US8.80 at $US1,171.20 an ounce.

Key News International Drivers Today

US –  U.S.gross domestic product data release. S&P 500 companies continue to report earnings this week.
EU – M&A activity. Bank shares rose after the Basel Committee on Banking Supervision relaxed some of its proposed capital and liquidity rules.
CHINA –  Economic fundamentals are “good”.  Industrial metals prices rise.  JP Morgan says equities starting to look attractive.
JAPAN –   companies continue to report earnings this week.

Markets Overview

US GDP Report Gives Pause; ASX to Trade Lower

Market

Movement

The Dow Jones Industrial Average

Down -0.3% (or -31 pts)  at 10,467

The S&P 500

Down -0.4% (or -5 pts)  at 1,102

The Nasdaq

Down -0.6% (or -13 pts)  at 2,252

The FTSE 100

Down  Marginally -0.1% (or -6 pts)  at 5,314

The German DAX

Down -0.7% (or -44 pts)  at 6,135

SSE Composite (China)

Up -0.5% (or 14 pts)  at 2,648

The Dollar Index

Down -0.64% at 81.65

The Australian Dollar

Last traded higher at 89.08

The Commodities Index

Up 1.52% at 270.2

Crude Oil Futures

Up 1.7% at $78.27

Gold Futures

Up $8.80 at $1,171.20

Copper Futures

Up 1.36% at $3.2850

SPI Futures

Down -0.5% (or -21 pts) at 4,473

Market

Movement

SSE Composite (China)

Up 0.6% at 2,648

Hang Seng Index (Hong Kong)

Down  Marginally 0.0% at 21,094

Nikkei 225 Index (Japan)

Down -0.6% at 9,696
SPI: Above key Level 4400 – SPI down 0.5% at 4,479….

ASX News Today

The SPI Futures is above the key level of 4400 the ASX is set to open lower as the SPI Futures closed down -0.5% (or -21 pts) at 4,473.   Key levels today are 4500 and 4400, with pivot around 4450. Mining and Energy stocks may offer support with improving commodities prices overnight.  M&A activity continues to drive specific stocks.
AOE- Arrow Energy says gross sales in FY10 are up strongly, with gas and electricity sales doubling from last year.

AUN- Austar 1H10 profit dropped 42 percent. Net profit was $20.69 million compared with $35.5 million for the same period a year earlier. Revenue lifted 6.3 per cent to $351.86 million.

CNP- Centro Properties says it will refinance and extend the debt of its US business as the restructure of the company continued.

IIF- Industrial property developer Goodman Group has confirmed it is considering taking over management of ING Industrial Fund (IIF).

IIN- iiNet the internet service provider is in a trading halt, pending an announcement by the company about a potential acquisition.

LEI- Leighton  has won a five-year contract to provide construction and maintenance services to Queensland’s electricity provider, Ergon Energy.

NUF- NuFarm the embattled agricultural chemicals firm reported the U.S.and Canadian regulators have confirmed a final agreement with Nufarm on measures taken to ensure competition following it’s acquisition of AH Marks Holdings Ltd.

OZL- OZ Minerals the copper miner continues to seek acquisition opportunities and has already made non-binding offers for projects.

RIO- A state-owned Chinese company is buying a stake in a Rio Tinto iron mine in Guinea in West Africa for $1.5 billion.

SBM- St Barbara the WA gold producer said it produced 231,018 ounces in fiscal 2010, meeting annual guidance for 2010 and anticipates growth ahead.

Economic Reports :
AFOM – to auction $500 million of March 2019 Treasury notes
RBA – will report on financial aggregates data for June.
Companies:
AWE – releases quarterly report
ERA – ERA releases full year results
ORG – Origin releases quarterly report
MQG – Macquarie Group Ltd AGM today
PDN – Paladin Energy Ltd releases quarterly report
SGT – Singtel AGM today

Expect to see our market trade lower again today.  Time to protect positions and take profits.

Market Summary

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

US ADRs –  Mixed!!!…

BHP up 0.4% & RIO flat; AWC up1.1%
ANZ up 1.6% & NAB up 2.5%
NEM up 0.6%, JHX down 0.4%, NWS down 0.5%
Commodities Stock Index up 0.2%
Gold Stocks Index up 0.2%
Oil Stocks Index up 0.6%By Michael Hevern
Head of Research

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Posted in Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: US and Europe Give Negative Lead for ASX

Thursday, July 29th, 2010

Stock Market Analysis

US and Europe Give Negative Lead for ASX

U.S. stocks traded lower, while European markets halted a six-day rally.  The U.S. market was lower across the board.  Asian markets buck the trend to the positive. Our markets will likely see further profit-taking today.

The SPI Futures is above the key level of 4400, the ASX is set to open lower as the SPI Futures closed down -0.5% (or -23 pts) at 4,485. Home buyers are likely to be spared an interest rate rise from next Tuesday’s Reserve Bank board meeting. Key levels today are 4550 and 4450, with pivot around 4500. M&A activity continues to drive specific stocks.

US Markets

The S&P 500 remains above the key 1100 level, but traded lower, weighed by Fed’s Beige Book reporting economic conditions though still improving in most of its 12 regional districts, advances were modest, with retail sales posting only small gains, housing and construction still weak; sentiment also weighed by data showing demand for durable goods slid for second month in June. The U.S. Commerce Department’s durable-goods report showed that orders and shipments for nonmilitary capital goods excluding aircraft climbed 0.6 percent in June. Nine of 10 industries sectors in the S&P 500 fell after orders for U.S. durable goods dropped 1 percent in June, due to a falling demand for aircraft, government data showed. The Fed also added to the negative sentiment saying that U.S. economic growth slowed in some areas over the past two months, dragged down by commercial real estate and the expiration of a tax credit for home buyers.

The Dow closed down -0.4% (or -40 points) at 10,498, while in the broader market the S&P 500 index down -0.7% (or -8 points) at 1,106 and the tech-heavy Nasdaq ended down -1.0% (or -24 points) at 2,265.

European Markets

European stocks traded lower.  In the U.K. stocks declined the most in more than a week after some disappointing earnings reports.  In London the FTSE 100 index closed down -0.9% (or -46 points) at 5,320, the German DAX down -0.5% (or -28 points) at 6,179.

Asian Markets

Asian markets rose again.  In China the Shanghai Composite Index of equities jumped to a two-month high as the central bank said China’s economic fundamentals are “good”.  Economic data reported by the statistics bureau showed profits of Chinese industrial companies in 24 regions jumped 72 percent to 1.61 trillion yuan ($237.5 billion) in the first half of 2010 from a year earlier.  Industrial metals prices rose on the back of this.   The Chinese index is up 11 percent from its yearly lows, as the jump in industrial profits and the prospects for increased spending and tourism boosted the domestic economic outlook. Japan is also in focus this week with the reporting season starting off well, sending the index to its biggest gains in 3-weeks.  The Yen reached its lowest level against the Euro since May, this helped exporters rise around 5 percent, Banks rise around 3.5 percent after  Basel Committee eases capital assessment stance and Property developers rose.  In China the SSE Composite closed up 2.3% (or 58 points) at 2,634, while in Hong Kong the Hang Seng Index was up 0.6% (or 118 points) at 21,091 and in Japan the Nikkei 225 Index was up 2.7% (or 256 points) at 9,753.

Commodities

The Dollar Index down marginally -0.1% at 82.13 on higher Euro, while the Australian Dollar last traded lower at 89.08. Commodities were generally higher.  The US dollar slipped versus the yen on the back of an unexpected drop in American durable-goods orders further added to evidence the economic recovery is slowing.

Oil prices eased to a 1-week low as  government data showed an unexpected gain in U.S. inventories.  The benchmark crude NYMEX for September delivery was down -0.7% (or $US-0.51) to settle at $US76.99. Copper continued to shine rising to an 11-week high on signs growth is sufficient in China and the U.S. to spur demand. Copper prices are trading well above the key $US3.00 a pound, Copper for September delivery delivery  was up 1.2% (or 4.0 cents) at $US3.2455 a pound, the highest settlement price since mid-May.  Gold rose, with August gold up marginally 0.2% at $US1,160.40 0 an ounce.

Key News International Drivers Today

US –  S&P 500 companies continue to report earnings this week.

EU – M&A activity. Bank shares rose after the Basel Committee on Banking Supervision relaxed some of its proposed capital and liquidity rules.
CHINA –  Economic fundamentals are “good”.  Industrial metals prices rise.  JP Morgan says equities starting to look attractive.
JAPAN –   companies continue to report earnings this week.
Markets Overview

US and Europe Give Negative Lead for ASX

Market

Movement

The Dow Jones Industrial Average

Down -0.4% (or -40 pts)  at 10,498

The S&P 500

Down -0.7% (or -8 pts)  at 1,106

The Nasdaq

Down -1.0% (or -24 pts)  at 2,265

The FTSE 100

Down -0.9% (or -46 pts)  at 5,320

The German DAX

Down -0.5% (or -28 pts)  at 6,179

SSE Composite (China)

Up 2.3% (or 58 pts)  at 2,634

The Dollar Index

Down  Marginally -0.06% at 82.13

The Australian Dollar

Last traded lower at 89.08

The Commodities Index

Up 0.64% at 266.2

Crude Oil Futures

Down -0.7% at $76.99

Gold Futures

Up  Marginally 0.21% at $1,160.40

Copper Futures

Up 1.22% at $3.2455

SPI Futures

Down -0.5% (or -23 pts) at 4,485.0

Market

Movement

SSE Composite (China)

Up 2.3% at 2,634

Hang Seng Index (Hong Kong)

Up 0.6% at 21,091

Nikkei 225 Index (Japan)

Up 2.7% at 9,753
SPI: Above key Level 4400 – SPI down 0.5% at 4,485….

