Online Stockmarket Trading Update

*  US stock markets held their ground overnight, after early weakness.
*  European stocks markets dropped the most in 10 months overnight.
*  Asian stock markets plunged yesterday, recording there biggest falls since September 2011.
*  Commodities prices mixed, Gold prices are trading up around $US1,391, while crude-oil closed around $US94.

The Aussie market backed off  sharply from 5-year highs, testing the 5050 and is looking to open modestly higher today, as stock prices closed dropped sharply in Europe, but held in the US.  The precipitous fall in the Aussie dollar has triggered a wave of selling from overseas investors as they look to repatriate their hard earned profits of recent times.

SPI Futures is trading just above the key level of 5050, ended up 0.3% (or  16 points) at 5,086. The key levels for the ASX200 index today are 5040 to 5120.    The Aussie dollar was slammed yesterday down towards US96c, but managed to rebound overnight.

Testing times for the Aussie Market as the SPI Futures hold critical support.

See below for ASX listed companies in the news today.

US Markets

US stock markets held their ground overnight, after early weakness, but recorded their first consecutive falls in a month.

The three benchmark indexes all ended down around -0.2% for the session. The Dow Jones remained around the 15,300 level. The S&P500 again held above the 1650 level around all-time highs. Markets are testing the 13-day support level at this time, and the “buy-on-the-dip” mentality will be tested.

The ten S&P sectors primarily ended lower with falls led by the Utilities sector down -2.4% in the past 2-days, while Financial and Consumer discretionary sectors all down -0.5% overnight, closely followed by Industrials and Consumer Staples down -0.2%, while Materials and Energy ened flat for the session. The S&P index of homebuilders added 1 percent as 10 out of its 11 members gained.

US stocks held despite a contraction in China manufacturing and as investors weighed Federal Reserve stimulus comments, and the American housing data. Traders are trying to digest the comments from the Fed Chairman Ben Bernanke who in prepared remarks to Congress that a premature withdrawal of quantitative easing would put the economic recovery at risk, but in further remarks revealed the Fed could “step down” the pace of asset purchases in the next few meetings if the labour market continues to improve and “we have confidence that that is going to be sustained”.

The S&P 500 has risen for past 6-months without a 5% pullback but yesterday’s the 2.5% turnaround may portend further weakness/profit-taking in the near-term.

For the session Dow Jones closed down -0.1% at 15,295, the S&P500 closed down -0.3% at 1,651, and the NASDAQ closed down -0.1% at 3,459.

European Markets

Asian Markets

Asian stock markets plunged yesterday, recording there biggest falls since September 2011 and backing off 5-year highs, as the financial sector weighed again.

The MSCI Asia Pacific Index fell -3.4% for the session. Paring the index gains for the year back to below 7%. Sellers stepped in after Chinese manufacturing data confirmed contraction and there is a spectre of reising interet rates in Japan.

In Japan the market plummeted over -7% as 12 stocks fell for every one that rose. Traders were looking for an excuse to take profits as the index pushed above the 15,600 at its highest level since December 2007. The index fell the most since the aftermath of the March 2011 tsunami and nuclear disasters and triggered a trading halt in Nikkei 225 Stock Average futures trading in Osaka at one point.

The Chinese market fell for a second session, falling away after it recorded its longest winning streak in 3-months. The Shanghai Composite is now flat for the year (having fallen as much as -9% from its February peak), and yesterday the market fell. Traders sold after the HSBC “Flash PMI” release from China that showed manufacturing in the world’s second largest economy is contracting for the first time in seven months. The preliminary reading of a purchasing managers’ index declined to 49.6 in May from 50.4 in April. A reading below 50 marks contraction.

For the session the Chinese Shanghai Composite closed down -1.2% at 2,276, the Hong Kong Hang Seng closed down -2.5% at 22,670, and the Japanese Nikkei closed down -7.3% at 14,484, while the South Korean KOSPI closed down -1.2% at 1,969.

Commodities

The Dollar Index was higher at 83.75 on a lower Euro, and the Aussie Dollar closed  down  at 0.9744.  Commodities prices traded mixed.

Overnight the COMEX WTI Crude for MAY13 delivery  closed  down 0.0% at $US94.25, the COMEX Copper for May 13 delivery  closed  down -2.3% at 3.304, the COMEX Gold for JUN13 delivery  closed up 1.8% at $US1,391.80.

ASX News Today

AAC – Agricultural Company he cattle farmer Australian is continuing to negotiate the sale of a major piece of land in Queensland after it was passed in at auction.

