Online Stockmarket Trading Update

*  US stock markets recovered from an early sell-off overnight, as buyers stepped into financial and defensive stocks.
*  European stock markets rebounded overnight, recovering from an initial sell-off in the wake of weekend election results in France and Greece.
*  Asian stock markets slumped yesterday, taking their lead from the US and eurozone traders, but we should see some bargain hunting today.
*  Commodities prices were lower, with Gold prices traded around $US1,639 while crude-oil closed around $US97.

The Australian market is expected to recover today, particularly our dividend stocks.  Markets bounced and finished well off their lows in the European markets and in the US. We have the Federal Budget night.

The SPI Futures is trading above the key pivot level of 4300, ended up 0.6% (or 38 points) at 4,323. The key levels for our index today are 4320 to 4380.

See below for ASX listed companies in the news today.

US Markets

US stock markets recovered from an early sell-off overnight, as buyers stepped into Financial and defensive stocks.  

The Dow industrials ended lower for a fourth session and finished just above 13,000.  In the broader markets the S&P500 and the Nasdaq finished flat for the session, with the Financials sector offering support.  Traders in effect shrugged off the largely expected results of the European elections, and saw some bargain hunting after Friday’s sell-off due to the disappointing Non-Farms Employment report, as US stocks bounced back after European markets mostly wiped out their session losses to trade higher. 

In economic news, US consumer credit expanded in March at the fastest rate in more than a decade. 

All ten company groups that make up the S&P index traded sharply lower, with the Materials down -1.7% , Energy sector was down -2.3%, Financials sector down -1.6%,  Industrials sector was down -1.4%, Technology was down -2.1%,  while Consumer Staples were down -1.9%.

The Dow Jones closed down -1.3% (or -168 points) at 13,038, the S&P 500 index down -1.6% (or -22 points) at 1,369, the Nasdaq ended down -2.3% (or -68 points) at 2,956  and the smaller cap Russell 2000 was down -1.8%.

European Markets

European stock markets rebounded overnight, recovering from an initial sell-off in the wake of weekend election results in France and Greece. The Stoxx Europe 600 index rose 0.7%.  

The recent political developments will create a challenge to the agreements reached by European Union leaders to cut deficits through reduced spending going forward, which the German government is pushing as a pre-requisite for the bailouts in weaker economies such as Greece, Spain and Italy.  

The results of the weekend-election results were largely expected, however the Greek election results are worrying as the public-debt restructuring in March may be in jeopardy.  The Greek stock market failed to stage any recovery, plunging -6.7% on the back of the election results, which is looking likely to result in a hung parliament.

The French stock market recovered from early selling after Socialist challenger Francois Hollande defeated President Nicolas Sarkozy on the weekend final election round, as bargain hunters stepped in.  Across the region resource and construction sectors supported the market gains.

In London the FTSE 100 index last closed down -1.9% (or -111  points) at  5,655, the German DAX was closed up 0.1% (or 8 points) at 6,569 while in France the CAC was closed up 1.7% (or 52 points)  at 3,214, Spain closed up 2.7% and Italy closed up 2.5%.

Asian Markets

*  US stock markets fell sharply on Friday night, as sellers stepped in across the board due to the disappointing Non-Farms Payroll Employment Report and crude-oil broke below the $US100 level.
*  European stock markets declined on Friday night, ahead of a number of country elections.
*  Asian share markets ended mostly lower on Friday, expect Asian markets to sell-off today, following their overseas counterparts. .
*  Commodities prices were lower, with Gold prices traded around $US1,645 while crude-oil closed around $US98.
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The Australian market is expected to sell-off again today, particularly our miners, after commodities sold-down on the weekend.  Markets traded lower from the open and closed on their lows in the European markets and in the US. We have a busy day for economic news today and the Federal Budget tomorrow night.

The SPI Futures is trading above the key pivot level of 4300, ended down -1.1% (or -50 points) at 4,340. The key levels for our index this week are 4250 to 4400.
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See below for ASX listed companies in the news today.

Economics News Today

*  Apr     Australian PCI
*  Mar     Building Approvals
*  Mar     Retail Sales
*  Apr     ANZ Job Ads
*  Apr     NAB Business Survey
*  Apr     Official Reserve Assets Reserves (US dollars).

US Markets

US stock markets fell sharply on Friday night, as sellers stepped in across the board due to the disappointing Non-Farms Payroll Employment Report and crude-oil broke below the $US100 level.

The sell-off was sparked by the Labor Department report that showed the US economy added fewer jobs than expected last month, as Nonfarm payrolls rose 115,000 in April (well below the anticipated an increase of 168,000 jobs).  The poor employment report capped off a week of disappointing manufacturing and employment reports.  

All 10 sectors in the S&P500 traded in the red for the session with the falls led by the technology and energy, while the materials and financials sectors sold-off sharply too.  The Nasdaq has its biggest session fall since last November and the index had its biggest weekly decline for the since November, slumping -3.7% during the week.  