ASX News Today

The SPI Futures is above the key level of 4400 the ASX is set to open lower as the SPI Futures closed down -0.5% (or -23 pts) at 4,485. Home buyers are likely to be spared an interest rate rise from next Tuesday’s Reserve Bank board meeting. Key levels today are 4550 and 4450, with pivot around 4500. M&A activity continues to drive specific stocks.  Investors will digest the impact of the surprise CPI report from yesterday. The RBA are due to decide on interest rates on Tuesday, and are now expected to leave interest rates on hold, after the closely watched underlying rate of inflation slid to 2.7 per cent, the first time it has been below 3 per cent and within the Reserve’s target band for three years.  Also on the jobs front Australia created 45,900 jobs in June, the 11th successive month in which employment has climbed, however almost all of the jobs created in June were in the mining dominated states of Western Australia and Queensland.

ALS- Alesco dissapoints again with another annual net loss of $123.4 million and says it remains cautious about the next 12 months.

ARD- Argent Minerals will undertake a capital raising to fund its $5.3 million purchase of the Bullant underground gold mine in WA.

BSL- BlueScope Steel and Japan’s Nippon Steel Corporation have signed a long-term joint technical collaboration agreement to develop next-generation coated steel products.

CFU- Ceramic Fuels Cells reported that Canberra Institute of Technology (CIT) is to install its gas-to-electricity BlueGen power generating unit.

DOW- Downer the engineering firm said it secured contracts worth $2 billion with a coal mining venture of BHP and Mitsubishi Development. Shares rose 5.9%.

LGL- Lihir the gold producer says June quarterly production is in line with guidance and up six percent on the previous quarter.

MCC- Macarthur Coal says it has achieved a sales record for fiscal 2010 up 15.3 percent, form increased production, improved economic conditions and a sell down of coal stocks, however there was a lagging performance in the June quarter.

NCM- Newcrest planned $9.5 billion Lihir merger is on track.

QR  – Queensland Rail the coal and freight rail operator QR National is on track for fourth quarter this year, the biggest float since Telstra’s T1 in 2007.

RIV- Riversdale Mining the Mozambique-focused coal miner says sales have increased by 51 percent, although production dropped in the June quarter due to excessive water and gas in the main mine shaft.

RXM- Rex Minerals says its Hillside project in South Australia could become one of Australia’s largest copper mines. Ongoing drilling success at Hillside could see with drilling has the potential for the project rank behind BHP’s Olympic Dam mine in SA and Xstrata’s Mount Isa operations in Qld. Shares were up 8.7%.

SIP- Sigma the beleaguered drugs maker and distributor has appointed Jeff Sells as CFO.

TLS- Telstra has been fined $18.5 million for illegally blocking broadband competitors from using its local exchanges.

WDC- Westfield the world’s largest shopping center owner will pay a distribution of 32 cents/share for the six months to June 30.

WPL-Woodside workers are being prosecuted over a strike at the Pluto gas project in WA and face fines totaling more than $40 million. Woodside has taken the action over an eight-day strike in January at the $12 billion Pilbara project.

Economic Reports :

AFOM – to auction $500 million of October 2010 Treasury notes.
CTX – MD to address American Chamber of Commerce
Companies:
AUN – Austar Ltd – 1H10 results
OGC – Ocenanagold Ltd – second half results
Expect to see our market trade lower today.  Time to protect positions and take profits.

Market Summary

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

US ADRs –  Broadly Lower!!!…

BHP up 0.3% & RIO flat; AWC down 1.1%
ANZ down 0.3% & NAB down 0.5%
NEM down 0.7%, JHX down 2.7%, NWS down 1.8%
Commodities Stock Index down 1.0%
Gold Stocks Index up 0.5%
Oil Stocks Index down 0.7%
By Michael Hevern
Head of Research

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Posted in Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: Consumers not so Confident in the US; Negative Lead for ASX

Wednesday, July 28th, 2010

Stock Market Analysis

Consumers not so Confident in the US; Negative Lead for ASX

U.S. stocks took a breather despite further good earnings reports from Dow component DuPont and Cummins. Consumer confidence has hit a five-month low due to the poor employment outlook.  Our market is likely to see some profit taking today, investors should take out some protection.

The SPI Futures is above the key level of 4400 the ASX is set to open higher as the SPI Futures closed up 0.4% (or 19 pts) at 4,490.  Miners, Energy and Consumer Discretionary stocks will likely see profit-taking today. Key levels today are 4550 and 4400, with pivot around 4500. M&A activity continues to drive specific stocks.

US Markets

The S&P 500 remains above the key 1100 level, but consumer confidence fell in July to its lowest point since February, hurt by concerns about the job market, according to a report from the Conference Board.  DuPont (up 3.6 percent) supported the Dow after the company raised its forecast for 2010 earnings well above expectations, while Cummins (up 2 percent) also raised its full-year forecast. But steelmakers painted a gloomier outlook, with AK Steel saying it was cutting production capacity to match weak demand. while US Steel (down 6.4 percent) reported a net loss that missed analysts expectations.

The broader S&P 500 is trading just below its 200-day moving average after crossing above it on Monday (as seen on the chart below).  Sectors (in order) that dragged the market lower included: Consumer Discretionary Materials,  Industrial and Energy, all down over 0.6 percent.  The Dow closed up marginally 0.1% (or 12 points) at 10,538, while in the broader market the S&P 500 index down marginally -0.1% (or -1 points) at 1,114 and the tech-heavy Nasdaq ended down -0.4% (or -8 points) at 2,288.

European Markets

European stocks advanced , in response to the ECB Bank “stress tests”.  Banks led the markets higher.  U.K. stocks held at a 10-month high,  Banks and Energy stocks lead the way.  Bank shares rose after the Basel Committee on Banking Supervision relaxed some of its proposed capital and liquidity rules.  Barclays and Lloyds were up over 7 percent, supporting the bullish sentiment.  BP shares were 2.6 percent lower, as they report huge losses ($US17 billion for the quarter) and a new CEO US-born Robert Dudley.  They also plan to sell $US30 billion in assets to fund the costs of the Gulf of Mexico oil spill, the stock is down 38 percent since the spill.  In London the FTSE 100 index closed up 0.3% (or 15 points) at 5,366, the German DAX up marginally 0.2% (or 13 points) at 6,207.

Asian Markets

Asian markets rose again.  The Japanese market rose, led by banks, after the Basel Committee on Banking Supervision eased some rule proposals, easing concerns that banks will have to raise more capital.  The market is down 6 percent YTD, however Japan earnings season starts this week, which will act as a catalyst (either way).  In China, JPMorgan Asset Management says the China’s yuan-denominated shares are “due for a catch up” in the second half of this year as the nation delays further measures to curb property prices.  In China the SSE Composite closed down -0.5% (or -13 points) at 2,575, while in Hong Kong the Hang Seng Index was up 0.6% (or 133 points) at 20,973 and in Japan the Nikkei 225 Index was down marginally -0.1% (or -7 points) at 9,497.

Commodities

The Dollar Index up marginally 0.1% at 82.15 on higher Euro, while the Australian Dollar last traded at 90.21.  Commodities were generally lower.

Oil prices eased as the storm threat for oil operations in the Gulf of Mexico evaporated.  The benchmark crude NYMEX for September delivery was down -0.5% (or $US0.39) to settle at $US77.11. Copper prices are trading above the key $US3.00 a pound, Copper for September delivery delivery was up marginally 0.0% (or 0.1 cents) at $US3.2055 a pound.  Gold was lower, with August gold was down -2.1% at $US1,162.80 an ounce.

Key News International Drivers Today

US –  S&P 500 companies continue to report earnings this week.

EU – M&A activity. Bank shares rose after the Basel Committee on Banking Supervision relaxed some of its proposed capital and liquidity rules.

CHINA – Central bank happy with the slowing economy.  JP Morgan says equities starting to look attractive.

JAPAN –   companies start to report earnings this week.

Markets Overview

Consumers Not so Confident in the US; Negative Lead for ASX

Market

Movement

The Dow Jones Industrial Average

Up  Marginally 0.1% (or 12 pts)  at 10,538

The S&P 500

Down  Marginally -0.1% (or -1 pts)  at 1,114

The Nasdaq

Down -0.4% (or -8 pts)  at 2,288

The FTSE 100

Up 0.3% (or 15 pts)  at 5,366

The German DAX

Up  Marginally 0.2% (or 13 pts)  at 6,207

SSE Composite (China)

Up 0.8% (or 0 pts)  at 38.0

The Dollar Index

Up  Marginally 0.07% at 82.15

The Australian Dollar

Last traded at 90.01

The Commodities Index

Down -0.83% at 264.5

Crude Oil Futures

Down -0.5% at $77.11

Gold Futures

Down -2.11% at $1,162.80

Copper Futures

Up  Marginally 0.02% at $3.2055

SPI Futures

Up 0.4% (or 19 pts) at 4,490.0

Market

Movement

SSE Composite (China)

Down -0.5% at 2,575

Hang Seng Index (Hong Kong)

Up 0.6% at 20,973

Nikkei 225 Index (Japan)

Down  Marginally -0.1% at 9,497
SPI: Above key Level 4400 – SPI up 0.4% at 4,490….