BANKs – Banks have sold off heavily as foreign investors take profits as the Aussie dollar crumbles, falling below US96c today.

BTU – Bathurst Resources; conservation group Forest & Bird and the Greens have slammed the government’s decision to allow an Australian company to develop a new open-cast coal mine on conservation land near Westport in exchange for $22 million.

CWN – Crown, the casino company controlled by billionaire James Packer, has sold its entire 10% stake in rival Echo Entertainment Group for about $264 million around 3.20/share, a 7% discount.

DLX – DuluxGroup has stopped supplying its premium paint and woodcare products from Masters and Danks corporate stores to work more closely with other partners.

JHX – James Hardie’s full year net profit has fallen significantly because of changes to its asbestos liabilities and the impact of legal battles with the tax office.

MYR – Myer says sales have grown slightly, but the department store remains cautious about the future for the retail industry.

SWM – US private equity firm KKR is to sell its entire 12 percent stake in Seven West Media, worth about $265 million, cutting its ties to Seven after an almost seven-year partnership.

TLS – Telstra is not saying how many jobs may be lost as part of a major restructure of its internal operations.

Market Summary

ASX – to open lower
US & UK/Europe – US flat, EU lower.

US ADRs – Broadly flat!!…

ANZ -2.8%, NAB -1.9%
BHP -1.2%, RIO -1.6%, NEM 0.8%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets reversed early gains sharply overnight, due to concerns further stimulus.
*  European stocks markets ended flat overnight, hovering around 5-year highs.
*  Asian stock markets eased back from 5-year highs, as the financial sector weighed again.
*  Commodities prices lower, Gold prices are trading lower around $US1,367, while crude-oil closed around $US94.

The Aussie market is backing off 5-year highs, weakening below the 5200 and is looking to open lower today, as stock prices closed flat in Europe, but ended sharply lower in the US after news from the Fed.  The RBA said record-low rates are “appropriate to encourage sustainable growth” as business confidence was cited as remaining weak.

SPI Futures is trading just above the key level of 5200, ended down -0.4% (or  -20 points) at 5,151. The key levels for the ASX200 index today are 5120 to 5180.    The Aussie dollar was slammed overnight down towards US96c.

In economic data we have Manufacturing PMI data from Europe and China today.

Key day reversal on the S&P500 index may trigger test of 50-day moving average near-term – would need to see follow-through tonight for confirmation.

See below for ASX listed companies in the news today.

US Markets

US stock markets reversed early gains sharply overnight, due to concerns that the Federal Reserve will scale back its stimulus efforts if the labor market continues to improve.

The three benchmark indexes all ended down around -0.8% for the session. The Dow Jones remained around the 15,300 level. The S&P500 again held above the 1650 level around all-time highs, but the markets reversed early gains sharply and ended up giving back all the gains of the past 3-days. It will be a testing night tonight as the 13-day support level will be under pressure.

All ten S&P sectors ended lower with falls led by the Utilities, Materials and Telecom sectors all down -1.2%, closed followed by Financial, Energy and Industrials.

US stocks initially rallied after Fed Chairman Ben Bernanke said in prepared remarks to Congress that a premature withdrawal of quantitative easing would put the economic recovery at risk. Traders started selling after further remarks revealed the Fed could “step down” the pace of asset purchases in the next few meetings if the labour market continues to improve and “we have confidence that that is going to be sustained”.

The S&P 500 has risen for past 6-months without a 5% pullback and the 2.5% turnaround overnight may portend further weakness/profit-taking in the near-term. In commodities gold and silver eased again after the comments from the Fed overnight

For the session Dow Jones closed down -0.5% at 15,307, the S&P500 closed down -0.8% at 1,655, and the NASDAQ closed down -1.1% at 3,463.

European Markets

Asian Markets

Asian stock markets eased back from 5-year highs, as the financial sector weighed again.

The MSCI Asia Pacific Index fell -0.1% for the session. The index is up 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation and as centrals banks remain supportive in the US and Europe.

In Japan the market pushed above the 15,600 at its highest level since December 2007, as exporters gained on the back of a weaker yen.

The Chinese market fell for the first time in 6-days, but has still risen 6% in the past week and has recorded its longest winning streak in 3-months, as the Shanghai Composite is now in the positive for the year (having fallen as much as -9% from its February peak), and yesterday the market fell as declines by technology and energy producers overshadowed gains in the property and consumer staples sectors. In Hong Kong the market eased as well.