The other two major indexes had their first fall in 3-weeks with the Dow Jones Industrials and the S&P500 indexes having their largest drop in a month, and for the week the Dow Jones was down -1.4% and the S&P 500 fell -2.4%.  All 30 of the Dow components finished down for the session.  

Commodities were weaker, led by a sharp fall in crude-oil prices which slumped below the $US100 level for the first time since February, after margin requirements were increased on the futures market.  Gold price edged higher.

All ten company groups that make up the S&P index traded sharply lower, with the Materials down -1.7% , Energy sector was down -2.3%, Financials sector down -1.6%,  Industrials sector was down -1.4%, Technology was down -2.1%,  while Consumer Staples were down -1.9%.

The Dow Jones closed down -1.3% (or -168 points) at 13,038, the S&P 500 index down -1.6% (or -22 points) at 1,369, the Nasdaq ended down -2.3% (or -68 points) at 2,956  and the smaller cap Russell 2000 was down -1.8%.

European Markets

European stock markets declined on Friday night, ahead of a number of country elections.  The Stoxx Europe 600 index ended down -1.7%. 

Traders sold-off ahead of political elections, which will be a people vote on the restrictive austerity measures that have been imposed as a result of the eurozone bailout earlier this year. 

In France the second-biggest economy, have elected Francois Hollande, who defeated French President Nicolas Sarkozy to has become the first Socialist in 17 years. Hollande has pledged to push for less austerity and more growth in the region.  While in Greece voters supported the anti-bailout parties, throwing doubt on whether the two main parties can put together a government strong enough to implement spending cuts to ensure the flow of bailout funds.

Traders face a period of uncertainty as these new governments stamp their authority on their respective economies.

In London the FTSE 100 index last closed down -1.9% (or -111  points) at  5,655, the German DAX was closed down -2.0% (or -133  points) at 6,561 while in France the CAC was closed down -1.9% (or -61 points)  at 3,162, Spain closed up 0.3% and Italy closed down -1.4%.

Asian Markets

In China the SSE Composite closed up 0.5% (or 12 points)   at 2,450, while in Hong Kong the Hang Seng Index closed  down -0.8% (or -163 points) at 21,086 and in Japan the Nikkei 225 Index  was closed  at 9,380, South Korean KOSPI was down -0.3% for the session, while the Indian market closed down -1.8%.

Commodities

The Dollar Index was higher at 79.1 on a lower Euro, while the Australian Dollar last traded lower at 1.0191. Commodities prices traded lower.

For the session the Benchmark crude NYMEX for June delivery was down -3.9% settled at $US98.49.  Copper prices are backing off key resistance level as Copper for June delivery was down -1.5% (or -0.4 cents) at $US3.721, while June gold was up 0.6% (or $US10.40) at $US1,645.

CBA – Commonwealth Bank of Australia (CBA) has cut its standard variable home loan rate by 40 basis points to 7.01 per cent.

CMJ – Consolidated Media Holdings says it is not considering a sale of its 25 percent stake in pay TV operator Foxtel, but has been in discussions which may result in a change of control at the company.

CRF – Centro Retail Australia the shopping centre owner expects lower interest rates to improve sales in its centres.

HVN – Harvey Norman say its pre-tax profit for the first nine months of the financial year is down 25 percent as sales continued to fall in the three months March.

QAN – Qantas will cut spending by a further $400 million next financial year by delaying delivery of new A380 aircraft.

LLC- Lend Lease has won a $210 million contract to carry out earthworks for the BHP Mitsubishi Alliance in Queensland.

STO – Santos the oil and gas producer Santos says reserving Australia’s natural gas resources for its own use would be counter-productive.

TSE – Transfield Services’ public transport joint venture has won an $800 million contract to maintain and operate Sydney’s famous harbour ferry services.

TAH – Tabcorp has generated more revenue in the first three months of the calendar year, partly as a result of greater interest in fixed-odds betting and the animated racing game, Trackside.

WBC – Westpac has cut its standard variable home loan rate by 37 basis points to 7.09 per cent.
Corporate News

GPT Group (GPT)
Macquarie Group (MQG)
Market Summary  

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

Commodities Stock Index down -1.9%
Gold Stocks Index up 0.5%
Oil Stocks Index  down -3.0% 

US ADRs – Broadly Lower!!…  

BHP down -2.3%, RIO down -3.9%; AWC down -3.5%

*  US stock markets fell overnight, as sellers stepped in across the board ahead of the Non-Farms Payroll Report.
*  European stock markets ended modestly lower overnight.
*  Asian share markets ended mostly lower yesterday, after disappointing manufacturing and employment reports from the US and the eurozone sparked concerns of slowing global economic growth.
*  Commodities prices were lower, with Gold prices traded around $US1,637 while crude-oil closed around $US102.
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The Australian market is expected to sell-off today, particularly our miners, after many stock markets were closed lower overnight.  Markets traded lower from the open in the European markets and in the US and were weak in late session trading. Look out for the RBA’s Quarterly Statement due out today, as investors set themselves ahead of next week’s Federal Budget.