ASX News Today

The SPI Futures is above the key level of 4400 the ASX is set to open higher as the SPI Futures closed up 0.4% (or 19 pts) at 4,490.  Miners, Energy and Consumer Discretionary stocks will likely see profit-taking today. Time to protect positions.  Key levels today are 4550 and 4400, with pivot around 4500. M&A activity continues to drive specific stocks.

ALZ- Australand the property developer has posted 1H10 net profit up 127 percent, saying it is on track to achieve its full year earnings guidance.

ANZ- ANZ Bank may need to raise $4 to $6 billion to fund acquisitions, including a bid for the Korea Exchange Bank, according to Macquarie Equities.

CEY- Centennial Coal says June quarter production is 14 percent higher than the previous quarter and July 2010 production has started well and declares a final dividend of $0.04/share.

EMX- Energia Minerals the uranium explorer reported its maiden resource estimate for its wholly owned Nyang project in WA. Shares jumped 23%.

IAG- Insurance Australia says it expects to report a drop in annual profit in fiscal 2010 of around 50%, but expects an improved performance in FY11.

MCC- Macarthur Coal Ltd has abandoned a $110 million deal by which it would have bought out CITIC Resources’ interests in a joint venture. Shares fell 3.7%.

NCM- Newcrest has signed a non-binding deal to take at least a 7.1 per cent stake in British firm Sumatra Copper and Gold.

OSH- Oil Search the energy producer reported falling production in its 2Q10 as a result of a processing plant shut down and declining output from its ageing oil fields.

WBC- Westpac says it remains focused on its Australasian business, and is not about to embark on a strategic push into Asia.

WES- Wesfarmers said coal production at its Premier mine near Collie in WA for the June quarter was down 7.6 percent due to lower demand from state electricity generator Verve Energy.

Economic Reports :
CPI – ABS CPI inflation data (forecast is 1% annual 3.4%)
Companies:
ALS – Alesco Corp Ltd – Full year 2010 Preliminary results
RIV – Riversdale Mining Ltd – June Quarterly Report
LGL – Lihir – June Quarterly Report
MCC – Macarthur Coal – June Quarterly Report
WHC – Whitehaven Coal – June Quartely Activities Report
Expect to see our market trade flat to lower today.  Time to protect positions and take profits.

Market Summary

ASX – to open flat, and see profit taking.
US & UK/Europe – lower.

US ADRs –  Mixed!!!…

BHP flat  & RIO up 0.8%; AWC down 2.1%
ANZ up 0.3% & NAB up 0.3%
NEM down 4.0%, JHX up 1.4%, NWS down 1.3%
Commodities Stock Index down 1.3%
Gold Stocks Index down 3.0%
Oil Stocks Index down 0.4%
By Michael Hevern
Head of Research

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Posted in Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: US Markets Push Higher, While Europe is Relieved

Tuesday, July 27th, 2010

Stock Market Analysis

US Markets Push Higher, while Europe is Relieved

U.S. stocks rose to two-month highs on FedEx report and home sales, and are now in the green for the year.  This will be positive for our market today.

The SPI Futures is above the key level of 4400 the ASX is set to open higher as the SPI Futures closed up 0.6% (or 26 pts) at 4,502.  Miners and Consumer Staple stocks should lead rises today, while Insurers and retailers are likely to weigh on the market today. Key levels today are 4550 and 4350, with pivot around 4400. M&A activity continues to drive specific stocks.

US Markets

The S&P 500 remains above the key 1100 level, at break-even YTD, while the DOW is up 0.9 percent for the year (YTD) and  the Nasdaq is up 1.2 percent YTD.  FedEx share rose 5.6 percent on better-than-expected results, boosting their quarterly and full year earnings forecasts, and the positive sentiment continued in the Dow Transports (DJTRANS) Index from last week as it gained 2.6 percent overnight.  New homes sales surprised to the upside, jumping 23.6 percent in June, resulting in hte DJ  US Home Construction Index rising 2.9 percent in the session.  The positive sentiment was broad-based with 4 stocks rising for every 1 that fall, on the NYSE.

The Dow closed up 1.0% (or 101 points) at 10,525ECB Bank “stress tests”, , while in the broader market the S&P 500 index up 1.1% (or 12 points) at 1,115 and the tech-heavy Nasdaq ended up 1.2% (or 27 points) at 2,296.

European Markets

European stocks advanced , in response to the ECB Bank “stress tests”.  Banks led the markets higher.  U.K. stocks rose to a 10-month high,  Banks and Energy stocks lead the way.  Barclays rose 4.5 percent and Lloyds up 3.9 percent, supporting the bullish sentiment.  BP shares were 4.9 percent up as traders anticipate a change in top management, with a new CEO.  In London the FTSE 100 index closed up 0.7% (or 39 points) at 5,351, the German DAX up 0.5% (or 28 points) at 6,194, while in France the CAC was up 0.6% (or 29 points) at 3636.

Asian Markets

Asian markets rose again on the back of the EU Bank “stress test” results and U.S. earnings.  The Shanghai Composite finished nearing a three-week high, led by rising commodities prices and the strong U.S. earnings reporting season.  In China the SSE Composite closed up 0.7% (or 17 points) at 2,589, while in Hong Kong the Hang Seng Index was up marginally 0.1% (or 25 points) at 20,840 and in Japan the Nikkei 225 Index was up 0.8% (or 73 points) at 9,504.

Commodities

The US Dollar Index down -0.5% at 82.09 on higher Euro, while the Australian Dollar last traded higher at 90.16.  Commodities were generally higher.

Oil prices eased as the storm threat for oil operations in the Gulf of Mexico evaporated.  The benchmark crude NYMEX for September delivery was down marginally -0.1% (or $US-0.11) to settle at $US78.87. Copper prices are trading above the key $US3.00 a pound, Copper for September delivery delivery was up 1.2% (or 3.8 cents) at $US3.2250 a pound.  Gold was flat, with August gold was $US4.70 lower at $US1,183.10 an ounce.

Key News International Drivers Today

US –  S&P 500 companies continue to report earnings this week.

EU – M&A activity. Bank “stress test” results had no surprises, but there are concerns over results.

CHINA – Commodity prices and Property developers rise, on speculation the government may ease policies.

Markets Overview

US Markets Push Higher, While Europe is Relieved

Market

Movement

The Dow Jones Industrial Average

Up 1.0% (or 101 pts)  at 10,525

The S&P 500

Up 1.1% (or 12 pts)  at 1,115

The Nasdaq

Up 1.2% (or 27 pts)  at 2,296

 

 

The FTSE 100

Up 0.7% (or 39 pts)  at 5,351

The German DAX

Up 0.5% (or 28 pts)  at 6,194

SSE Composite (China)

Up 0.8% (or 0 pts)  at 37.7

 

 

The Dollar Index

Down -0.46% at 82.09

The Australian Dollar

Last traded at 90.16

The Commodities Index

Up  Marginally 0.02% at 266.7

 

 

Crude Oil Futures

Down  Marginally -0.1% at $78.87

Gold Futures

Down $US4.72 at $S1,183.10

Copper Futures

Up 1.18% at $3.2250

SPI Futures

Up 0.6% (or 26 pts) at 4,502.0

 

 

 

 

Market

Movement

SSE Composite (China)

Up 0.7% at 2,589

Hang Seng Index (Hong Kong)

Up  Marginally 0.1% at 20,840

Nikkei 225 Index (Japan)

Up 0.8% at 9,504
SPI: Above key Level 4400 – SPI up 0.6% at 4,4502…

ASX News Today

The SPI Futures is above the key level of 4400 the ASX is set to open higher as the SPI Futures closed up 0.6% (or 26 pts) at 4,502.  Miners and Consumer Staple stocks should lead rises today, while Insurers and retailers are likely to weigh on the market today. Key levels today are 4550 and 4350, with pivot around 4400. M&A activity continues to drive specific stocks.
AFI- The Investment Company (AFI) annual profit fell 11.9 per cent, but says it will
take a patient approach to investing in 2010/11.

BKW- Brickworks has announced two new debt facilities worth $65 and $94 million to further strengthen its balance sheet and financial position.

CXY- The WA miner is planning to trial underground coal gasification (UCG) in the same southern Queensland town where another UCG project was forced to shut down because of a water contamination scare.
GUD- GUD Holdings Ltd, which owns Sunbeam and other consumer brands, reported a record FY10 profit of $46.4 million, and expects moderate sales growth in the FY11 financial.

HVN- Harvey Norman the electrical and whitegoods retailer reported flat sales for the year as consumers cut spending on luxury items; no longer having the benefit of the government stimulus money in the 4Q last year.  The 4Q result, with total sales from Australia down 4% and like-for-like sales down 3.4%, disappoints the market.