For the session the Chinese Shanghai Composite closed down -0.1% at 2,302, the Hong Kong Hang Seng closed down -0.5% at 23,261, and the Japanese Nikkei closed up 1.6% at 15,627, while the South Korean KOSPI closed up 0.6% at 1,994.

Commodities

The Dollar Index was higher at 84.25 on a lower Euro, and the Aussie Dollar closed down at 0.9693.  Commodities prices traded lower.

Overnight the COMEX WTI Crude for MAY13 delivery closed down -2.0% at $US94.28, the COMEX Copper for May 13 delivery closed up 1.1% at 3.381, the COMEX Gold for JUN13 delivery closed down -0.7% at $US1,367.40.

ASX News Today

ABC – Adelaide Brighton the cement and lime manufacturer, expects net profit in 2013 to be flat or slightly below 2012 levels due to the effects of weak demand and the carbon tax.

BHP – BHP the mining giant is refusing to hire local workers for its two new central Queensland coal mines, a union claims.

EGP – Echo entertainment says a levy will be imposed on Sydney’s Star casino to help cover the cost of monitoring and regulating its operations.

ILU – Iluka Resources says lower prices for its mineral sands will cause a fall in earnings in 2013.

MQG – MacBank increased their hybrid offer from $4oom to $600m due to its popularity.

MYR – Myer says sales have grown slightly, but the department store remains cautious about the future for the retail industry.

SWM – US private equity firm KKR is to sell its entire 12 percent stake in Seven West Media, worth about $265 million, cutting its ties to Seven after an almost seven-year partnership.

RIO – Rio Tinto says workers at a Newcastle coal terminal will stop work for eight hours on Friday as part of an ongoing industrial dispute at the facility.

Market Summary

ASX – to open lower
US & UK/Europe – US lower, EU flat.

US ADRs – Sharply  lower!!…

ANZ +3.3%, NAB -3.3%
BHP +1.2%, RIO -0.2%, NEM -1.1%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets rose overnight, after support that the Fed should continue its bond buying to boost growth.
*  European stocks markets started the week on a positive note, hovering around 5-year highs.
*  Asian stock markets ended higher yesterday, holding around its 5-year highs.
*  Commodities prices lower, Gold prices are trading lower around $US1,377, while crude-oil closed around $US96.

The Aussie market held at 5-year highs, just below the 5200 and is looking to open higher today, as stock prices closed flat in Europe, but ended higher in the US.  The RBA released minutes of its May meeting in which it described a cut to record-low rates as “appropriate to encourage sustainable growth” as business confidence was cited as remaining weak.

SPI Futures is trading just above the key level of 5200, ended down -0.1% (or  -5 points) at 5,187. The key levels for the ASX200 index today are 5160 to 5230.  Expect gold miners to see some profit-taking, as gold retraced overnight, as gold held below the $1,400 level and also iron ore prices now down over 20% from its February highs.

It will be busy later on this week for economic data with Manufacturing PMI data from Europe and China and from the US FOMC meeting minutes and Trade data.

German market grinds higher for an eleventh straight session.

See below for ASX listed companies in the news today.

US Markets

US stock markets rose overnight, after St. Louis Federal Reserve Bank President James Bullard said the central bank should continue its bond buying to boost growth.

The three benchmark indexes all ended up 0.2% for the session. The Dow Jones remained around the 15,350 level. The S&P500 again held above the 1660 level at all-time highs and has closed higher for eleven of the last foruteen trading sessions (up 17% for the year). The gains have been broad based as over 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).

The ten S&P sectors ended mixed with gains led by the Healthcare up sector over 1.1%, followed by Financials and Consumer Staple sectors ended up around 0.4%, while falls were led by Energy and Technology sectors ended down around -0.3%.

Goldman Sachs has forecast the US stock market rally may last at least another 2 1/2 years and send the S&P 500 up 26 percent to 2,100, based on a repeat of the 90′s, predicting it will finish 2013 at 1,750 and 2014 at 1,900 as stock valuations increase. Stock prices have held on to gains since the Fed Chairman Ben Bernanke confirmed that the Fed will continue its unprecedented stimulus until the jobless rate falls to 6.5 percent or inflation rises above 2.5 percent. The S&P 500 has risen for past 6-months without a 5% pullback.