The SPI Futures is trading above the key pivot level of 4360, ended down -0.3% (or -12 points) at 4,414. The key levels for our index today are 4360 to 4430.
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See below for ASX listed companies in the news today.

Economics News Today
*  RBA -  Quarterly Statement on Monetary Policy. 

US Markets

US stock markets fell overnight, as sellers stepped in across the board ahead of the Non-Farms Payroll Report.  

Investor mood was dampened by the recent disappointing manufacturing and employment reports, and there was caution ahead of the Non-Farm monthly employment report due out tonight.  

The S&P500 closed below the 1400 level for the first time in a week. All 10 sectors in the S&P500 traded in the red for the session with the falls led by the materials and energy sectors on the back of weaker commodity prices, due to concerns overn slowing economic global growth.  

In economic news the US non-manufacturing sector data showed expansion slowed more than expected in April, according to the Institute for Supply Management (ISM) with the non-manufacturing purchasing index falling to 53.5 last month (down from 56 in March).  Traders took some profits ahead of the Non-Farms Payrolls report, which economists expect the report to show that 168,000 jobs were added last month, with the unemployment rate holding steady at 8.2%.

All ten company groups that make up the S&P index traded lower, with the Materials down -1.1% , Energy sector was down -1.7%, Financials sector down -0.8%,  Industrials sector was down -0.8%, Technology was down -0.8%,  while Consumer Staples were down -0.8%.

The Dow Jones closed down -0.5% (or -62 points) at 13,206, the S&P 500 index down -0.8% (or -10 points) at 1,391, the Nasdaq ended down -1.2 (or -35 points) at 3,024  and the smaller cap Russell 2000 was down -1.5%. 

European Markets

European stock markets ended modestly lower overnight. The Stoxx Europe 600 index closed 0.1% higher, off its session highs.  

In London the FTSE 100 index last closed up 0.2% (or 8  points) at  5,766, the German DAX was closed down -0.2% (or -16  points) at 6,694 while in France the CAC was closed down -0.2% at 3,223, Spain closed up 0.3% and Italy closed down -0.7%.
 

Asian Markets

In China the SSE Composite closed up 0.1% (or 2 points)   at 2,440, while in Hong Kong the Hang Seng Index closed  down -0.3% (or -59 points) at 21,249 and in Japan the Nikkei 225 Index  was closed  at 9,380, South Korean KOSPI was down -0.2% for the session, while the Indian market closed down -0.8%.  

Commodities   

The Dollar Index was higher at 79 on a lower Euro, while the Australian Dollar last traded lower at 1.0264. Commodities prices traded lower.For the session the Benchmark crude NYMEX for June delivery was down -2.5% settled at $US102.59.  Copper prices are backing off key resistance level as Copper for June delivery was down -1.3% (or -5 cents) at $US3.737, while June gold was down -1.1% (or -$US17.30) at $US1,637.

ASX News Today

Corporate News

Australian Pharma (API)

Market Summary   

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

Commodities Stock Index down -2.4%
Gold Stocks Index down -3.5%
Oil Stocks Index  down -1.7% 

US ADRs – Broadly Lower!!… 

BHP down -2.1%, RIO down -3.3%; AWC down -4.2%
ANZ down -% & NAB down -0.6%
NEM down -2.0%, JHX down -0.7%, NWS down -0.9%

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

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

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

See below for ASX listed companies in the news today.

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

US Markets

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

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

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

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

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

European Markets

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

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

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

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

Asian Markets

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

Commodities

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

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

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

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

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

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

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

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

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

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

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

Market Summary 

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

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

US ADRs – Broadly Higher!!… 

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

By Michael Hevern

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

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

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

See below for ASX listed companies in the news today.

US Markets

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

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

European Markets

Asian Markets

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

Commodities

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

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

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

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

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

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

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

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

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

Market Summary  

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

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

US ADRs – Broadly Higher!!…  

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

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

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

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

See below for ASX listed companies in the news today.

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

US Markets

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

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

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

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

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

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

European Markets

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

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

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

Asian Markets

Commodities

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

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

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

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

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

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

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

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

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

Corporate News

None

Market Summary 

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

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

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

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

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

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

See below for ASX listed companies in the news today.

US Markets

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

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

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

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

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

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

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

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

European Markets

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

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

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

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

Asian Markets

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

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

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

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

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

Commodities

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

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

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

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

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

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

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

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

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

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

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

Henderson Group (HGG)

Market Summary 

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

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

US ADRs – Broadly Higher!!… 

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

By Michael Hevern

See below for ASX listed companies in the news today. 

US Markets

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

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

European Markets

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

Asian Markets

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

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

 ASX News Today

Corporate News

None

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

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

US ADRs – Broadly Higher!!…  

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