IAG- IAG the insures says it expects to report a FY10 profit drop of around 50%.
FMG- A mining sector representative body has threatened to relaunch its advertising war against the tax.  The Association of Mining and Exploration Companies (AMEC), which represents small-to-mid tier miners, says it could relaunch its ad campaign within days.
LEI- Leighton Asia has secured a $172 million contract to provide mining services at the Martabe Gold Mine in Indonesia’s North Sumatra Province.

MAK- Minemakers shares surged 23% after saying it would offer half of the company in exchange for debt funding for its Wonarah phosphate project in the NT.

QBE- QBE Insurance 1H10 profit is expected to be down 40 percent on the pcp, as net investment income took a hit.  The fall is a result of $254.72 million in equity losses, versus $US102 million in the pcp.

ROC- ROC Oil said production was weaker in the June quarter but it remains on target to meet 2010 production guidance.
TSE- Transfield Services Ltd subsidiary, USM, has secured a $95 million one-year contract to deliver maintenance services to more than 4,000 Walmart stores across the U.S.

WES- Wesfarmers Ltd says its 2009/10 retail sales growth was solid, lifting its sales by 4.3 per cent at its Coles supermarket business

Economic Reports :

HIA – Housig Trades Report for June Quarter
NBN – panel discussion today in Melbourne

Companies:
ALZ – 1H10 results
CEY – Quarterly activities
OSH – 2Q production report
Expect to see our market trade higher today.  Insurers likely to weigh on the market.

Market Summary

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

US ADRs –  Broadly higher!!!…

BHP up 0.3%  & RIO up 0.1%; AWC up 2.0%
ANZ up 2.0% & NAB up 3.4%
NEM down 1.6%, JHX up 4.7%, NWS up 0.9%
Commodities Stock Index up 0.7%
Gold Stocks Index down 0.9%
Oil Stocks Index up 1.7%
By Michael Hevern
Head of Research

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Posted in Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: Fed Warns on U.S. Growth. ASX to Trade Lower Today

Thursday, July 22nd, 2010

Stock Market Analysis

Fed Warns on U.S. Growth. ASX to Trade Lower Today

Overseas markets were mixed with comments from the Fed Chairman weighing on the US markets to continue to rise, while Europeans were cautious ahead the European bank “stress tests” results due Friday, but manged to push their markets higher.

The SPI Futures is below the key level of 4400 the ASX is set to open lower as the SPI Futures closed down -1.1% (or -49 pts) at 4,349. Our market looks set to trade lower today. Key levels today are 4400 and 4300, with pivot around 4350. Sectors were weak across the board in the U.S. and this will pressure our markets today. M&A activity continues to drive specific stocks.

US Markets

U.S. stocks closed sharply lower on overnight after the Fed chairman Ben Bernanke warned that the U.S. economy has weakened and that the economic “outlook remains unusually uncertain”.  Bernanke reiterated that the Fed will remain accommodating, however he ruled out any additional near term stimulus spending and said the unemployment will likely remain above 7 percent until at least 2012 (the next election).  The selloff was broad-based and most sectors were around 1.5 percent lower.  This was despite the beter-than-expected reports from Morgan Stanly and Wells Fargo.  Among the stocks reporting tonight include: Microsoft, Amex.

The Dow closed down -1.1% (or -109 points) at 10,121, while in the broader market the S&P 500 index down -1.3% (or -14 points) at 1,070 and the tech-heavy Nasdaq ended down -1.6% (or -35 points) at 2,187. Two stocks fell for every one that rose on the NYSE.

European Markets

European markets finished higher breaking a four session losing streak session. Investors are still cautious though, ahead of the results of the European bank stress tests are due 23 July.  In London the FTSE 100 index closed up 1.5% (or 75 points) at 5,215, the German DAX up 0.4% (or 23 points) at 5,990 and the French CAC was up 0.8% (or 26 points) at  3,494.

Asian Markets

Most Asian markets rose yesterday, with the exception of Japan on their concerns of the impact of a stronger Yen on their export economy.  The Shanghai Composite finished nearing a three-week high on the back of a report that the government will boost investment in the alternative energy sector as well as expectations of strong first half profits for airlines.  In China the SSE Composite closed up 0.3% (or 7 points) at 2,535, while in Hong Kong the Hang Seng Index was up 1.1% (or 223 points) at 20,487 and in Japan the Nikkei 225 Index was down marginally -0.2% (or -22 points) at 9,279.

Commodities

The Dollar Index up 0.7% at 83.32 on lower Euro, while the Australian Dollar last traded lower at 87.64.

Crude oil prices dropped after the weekly report showed U.S. inventories on the rise (up 400,000 barrels).  The benchmark crude NYMEX for August delivery was down 1.3% (or $US1.02) to settle at $US76.56. Copper prices are trading above the key $US3.00 a pound, Copper for September delivery delivery was up 3.0% (or 9.2 cents) at $3.0930  a pound.  Gold was steady, with August gold flat at $US1,191.80 an ounce.

Key News International Drivers Today

US – Fed Chairman Ben Bernanke warns on the “uncertain” economic outlook. S&P 500 companies continue to report earnings this week.

EU – M&A activity. Bank “stress test” results on the 23 July.  .

CHINA – Bargain hunting continues, on speculation the government may ease policies.

Markets Overview

US Earnings Give ASX a Positive Lead Today

Market

Movement

The Dow Jones Industrial Average

Down -1.1% (or -109 pts)  at 10,121

The S&P 500

Down -1.3% (or -14 pts)  at 1,070

The Nasdaq

Down -1.6% (or -35 pts)  at 2,187

 

 

The FTSE 100

Up 1.5% (or 75 pts)  at 5,215

The German DAX

Up 0.4% (or 23 pts)  at 5,990

SSE Composite (China)

Up 0.8% (or 0 pts)  at 36.2

 

 

The Dollar Index

Up 0.69% at 83.32

The Australian Dollar

Last traded at 87.64

The Commodities Index

Flat at 261.5

 

 

Crude Oil Futures

Down 1.3% at $76.56

Gold Futures

Flat at $1,191.80

Copper Futures

Up 9.3 cents at $3.0930

SPI Futures

Down -1.1% (or -49 pts) at 4,349.0

 

 

 

 

Market

Movement

SSE Composite (China)

Up 0.3% at 2,535

Hang Seng Index (Hong Kong)

Up 1.1% at 20,487

Nikkei 225 Index (Japan)

Down  Marginally -0.2% at 9,279

ASX News Today

The SPI Futures is below the key level of 4400 the ASX is set to open lower as the SPI Futures closed down -1.1% (or -49 pts) at 4,349. Our market looks set to trade lower today. Key levels today are 4400 and 4300, with pivot around 4350. Sectors were weak across the board in the U.S. and this will pressure our markets today. M&A activity continues to drive specific stocks.
AXA- AXA Asia Pacific expects 1H10 operating earnings to rise 5.7 percent.BDG -Bendigo Mining the gold producer Bendigo Mining is in a trading halt pending a merger proposal announcement.
BHP- quarterly production figures were strong. They increased shipments of metallurgical coal by around 50 percent, as steel production recovers.
JET – the ACCC has called for comment on Jetset Travelworld’s proposed $180 million takeover of Stella Travel Services.
MCC- “former” suitor Peabody will not confirm whether it stands to benefit from the new MRRT proposal. Peabody has reported that its Australian businesses delivered a 75 percent rise in June quarter pre-tax profits of $255 million.  This sets up a positive lead form other Aussie coal producers this quarter.
PDN- Paladin is on the acquisition trail after NGM Resources has recommended its shareholders accept a $27 million takeover bid from the African-focused uranium miner.
RHG – the former Rams Home Loans Group, has upgraded its profit forecast to between $86 to $96 million, due to a contingent income tax asset.
RXL – Rox Resources the junior exploreris allowing RIO to take a stake and is hoping to develop its Myrtle zinc deposit.
TEN – Ten has withdrawn from the bi-annual survey of television advertising revenue, citing “serious concerns” about the numbers collected.
WOW- Woolworths the grocery heavy weight reported disappointing 4Q sales, with its lowest sales growth n 10 years.

TLS- Telstra is shedding more than 300 senior management roles in Sydney and Melbourne (no frontline staff will lose their job)

Economic Reports :

AXA – AXA Asia Pacific Holdings Ltd group CEO Andrew Penn is will address a business lunch today in Melbourne.
AFOM -  to auction $500 million of October 22, 2010, Treasury notes.
MQG – Macquarie Group deputy managing director Richard Sheppard will address a business lunch today.
NAB – National Australia Bank releases its business survey for the June quarter.

REPORTS – June quarter production reports are due from Santos Ltd, Newcrest Mining Ltd and Beach Energy Ltd, and Petsec Ltd releases June quarter and first half results.

Expect to see our market trade lower today.
Market Summary
ASX – to open lower
US & UK/Europe – mixed.