In commodities gold and silver eased after the comments from James Bullard. The focus will be on the Fed tonight, with the Fed chairman, Ben Bernanke testifying before Congress on the outlook for the US economy and the FOMC also releases the minutes of its April.

For the session Dow Jones closed up 0.3% at 15,388, the S&P500 closed up 0.2% at 1,669, and the NASDAQ closed up 0.2% at 3,502.

European Markets

Asian Markets

Asian stock markets eased back from 5-year highs, as the financial sector weigh.

The MSCI Asia Pacific Index fell -0.3% for the session. The index is up 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation and as centrals banks remain supportive in the US and Europe.

In Japan the market rose holding above 15,300 at its highest level since December 2007, as exporters gained on the back of a weaker yen.

The Chinese market continued higher again, up for a fifth day, up 6% in that time and recording its longest winning streak in 3-months, as the Shanghai Composite is now in the positive for the year, having fallen as much as -9% from its February peak.  The buyers have jumped in on speculation that the government is accelerating economic reform after saying investment projects for airports and gas fields won’t need pre-approval any more.  In Hong Kong the market eased .

For the session the Chinese Shanghai Composite closed up 0.2% at 2,305, the Hong Kong Hang Seng closed down -0.5% at 23,366, and the Japanese Nikkei closed up 0.1% at 15,381, while the South Korean KOSPI closed down -0.1% at 1,981.

Commodities

The Dollar Index was higher at 83.77 on a lower Euro, and the Aussie Dollar closed up at 0.9810..  Commodities prices traded lower.

Overnight the COMEX WTI Crude for MAY13 delivery closed down -0.6% at $US96.16, the COMEX Copper for May 13 delivery closed down -0.5% at 3.344, the COMEX Gold for JUN13 delivery closed down -0.5% at $US1,377.60.

ASX News Today

LEI – Leighton Holdings the construction giant says it’s not concerned about the recent woes of mining services companies due to its diverse business interests and cyclical nature of the industry.

MQG – MacBank increased their hybrid offer from $4oom to $600m due to its popularity.

NWS – News Limited has sold NRL club Melbourne to a private consortium gathered by NZ entrepreneur Bart Campbell.

RHL – Ruralco’s says earnings, hot and dry conditions have burned agribusiness sparking a half-year loss only a year after it yielded a $10 million profit.

RIO – Rio Tinto says Workers at a Newcastle coal terminal will stop work for eight hours on Friday as part of an ongoing industrial dispute at the facility.

SWM – Seven West Media boss Tim Worner has pledged to focus on producing quality content while cutting costs.

TGA – Thorn Group, says people with bad credit histories are flocking to the Radio Rentals’ brand, helping boost the revenues of its parent company by eight percent.

TSE – Transfield Services the the mining engineer has wiped nearly $141 million from the value, as a result of cost cutting in the mining sector

SGT – Optus says its rollout of its 4G network is expected to reach 70 percent of Australia’s metropolitan population by the middle of 2014.

Market Summary

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

US ADRs – Broadly  higher!!…

ANZ +1.9%, NAB -0.6%
BHP +1.6%, RIO +0.9%, NEM -1.1%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets eased overnight, after Moody’s said the US may face a downgrade.
*  European stocks markets started the week on a positive note, hovering around 5-year highs.
*  Asian stock markets ended higher yesterday, holding around its 5-year highs.
*  Commodities prices higher, Gold prices are trading lower around $US1,384, while crude-oil closed around $US96.

The Aussie market held at 5-year highs, above the 5200 and is looking to open higher today, as stock prices closed higher in Europe, but ended flat in the US.

SPI Futures is trading just above the key level of 5200, ended up 0.1% (or  7 points) at 5,227. The key levels for the ASX200 index today are 5180 to 5270.  Expect miners to see some support, as gold rebounded overnight, but gold still held below the $1,400 level and iron ore prices now down over 20% from its February highs.

It will be busy later in the week for economic data with Manufacturing PMI data from Europe and China and from the US FOMC meeting minutes and Trade data.

Gold finds support on the back of Moody’s downgrade warning for the US.

See below for ASX listed companies in the news today.

US Markets

US stock markets eased overnight, after Moody’s said the US may face a downgrade.

The three benchmark indexes all ended down -0.1% for the session. The Dow Jones remained around the 15,350 level. The S&P500 again held above the 1660 level at all-time highs and has closed higher for ten of the last thirteen trading sessions (up 17% for the year).  Around 200 of the S&P500 stocks are at 52-week highs, the most since 1993.  The gains have been broad based as over 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).  