US ADRs –  Broadly lower!!!…

BHP down 1.2%  & RIO down 1.2%; AWC down 3.8%
ANZ down 1.8% & NAB down 2.8%
NEM down 1.4%, JHX down 3.2%, NWS down 2.3%
Commodities Stock Index down 1.2%
Gold Stocks Index down 0.5%
Oil Stocks Index down 1.3%
By Michael Hevern
Head of Research

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Posted in Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: US Earnings Give ASX a Positive Lead Today

Wednesday, July 21st, 2010

Stock Market Analysis

US Earnings Give ASX a Positive Lead Today

Overseas markets were mixed with the US reporting season helping US markets to continue to rise, while Europeans were cautious ahead the European bank “stress tests” results due Friday.

The SPI Futures is above the key level of 4400 the ASX is set to open higher as the SPI Futures closed up 0.9% (or 41 pts) at 4,423.  The RBA minutes were released yesterday saying that the uncertainty over the European debt issues have helped keep our interest rates on hold, however the future direction of interest rates will be driven by the inflation figures due out on 28 July.  Our market should continue to trade firmer again today after good performances from the U.S. and our mining and industrial sectors yesterday.  M&A activity continues to drive specific stocks.  Key levels to watch today are 4500 and 4350, with pivot around 4400.

US Markets

Investors chose to concentrate on the good news overnight as earnings reports were mixed.  Apple, the key NASDAQ stock, once again exceeded expectations with a 78 percent surge in 3Q profits, and sales were up 61 percent. This result indicates that the consumer is still alive in the U.S., however on the flip side Yahoo disappointed with revenue falling and sales down 8 percent (YoY) as they face competition from Facebook and Google. Also disappointing were IBM, Texas Instruments, Johnson & Johnson and Goldman Sachs. Goldman Sachs reported its 2Q profit plummeted 83% to its lowest level since late 2008, as trading revenues declined 36%, which was much more than forecast. Traders sentiment improved late in the day on speculation that the U.S. may be considering a new stimulus package. The Fed chairman Ben Bernanke will address the Senate tonight. The Materials and Energy sectors continued higher up 3% and 2.3% respectively.

The Dow closed up 0.7% (or 76 points) at 10,230, while in the broader market the S&P 500 index up 1.1% (or 12 points) at 1,083 and the tech-heavy Nasdaq ended up 1.1% (or 24 points) at 2,222.

European Markets

European markets finished the session lower for a fourth session. The weaker-than-expected US housing data continued to weigh on sentiment, also Goldmans disappointing results hurt. The results of the European bank stress tests are due 23 July.  In London the FTSE 100 index closed down marginally -0.2% (or -9 points) at 5,139, the German DAX down -0.7% (or -42 points) at 5,967, while in France the CAC was down -0.50% (or 18 points) at 3468.

Asian Markets

Most Asian markets rose yesterday, with the exception of Japan. The Shanghai Composite appears to be holding support at current levels and jumped another 2.2% as banking, property and consumer stocks rose on hopes that the government may not introduce more restrictive policies after several indicators showed last week the economy was cooling. This helped our mining sector.  In China the SSE Composite closed up 2.2% (or 53 points) at 2,529, while in Hong Kong the Hang Seng Index was up 0.9% (or 174 points) at 20,265 and in Japan the Nikkei 225 Index returned from a holiday and was down -1.2% (or -108 points) at 9,300.

Commodities

The Dollar Index up 0.3% at 82.79 on lower Euro, while the Australian Dollar last traded higher at 88.30 The Commodities were generally higher.

Crude oil prices rose as traders eye potential tropical storms in the Caribbean and falling US stockpiles.  The benchmark crude NYMEX for August delivery was up $US0.90 (or 1.2%) to settle at $US77.44. Copper prices are trading above the key $US3.00 a pound, Copper for September delivery delivery was up marginally 2.1% (or 6.4 cents) at 3.0015  a pound.  Gold was higher, with August gold up $US9.80 to settle at $US1,191.70 an ounce.

Key News International Drivers Today

US – Fed Chairman Ben Bernanke to address the Senator tonight. 129 S&P 500 companies will report earnings this week.

EU – M&A activity. Bank “stress test” results on the 23 July.  .

CHINA – Bargain hunting continues, on speculation the government may ease policies.

Markets Overview

Overseas Markets Give Negative Lead for the ASX

Market

Movement

The Dow Jones Industrial Average

Up 0.7% (or 76 pts)  at 10,230

The S&P 500

Up 1.1% (or 12 pts)  at 1,083

The Nasdaq

Up 1.1% (or 24 pts)  at 2,222

 

 

The FTSE 100

Down  Marginally -0.2% (or -9 pts)  at 5,139

The German DAX

Down -0.7% (or -42 pts)  at 5,967

SSE Composite (China)

Down -0.5% (or 0 pts)  at 36.0

 

 

The Dollar Index

Up 0.33% at 82.79

The Australian Dollar

Last traded at 88.30

The Commodities Index

Up  Marginally 0.12% at 261.5

 

 

Crude Oil Futures

Up 1.2% at $77.44

Gold Futures

Up  Marginally 0.01% at $1,191.70

Copper Futures

Up  Marginally 0.02% at $3.0015

SPI Futures

Up 0.9% (or 41 pts) at 4,423.0

 

 

 

 

Market

Movement

SSE Composite (China)

Up 2.2% at 2,529

Hang Seng Index (Hong Kong)

Up 0.9% at 20,265

Nikkei 225 Index (Japan)

Down -1.2% at 9,300

 

 

ASX News Today

The SPI Futures is above the key level of 4400 the ASX is set to open higher as the as the SPI Futures closed up 0.9% (or 41 pts) at 4,423.  The RBA minutes released yesterday saying that the uncertainty over the European debt issues have helped keep our interest rates on hold, however the future direction of interest rates will be driven by the inflation figuures due out on 28 July. Key levels today are 4500 and 4350, with pivot around 4400.  Our market should continue to trade frimer again today after good performances from the U.S. and our mining and industrials sectors yesterday.  M&A activity continues to drive specific stocks.
AQP- Aquarius Platinum dispels fears it will be forced to change mining methods at its operations in South Africa after it was sold-off on concerns that any changes could involve higher costs.
 

BHP- will release its June quarter production report today.

BNB – the liquidator’s examination of Babcock & Brown continues in the Federal Court.

CEY- Centennial says Banpu which has made a $2.5 billion takeover offer for Centennial, has received approval from the Bank of Thailand for it to remit foreign currency to pay for deal.

CTY – Country Road the embattled fashion retailier expects a 20% drop in annual profit due to aggressive discounting in the retail sector and the startup costs of its new 40 plus brand.

CWN- Crown the gaming firm has government support to expand the number of pokie machines at Perth’s Burswood casino.

ILU_ Iluka the mineral sands miner reported its June quarter production fell following the closure of its WA operations, but sales volumes were up strongly in 2H10

MTU- Shareholders of the telecommunication services provider M2 Telecomm can expect healthy returns, according to the company’s earnings guidance for 2010/11. Shares rose 20 cents to $1.92.

PDN- Paladin the uranium producer is considering taking over NGM Resources.

POS – Andrew Forrest’s nickel explorer Poseidon Nickel is in a trading halt pending a capital raising.
SDL- Sundance the iron ore explorer reports that a definitive feasibility study for its Mbalam project in Cameroon is on track for completion this year. Shares were up 3 cents to $0.15.

WOW- Woolworths will release its fourth quarter sales result today.

Economic Reports :

Westpac-Melbourne Institute reports the May Indexes of Economic Activity
Expect to see our market trade firmer today. M&A is picking up.

Market Summary

Westpac-Melbourne Institute reports the May Indexes of Economic Activity
Expect to see our market trade firmer today. M&A is picking up.

Market Summary

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

US ADRs –  Broadly higher!!!…

BHP up 4.7%  & RIO up 5.6%; AWC up 6.2%
ANZ up 4.1% & NAB up 4.0%
NEM up 1.7%, JHX up 5.0%, NWS up 1.8%
Commodities Stock Index up 2.8%
Gold Stocks Index up 2.2%
Oil Stocks Index up 1.4%
By Michael Hevern
Head of Research

 

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Posted in Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: Overseas Markets Cautious; ASX to Steady Today

Tuesday, July 20th, 2010

Stock Market Analysis

Overseas Markets Cautious; ASX to Steady Today

Overseas cautious ahead of a busy news week, with European bank “stress tests” and US reporting season.  Our market should steady today after yesterday’s sell-off.

The SPI Futures is below the key level of 4400 the ASX is set to open flat as the SPI Futures closed down marginally -0.1% (or -3 pts) at 4,325.  Key levels today are 4400 and 4200, with pivot around 4200.  Expect our market to steady, after Wall Street and European markets showed caution.

US Markets

With 129 S&P500 companies reporting this week, investors are cautious, but the makets did manage to recover some of Friday’s 2 percent selloff. U.S. builder confidence in July sank to 14, its lowest level since March 2009, casting doubt on the housing sector’s recovery.  Confidence was hit by fears of deteriorating economic conditions and the expiration of a government subsidy for home buyers.

Companies that have reported are generally more profitable, but revenues and sales are down which is a concern for investors going forward. Better-than-expected earnings from Halliburton with 2Q revenues surging 26% helped lift energy stocks.  However, IBM reported a 9% rise in 2Q profits but revenues fell short of expectations after the bell on Monday. Johnson & Johnson and Goldman Sachs release reports on tonight.

The Dow closed up 0.6% (or 57 points) at 10,154, while in the broader market the S&P 500 index up 0.6% (or 6 points) at 1,071 and the tech-heavy Nasdaq ended up 0.9% (or 20 points) at 2,198.

European Markets

European markets finished the session lower. Investors shook off the Moody’s cut to Ireland’s credit rating, which cited a rising debt burden, a weak growth outlook and the high cost of rebuilding a shattered banking system, though the outlook is now stable.   However the weaker-than-expected US housing data did weigh on sentiment.  Also, Hungary failed to reach a deal with the IMF and the European Union that would allow it to tap the remainder of its EUR20 billion loan package. BP sold off 6 percent on fears the capped well is leaking in the Gulf. M&A activity is also picking up in Europe which helped sentiment.  The results of the European bank stress tests are due 23 July. In London the FTSE 100 index closed down marginally -0.20% (or -11 pts) at 5,148, the German DAX down -0.52% (or -31 pts) at 6,009, while in France the CAC was down -0.3% (or 14 pts) at 3,486.

Asian Markets

Most Asian markets dropped yesterday after steep losses on Wall Street prompted selling, however Chinese shares bucked the trend closing higher on Monday as blue chips including coal miners and bank stocks rallied on bargain hunting and M&A news. The Shanghai Composite jumped 2.1% as banking, property and consumer stocks rose on hopes that the government may not introduce more restrictive policies after several indicators showed last week the economy was cooling. In China the SSE Composite closed up 2.1% (or 51 pts) at 2,475, while in Hong Kong the Hang Seng Index was down -0.8% (or -159 pts) at 20,091 and in Japan the Nikkei 225 Index was closed for Marine Day at 9,408.

Commodities

The Dollar Index up marginally 0.13% at 82.59 on higher Euro, while the Australian Dollar last traded at 86.35. Commodities were generally steady.

Crude oil prices rose as traders eyed a potential tropical storms.  The benchmark crude NYMEX for August delivery was down marginally -0.17% (or -3 pts) to settle at $US76.41. Copper prices are trading above the key $US3.00 a pound, Copper for July delivery was up 0.1% (or 0.8 cents) at 2.9380  a pound.  Gold was higher, with August gold down $US6.30 or 0.5% to settle at $US1,181.90 an ounce.

Key News International Drivers Today

US – FinREG is passed will be signed into law this week. 129 S&P 500 companies will report earnings this week.

EU – M&A activity. Bank “stress test” results on the 23 July.  BP says stage 1 of plug completed successfully.

CHINA – Bargain hunting.

Markets Overview

 

ASX News Today

The SPI Futures is below the key level of 4400 the ASX is set to open lower as the SPI Futures closed down marginally -0.1% (or -3 pts) at 4,325.  Key levels today are 4400 and 4200, with pivot around 4200.  Expect our market to steady, after Wall Street and European markets showed caution.

AVO- Avoca Resources has substantially increased gold resource estimates at its South Kalgoorlie operations.
AAG – AngloGold Ashanti proposed Tropicana gold mine in WA has been approved by the state’s Environmental Protection Authority (EPA).
AQA- Aquila Resources the iron ore and coal miner will spend $320 million to develop its Washpool hard coking coal project in central Queensland .
AAX- Engineering and project management group Ausenco Ltd has won a contract to provide works for Canadian miner Taseko Mines Ltd.
DJW – Djerriwarrh Investments Ltd has posted an annual profit of $25 million, down on a revised result from last year due to lower dividend payouts.
FML- Focus Minerals the gold miner/explorer has unearthed rich mineralisation at its Treasure Island tenement in its WA eastern goldfields region.
HSP – Healthscope  has agreed to a $2 billion offer from private equity firms Carlyle Group and TPG Capital.
NAB -AXA and NAB, along with AXA APH’s parent, France-based AXA SA, have extended the deadline by which they must achieve court approval for NAB’s $13.3 billion takeover bid for AXA APH to the end of January next year.
SDL- Sundance Resources Ltd fell after the iron ore explorer emerged from a month-long trading halt, after it lost its entire board in a plane crash in Africa.
RIV- Riversdale Mining has successfully completed the $174 million institutional component of the accelerated pro-rate entitlement offer and a $102 million share placement. The funds are to expedite development of its Benga project in Africa.
SFR- Sandfire has upgraded its copper resource at its DeGrussa project in Western Australia.
STO- Santos Ltd has secured a $2 billion loan facility to give it to fund growth plans that include its $7.7 billion Gladstone LNG project (LNG) in Queensland.
Economic Reports:
RBA – will report last meeting minutes
RBA – Glenn Stevens to speak
Expect to see our market steady today. M&A is picking up.

Market Summary

ASX – to open steady
US & UK/Europe – subdued.

US ADRs –  Mixed!!!…

BHP up 0.8%  & RIO down 2.9%; AWC up 2.2%
ANZ down 0.7% & NAB up 0.7%
NEM down 1.5%, JHX up 0.3%, NWS up 1.8%
Commodities Stock Index up 0.7%
Gold Stocks Index down 1.8%
Oil Stocks Index up 0.2%

By Michael Hevern
Head of Research

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Posted in ASX Trading News, Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: Weekly Market Wrap

Friday, July 16th, 2010

Weekly Market Wrap

Overseas markets spent this week in consolidation mode, however most markets are yet to break above the down trend line that has been in place since April. The economic data out this week has pointed to a slowing recovery in China and the US. The US reporting season kicked off well, however any gains have been subdued due the market preempting the earnings season last week.

US Markets

The U.S. markets have traded lower overnight for the first time in eight sessions. The reporting season has kicked off well with Alcoa and JPMorgan reporting better-than-expected results, while in the IT sector Intel released a great report citing improving demand going forward, but Google reported today below expectations. Alcoa’s comments helped the commodities markets by saying that demand for aluminum is improving.

The financial sector has been in the limelight this week, with FinREG (financial regulations bill), JPMorgan results and Goldman’s settlement over SEC fraud charges. Goldman’s settled over SEC fraud charges for $US550 million without admitting liability. The new financial regulations bill is aimed at averting another global financial crisis (GFC) and will become law next week. The FinREG bill encompasses the broadest restrictions on financial institutions activities since the great depression. The new laws will incorporate a clamping down on lending practices, restrictions on prop-trading, it will require for derivatives to be traded on regulated exchanges and expanding consumer protections.

Overnight the Dow closed flat at 10,359, while in the broader market the S&P 500 index was flat at 1,096 and the tech-heavy Nasdaq ended flat at 2,249.

European Markets

In Europe, markets consolidated. Germany reaffirmed its support of the Euro and reported its exports doubled in May. However the European data also showed that inflation has slowed, rising 1.4% (from 1.6%) and industrial production has increased less than the forecasts. The results of the European Central Banks “stress tests” will be released on 23 July on a bank-by-bank basis, so providing there are no surprises this should help the European markets next week.

Overnight in London the FTSE 100 index closed down -0.8% at 5,211, the German DAX down -1.0% at 6,149, while in France the CAC was down -1.4% at 3581.

Asian Markets

The key news in Asia continues to point to a slowing economic recovery. The Chinese government reported their Gross Domestic Product (GDP) of 10.3% for the quarter, slightly below forecasts (versus 11.9 percent in the previous quarter). China’s GDP has maintained double-digit growth for the third quarter in a row and it appears that the government is successfully managing its economic slowdown after scaling back its huge stimulus spending and tightening its lending policies. The long awaited debut of the $US22 billion IPO for Ag Bank of China listing was weak (listing up 0.7%).

In China the SSE Composite closed down -1.9% at 2,424, while in Hong Kong the Hang Seng Index was down -1.5% at 20,256 and in Japan the Nikkei 225 Index was down -1.1% at 9,686.

Commodities

Commodities have generally moved higher this week on the back of a weaker US dollar. BP has finally stopped the Gulf of Mexico oil spill for the first time since April. Overnight, the benchmark of crude NYMEX for August delivery was down US$0.42 to settle at US$76.62 a barrel. Copper prices are trading above the key $US3.00 a pound, and Copper for July delivery rose 0.4 cents to settle at $US 3.012 a pound. Gold was higher, with August gold up $US1.30 to settle at $US1,208.30 an ounce.

ASX News

Our markets have been driven by overseas sentiment. Merger & Acquisition activity is continuing with a $3.5 billion bid for Intoll, finalisation of the Arrow takeover and a number companies increasing their strategic stakes in other companies. The date of the next election is still unresolved but is expected to be on the 21st of August.

Our View

Markets consolidated this week but we are yet to break above the down trend line that has been in place since April. The key support level is now around 4,400 and the key levels for our index next week are 4500 and 4200.

Our market is at a key resistance level and will be guided by overseas sentiment. The US will be driven by its reporting season but the Goldman’s settlement and the resolution of the FinREG bill should be positive for their markets. European markets will be keenly anticipating the EU bank “stress tests” due out 23 July and providing there are no surprises should be positive for equities.

The S&P ASX 200 is currently trading around 4430, up 1 percent for the week.

By Michael Hevern
Head of Research

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Posted in Stock Market Analysis, Trader Dealer News | No Comments

Stock Market Analysis: China Cools; FinReg Passed in the U.S; ASX Set to Trade Lower.