The ten S&P sectors ended mixed with gains led by the Energy up sector over 1.4%,  followed by Financials and Industrials up 0.2%, while falls were led by Healthcare and  Consumer Staple sectors ended down around -0.7%.

Stock prices have been rising since the Fed Chairman Ben Bernanke confirmed that the Fed will continue its unprecedented stimulus until the jobless rate falls to 6.5 percent or inflation rises above 2.5 percent.  The S&P 500 has risen for past 6-months without a 5% pullback.

In commodities gold and silver rebounded after Moody’s Investors Service said US policy makers must address debt issues to avoid a credit-rating downgrade this year, sparking buy in the metals as a “safe haven”.

For the session Dow Jones closed down -0.1% at 15,335, the S&P500 closed down -0.1% at 1,666, and the NASDAQ closed down -0.1% at 3,496.

European Markets

Asian Markets

Asian stock markets ended higher yesterday  after ending higher for a second week, holding around its 5-year highs.

The MSCI Asia Pacific Index rose 0.4% for the session. The index is up 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation and as centrals banks remain supportive in the US and Europe.

In Japan the market rose holding above 15,300 at its highest level since December 2007, as exporters gained on the back of a weaker yen.

The Chinese market again saw some bargain hunting, as the Shanghai Composite is now in the positive for the year, having fallen as much as -9% from its February peak.  Property developers were higher after government data showed that housing prices continued to rise in April.  In Hong Kong the market also rose as traders speculated the government will not impose additional property curbs as the economy slows.

Of the around 430 companies on the MSCI Asia Pacific Index that reported their latest quarterly results since April, 53 percent have beaten analyst forecasts, according to Bloomberg.

For the session the Chinese Shanghai Composite closed up 0.7% at 2,300, the Hong Kong Hang Seng closed up 1.8% at 23,493, and the Japanese Nikkei closed up 1.5% at 15,361, while the South Korean KOSPI closed down 0.0% at 1,982.

Commodities

The Dollar Index was higher at 83.77 on a lower Euro, and the Aussie Dollar closed up at 0.9818.  Commodities prices traded higher.

Overnight the COMEX WTI Crude for MAY13 delivery closed up 0.7% at $US96.71, the COMEX Copper for May 13 delivery closed up 1.1% at 3.360, the COMEX Gold for JUN13 delivery closed up 1.4% at $US1,384.10.

ASX News Today

BHP – BHP Billiton, new chief executive Andrew Mackenzie has outlined plans to slash capital spending by almost 20%.

GPT – GPT Group the property owner, has sold its 50 percent stake in the Erina Fair shopping centre on the NSW central coast for $397 million.

LEI – Leighton Holdings the construction giant says it’s not concerned about the recent woes of mining services companies due to its diverse business interests and cyclical nature of the industry.

MQG – MacBank increased their hybrid offer from $4oom to $600m due to its popularity.

SGT – Optus says its rollout of its 4G network is expected to reach 70 percent of Australia’s metropolitan population by the middle of 2014.

MAH – Macmahon Holdings the mining services provider shares surged, after it detailed positive growth in a “changing and challenging environment”.

SYD – Sydney Airport has forecast larger distributions for its shareholders as its number of passengers continues to rise.

WBC – Westpac Bank has has dropped its one year fixed home loan rate for new customers to 4.79 per cent.

WES – Wefarmers is off target after Target’s profits have been hit by a late start to winter, which means Target’s EBITDA will plunge by 40% for FY2013.

WOR – Worley Parson joined other mine service companies down grading their profit forecasts, citing a slowdown in Western Australia’s mining industry for its profit downgrade.

Market Summary

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

US ADRs – Broadly  higher!!…

ANZ +0.4%, NAB 1.4%
BHP +0.6%, RIO +1.3%, NEM 5.4%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets rose for a fourth week, holding at another all-time high as consumer confidence rises.
*  European stocks markets ended the week higher, up for a fourth week and hovering around 5-year highs.
*  Asian stock markets ended higher for a second week, holding around its 5-year highs.
*  Commodities prices generally higher, Gold prices are trading lower around $US1,359, while crude-oil closed around $US96.

The Aussie market held at 5-year highs, around the 5200 and is looking to open higher today, as stock prices closed higher in Europe and in the US.

SPI Futures is trading just above the key level of 5200, ended up 0.3% (or  19 points) at 5,212. The key levels for the ASX200 index today are 5200 to 5260.  Expect miners to see some support, but gold miners will still weigh as gold held below the $1,400 level and iron ore prices now down over 20% from its February highs.