Friday, July 16th, 2010

Stock Market Analysis

China Cools; FinReg Passed in the U.S; ASX Set to Trade Lower.

Overseas markets in the U.S. and U.K. saw profit-taking  again overnight, as economic data is pointing to a slower economic recovery.  Bank of America reports tonight.  Our markets are set to trade lower today.

The SPI Futures is above the key level of 4400 and the ASX is set to open lower as the SPI Futures closed down marginally -0.20% (or -8 pts) at 4,425.  Key levels today are 4450 and 4300, with pivot of 4400. Expect our market to see further profit-taking today, after Wall Street and European markets traded lower overnight.

US Markets

US markets traded lower overnight as resistance of the downward trend line continued to offer resistance.  Economic data also points to a slowing recovery with two regional reports pointing to a slowing in manufacturing activity in the northeast, while the Fed reported modest growth in industrial output nationwide.  The Labor Department said first-time claims for unemployment benefits fell last week, but this was largely due to seasonal factors.

The financial sector was in focus with FinReg, JPMorgan results and Goldman’s settlement over SEC charges.  The US Congress has passed the braodest restrictions on banks and Wall Street since the 1930’s.  The FinReg consists of new financial regulations aimed at averting a situation like the one that lead to the GFC meltdown of the U.S. financial system.  It will incorporate a clamping down on lending practices, restrictions on prop-trading, requirements for derivatives to be traded on regulated exchanges and an expanding consumer protections.  FinReg has now passed and will be signed into law next week.

Golmans settled over SEC fraud charges for $US550 million while not admitting to liability, $250 million of this will go to impaired clients,  they report on Tuesday.  Goldman Sachs has settled the 16 April charges that grew out of the sale of securities based on risky mortgages. GS shares rallied 4 percent.  However the sector may still be under pressure as the SEC said that they investigating other institutions. Bank of America is reporting tonight.  JPMorgan (JPM) reported its second-quarter net income has jumped 77 per cent to $US4.8 billion as a slowdown in losses from failed loans helped offset a difficult spring in trading and investment banking.  In IT Google  reported its second-quarter net profit rose 24 per cent over last year to $US1.84 billion.  JPM shares rose 0.3 percent and Google shares were up 0.6%.

The Dow closed down marginally -0.07% (or -7 points) at 10,359, while in the broader market the S&P 500 index up marginally 0.12% (or 1 points) at 1,096 and the tech-heavy Nasdaq ended down marginally -0.03% (or 0 points) at 2,249.

European Markets

European markets traded lower.  European markets closed weaker as the economic data from the U.S. and China pointed to a slowing recovery.  BP has finally succeeded in stopping the flow of oil into the Gulf of Mexico for the first time since April, integrity tests are still underway.  BP shares rose 8 percent.  In London the FTSE 100 index closed down -0.80% (or -42 pts) at 5,211, the German DAX down -0.97% (or -60 pts) at 6,149, while in France the CAC was down -1.41% (or -51 pts) at 3581.

Asian Markets

Asian markets traded lower.   The Chinese government to reported GDP of 10.3% for the quarter, slightly below forecasts (versus 11.9 percent in the previous quarter). China’s GDP has maintained in double-digit growth for the third quarter in a row, and it appears that the government is successfully managing its economic slowdown, after scaling back its huge stimulus spending and tightening its lending policies.  Banks led falls in the index though, following the weak debut of the $US22 billion IPO of Ag Bank of China listing (finished up 0.7%).  In China the SSE Composite closed down -1.87% (or 0 pts) at 2,424, while in Hong Kong the Hang Seng Index was down -1.48% (or -305 pts) at 20,256 and in Japan the Nikkei 225 Index was down -1.12% (or -110 pts) at 9,686.

Commodities

The Dollar Index down -1.27% at 82.37 on higher Euro, while the Australian Dollar last traded at 87.28. Commodities were generally higher.

Oil prices were down after new economic indicators signaled slowing growth in the U.S. and China, which are the world’s top energy consumers. BP has stopped the spill, but is still undertaking integrity tests for the latest well capping in the Gulf of Mexico oil. The benchmark crude NYMEX for August delivery down US$0.42 to settle at US$76.62 a barrel. Copper prices are trading above the key $US3.00 a pound, Copper for July delivery rose 0.4 cents to settle at $US 3.012 a pound. Gold was higher, with August gold up $US1.30 or 0.1% to settle at $US1,208.30 an ounce.

Key News International Drivers Today

US – FinREG is passed will be signed into law next week. Goldmans settles for $US550 million with SEC, not admitting to liability, they report on Tuesday. Bank of America is reporting tonight.
EU – European inflation slowed (rising 1.4 percent from 1.6 percent) and industrial prodution increased less than forecast in May.
CHINA – Government to reports GDP of 10.3% slightly below forecasts. $US22 billion IPO of Ag Bank of China lists flat.
Markets Overview

China Cools; FinReg Passed in the U.S; ASX Set to Trade Lower.

Market

Movement

The Dow Jones Industrial Average

Down  Marginally -0.07% (or -7 pts)  at 10,359.3

The S&P 500

Up  Marginally 0.12% (or 1 pts)  at 1,096.5

The Nasdaq

Down  Marginally -0.03% (or 0 pts)  at 2,249.1

The FTSE 100

Down -0.80% (or -42 pts)  at 5,211.3

The German DAX

Down -0.97% (or -60 pts)  at 6,149.4

SSE Composite (China)

Down -1.41% (or -1 pts)  at 37.1

The Dollar Index

Down -1.27% at 82.37

The Australian Dollar

Last traded at 87.28

The Commodities Index

Up 0.77% at 264.21

Crude Oil Futures

Up  Marginally 0.20% at $76.62

Gold Futures

Up  Marginally 0.11% at $1,208.30

Copper Futures

Up  Marginally 0.35 cents at $3.012

SPI Futures

Down  Marginally -0.20% (or -8 pts) at 4,425.0

Market

Movement

SSE Composite (China)

Down -1.87% at 2,424.3

Hang Seng Index (Hong Kong)

Down -1.48% at 20,255.6

Nikkei 225 Index (Japan)

Down -1.12% at 9,685.5

Dow Jones Futures (US)

Down  Marginally 0.00% at 10,309.0

S&P/ASX 200

Down  Marginally 0.00% at *4,442.554
SPI: Above key Level 4400 – SPI down 0.2% at 4,425…

ASX News Today

The SPI Futures is above the key level of 4400 the ASX is set to open lower as the SPI Futures closed down marginally -0.20% (or -8 pts) at 4,425.  Key levels today are 4450 and 4300, with pivot of 4400. Expect our market to see further profit-taking today, after Wall Street and European markets traded lower overnight.
ALZ- Australand has established a $1.3 billion unsecured syndicated bank debt facility as the real estate investment trust aims to diversify and increase flexibility in its funding.
AMC- Amcor has appointed Russell Investments to manage its $850 million corporate superannuation fund.APA – APA the natural gas infrastructure business has launched a $300 million issue of 10-year medium term bond notes to Australian and international investors.

AVO- Avoca Resources has substantially increased gold resource estimates at its South Kalgoorlie operations. Shares were up 5.3%.

FMG- Fortescue  has upgraded the resource estimates at its Solomon project in its WA Pilbara region.  Shares fell 4.1%.  Also FMG reiterated that they are yet to make a final decision about two large projects put on hold due to the proposed minerals resource rent tax (MRRT), as they are still “sufficiently concerned” about the financing of the projects.
ITO- Intoll the toll road owner has received a $3.5 billion takeover offer from the Canada Pension Plan Investment Board.  Share surged 30% to $1.45.
LEI- Leighton has secured a $700 million contract adjustment to increase production at Ukhaa Khudag (UHG) coal mine in southern Mongolia.LNC- Linc Energy the clean coal technology company is in “advanced” talks with several parties interested in buying its non-core coal tenements in Queensland.
NAB- is still negotiating the potential divestment of AXA Asia Pacific Holding’s Wealth.net platform only hours before the bank’s exclusivity agreement over its $13.3 billion bid expired.NUF- Nufarm having slashed its FY profit guidance by 50 percent, now says they will not achieve an existing borrowing covenant by a “small margin”, and is seeking a temporary adjustment from its lenders.  Shares plummeted 28% to $3.75.

NVT- Navitas the education services provider its subsidiary ACL Pty has had two federal government contracts extended.

OZL- OZ Minerals has approved the development of an underground mine at Prominent Hill in South Australia.

RIV – Riversdale Mining is in a trading halt pending a capital raising.

SIP- Sigma disappoints again, downgrading its FY net profit guidance saying corporate costs have increased and its generics division was performing below expectation.

SPN- SP AusNet the Victorian electricity network operator says the company remains a stable and secure investment for security holders.
SUN- Suncorp says FY after tax profit will benefit by between $110 and $125 million from the insurer’s sale of stakes in joint ventures.
Economic Reports :

AOFM -  will Auction $700 million in April 2015  Treasury Bonds

Infrastructure Australia Chairman will address the American Chamber of Commerce today
Expect to see further profit-taking today, still a good time to take some protection using options.

Market Summary

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

US ADRs –  Lower!!!…

BHP up 0.5%  & RIO down 1.0%; AWC down 2.1%
ANZ down 0.1% & NAB down 1.1%
NEM down 1.7%, JHX down 1.4%, NWS down 0.5%
Commodities Stock Index up 0.2%
Gold Stocks Index down 0.2%
Oil Stocks Index up 0.7%

By Michael Hevern
Head of Research

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Posted in Morning Wrap, Stock Market Analysis | No Comments

Stock Market Analysis: The Fed Report Cools U.S. Markets, ASX Set to Trade Lower

Thursday, July 15th, 2010

Stock Market Analysis

The Fed Report Cools U.S. Markets. ASX Set to Trade Lower.

Overseas markets in the U.S. and U.K. saw profit-taking overnight.  A solid report form Intel failed to push U.S. markets significantly higher, JPMorgan and Google report tonight. The Fed provided a softer outlook for growth, near term.  Our markets are set to trade lower today.

The SPI Futures is above the key level of 4400 the ASX is set to open lower as the SPI Futures closed 16 points down or -0.4% at 4,429 .  Key levels today are 4500 and 4300, with pivot of 4400.  Expect our market to see profit-taking today, after Wall Street and European markets were subdued overnight.

US Markets

The US Fed Reserve commented on growth prospects for the US economy overnight.  They trimmed their forecasts for growth down to 3 to 3.5 percent (from 3.2 to 3.7 percent) noting that the risk to the recovery had increased, however they did not see the need for further stimulus.  The economy is seeing high unemployment, constrained housing spending, slowing inflation and contracting credit the FED continues on a stance of lower interest rates for an “extended period”.  Retail demand softened in May, but industrial companies with global exposure are posting strong second quarter profits.  Investors took the queue to take profits,with the Financial and Consumer Discretionary sectors were down over 0.6 percent on the session, the Miners were down around 0.3 percent.

The Dow closed up marginally 0.04% (or 4 points) at 10,366, while in the broader market the S&P 500 index down marginally -0.02% (or 0.1 points) at 1,095 and the tech-heavy Nasdaq ended up 0.35% (or 8 points) at 2,249.

European Markets

European markets were mixed.  London markets fell for the first time in six session, the index is still 10 percent below its April peak.  ICAP the big UK broker sold off after saying that its June transactions had fallen, citing traders aversion to risk, the shares were down 4.6 percent, and the luxury retailer Burberry was down 3 percent after a broker downgrade (DB).  BP has been given permission to undertake its integrity tests for the latest well capping in the Gulf of Mexico oil, shares were up 2.3 percent.  Across in Europe news was mixed, Germany reaffirmed its commitment to the Euro and said its exports doubled in May, but European inflation slowed (rising 1.4 percent from 1.6 percent) and industrial production increased less than forecast in May.  In London the FTSE 100 index closed down -0.3% (or -18 pts) at 5,253, the German DAX up 0.3% (or 19 pts) at 6,209, while in France the CAC was up 0.1% (or 5 pts) at 3,633.

Asian Markets

Asian markets were dominated by China. Chinese stocks rose overnight as traders speculated that corporate earnings will withstand a slowing Chinese economy.  Auto stocks rose as much as 5 percent, Aluminum Corp was up 2 percent, while Jiangxi Copper rose 3 percent, on the back of higher commodities prices.  There is big news out today with the government expected to report GDP growth of 10.5 percent in the second quarter (down from 11.5 percent in the first quarter) and there is the IPO of Ag Bank of China is due tomorrow.  In China the SSE Composite closed up 0.8% (or 20 pts) at 2,470, while in Hong Kong the Hang Seng Index was up 0.6% (or -16 pts) at 20,560 and in Japan the Nikkei 225 Index was up 2.7% (or -16 pts) at 9,795.

Commodities

The US Dollar Index down -0.35% at 83.35 on higher Euro, while the Australian Dollar last traded flat at 88.10. Commodities were generally higher.

Oil prices were down despite a fall in US inventories. BP has been given permission to undertake its integrity tests for the latest well capping in the Gulf of Mexico oil.  The benchmark crude NYMEX for July delivery down US$0.11 to settle at US$77.04 a barrel.  Copper prices are trading above the key $US3.00 a pound, Copper for July delivery fell 0.1% to settle at $US 3.0085 a pound. Gold was lower, with August gold down $US6.50 or 0.6% to settle at $US1,207.00 an ounce.

Key News International Drivers Today

US – Fed revises growth forecast down to 3.5% (from 3.7%).  JPMorgan and Google are reporting tonight.

EU – Germany reaffirmed its commitment to the Euro, exports double. But European inflation slowed (rising 1.4 percent from 1.6 percent) and industrial prodution increased less than forecast in May.

CHINA – Government to report GDP, plus new IPO of Ag Bank of China today.

Markets Overview

The Fed Report Cools U.S. Markets.  ASX Set to Trade Lower.


Market

Movement

The Dow Jones Industrial Average

Up  Marginally 0.04% (or 4 pts)  at 10,366.7

The S&P 500

Down  Marginally -0.02% (or 0 pts)  at 1,095.2

The Nasdaq

Up 0.35% (or 0 pts)  at 2,249.8

 

 

The FTSE 100

Down -0.33% (or -18 pts)  at 5,253.5

The German DAX

Up 0.30% (or 19 pts)  at 6,209.8

SSE Composite (China)

Up 0.82% (or 0 pts)  at 2,470.4

 

 

The Dollar Index

Down -0.35% at 83.35

The Australian Dollar

Last traded at 88.10

The Commodities Index

Up 1.36% at 261.91

 

 

Crude Oil Futures

Down -0.35% at $76.77

Gold Futures

Down  Marginally 0.00% at $*1,213.30

Copper Futures

Up 0.43% at $3.0120

SPI Futures

Down -0.40% (or -16 pts) at 4,429.0

 

 

 

 

Market

Movement

SSE Composite (China)

Up 0.82% at 2,470.4

Hang Seng Index (Hong Kong)

Up 0.64% at 20,560.8

Nikkei 225 Index (Japan)

Up 2.71% at 9,795.2

SPI: Above key Level 4400- SPI down 0.4% at 4,429…

ASX News Today

The SPI Futures is above the key level of 4400 the ASX is set to open higher again as the SPI Futures closed 16 points down or -0.4% at 4,429 .  Key levels today are 4500 and 4300, with pivot of 4400.  Expect our market to see profit-taking today, after Wall Street and European markets were subdued overnight.

AOE – takeover of the coal seam gas developer is complete at $4.70 after Shell and PetroChina have succeeded, after Chinese authorities approved the deal.

CXS- ChemGenex Pharmaceuticals has announced a breakthrough with the US Food and Drug Administration regarding the approval of a new cancer drug. Shared soared 32% to $0.38.

ELD -Elders the agribusiness has completed negotiations for the benchmark price for Australian plantation-grown Tasmanian bluegum woodchip for export to Japan, with existing prices maintained.

ENK- European Nickel is on track to complete debt financing for its $A397 million Caldag nickel laterite project in Turkey by year’s-end.

ESV – eServGlobal the Mobile phone software operator says the planned sale of its Universal Service Platform business was not completed by the end of the 2010 financial year.

IRN- Indophil Resources says it cannot get clarity on a government proposal to ban open pit mining in South Cotabato, in the Philippines.  Shares plummeted 43% to $0.63.
IOF- ING Office Fund says international office property markets have stabilised as recent valuations have shown improvements in the value of its portfolio.
LNC- Linc Energy the clean coal technology company is in “advanced” talks with several parties interested in buying its non-core coal tenements in Queensland. Shares spiked 31% to $1.38.

MOS – Mosaic the oil and gas explorer accepts $130 million takeover offer from AGL Energy.

NUF- Nufarm the agricultural chemicals supplier dissapoints again slashing its FY profit guidance by 50 percent, blaming poor weather and low demand, and says it has been unable to meet sales and margin expectations.
QAN- Qantas is managing delivery dates of the new Boeing 787 aircraft to support Jetstar’s international expansion and retire older aircraft sooner.
RIO- Rio says growth is firmly back, after reporting a solid production result and has a range of expansion and investment options competing for capital.
SPN – SP AusNet the Victorian electricity network operator says the company remains a stable and secure investment for security holders.

Economic Reports :

ABS – Reports June new motor veshile sales.
AOFM -  will Auction $500 million in April 2020  Treasury Bonds
Consumer Inflationary Expectations for July be released from the Melbourne Institute
NAB – will address the American Chamber of Commerce today
Westpac and the Melbourne Institute release their joint survey of consumer sentiment for July.

Expect to see some profit-taking today, still a good time to take some protection using options.

Market Summary

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

US ADRs –  Mixed!!!…

BHP down 0.1%  & RIO up 0.1%; AWC down 2.5%
ANZ up 0.3% & NAB up 0.3%
NEM up 0.1%, JHX up 0.2%, NWS up 0.5%
Commodities Stock Index down 0.2%
Gold Stocks Index up 0.2%
Oil Stocks Index down 0.3%

By Michael Hevern
Head of Research

Tags: , , , , , , , , , , ,
Posted in Morning Wrap, Stock Market Analysis | No Comments

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