It will be a busy week for economic data with Manufacturing PMI data from Europe and China and from the US FOMC meeting minutes and Trade data.

The ASX 200 is set to push higher today.

See below for ASX listed companies in the news today.

US Markets

US stock markets rose for a fourth week, holding at another all-time high as consumer confidence rises.

The three benchmark indexes all ended up 1% for the session. The Dow Jones remained above the 15,350 level. The S&P500 again closed held at the 1660 level at all-time highs and up 2.1% for the week and has closed higher for ten of the last twelve trading sessions (up 17% for the year).  Nearly 200 of the S&P500 stocks are at 52-week highs, the most since 1993.  The gains have been broad based as over 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).

Stock prices have been rising since the Fed Chairman Ben Bernanke confirmed that the Fed will continue its unprecedented stimulus until the jobless rate falls to 6.5 percent or inflation rises above 2.5 percent.  All ten S&P sectors ended higher with gains led by the Energy and Industrials up sectors over 1.5%,  followed by Materials and  Technology  sectors all ended  up around 1.0%.   For the month the Dow Jones is up 5.6%, the S&P500 is up 7.6% and the NASDAQ is up 6.3%.

Trader sentiment was boosted as American’s confidence in the economy  rose in May to the highest level in nearly six years as rising real estate values and record  equities prices boosted household wealth.  Elsewhere the index of US leading indicators climbed in April, rebounding from March and iindicating the world’s largest econmony may be poised for further expansion.

For the session Dow Jones closed up 0.8% at 15,354, the S&P500 closed up 0.9% at 1,667, and the NASDAQ closed up 1.0% at 3,498.

European Markets

Asian Markets

Asian stock markets ended higher for a second week, holding around its 5-year highs.

The MSCI Asia Pacific Index ended eased -0.2% for the session. The index is up 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation and as centrals banks remain supportive in the US and Europe.

In Japan the market eased but held above 15,000 at its highest level since December 2007, on the back of a weaker yen. Japanese gross domestic product surprised, rising an annualised 3.5 percent in the three months through March, the most in a year (better than the forecast 2.7%), while fourth-quarter growth was revised to 1 percent.  The yen has fallen 18% this year and every time the yen falls below a key level, the Nikkei passes reached another milestone because it boosts corporate profits, especially for manufacturers and exporters.

The Chinese market saw some bargain hunting, having its best gain in 2-weeks, as the Shanghai Composite is now in the positive for the year, having  fallen as much as  -9% from its February peak.  In Hong Kong the market also rose, despite the Chinese Premier Li Keqiang signaled policy makers are reluctant to use stimulus to counter an economic slowdown.  Traders speculated the government will not impose additional property curbs as the economy slows.

Of the around 420 companies on the MSCI Asia Pacific Index that reported their latest quarterly results since April, 53 percent have beaten analyst forecasts, according to Bloomberg.

For the session the Chinese Shanghai Composite closed up 1.4% at 2,283, the Hong Kong Hang Seng closed up 0.2% at 23,082, and the Japanese Nikkei closed up 0.7% at 15,138, while the South Korean KOSPI closed up 0.8% at 1,986.

Commodities

The Dollar Index was higher at 83.77 on a lower Euro, and the Aussie Dollar closed down at 0.973.  Commodities prices traded higher.

Overnight the COMEX WTI Crude for MAY13 delivery closed up 0.9% at $US96, the COMEX Copper for May 13 delivery closed up 0.9% at 3.323, the COMEX Gold for JUN13 delivery closed down -1.9% at $US1,359.

ASX News Today

BHP – BHP Billiton, new chief executive Andrew Mackenzie has outlined plans to slash capital spending by almost 20%.

CBA – CommBank has lifted its third quarter profit by 12 percent to $1.9 billion.

GNC – Graincorp Australia’s largest grains handler has reported one-third profit drop as regulators consider a takeover bid from an American food giant.

MAH – Macmahon Holdings the mining services provider shares surged, after it detailed positive growth in a “changing and challenging environment”.

SYD – Sydney Airport has forecast larger distributions for its shareholders as its number of passengers continues to rise.

RIO- Rio is facing union troubles as the maritime union has accused the owners of a Newcastle coal terminal of “continued belligerence” amid an ongoing industrial dispute at the facility.

TAH – Tabcorp the gambling firm has begun legal action against the Victorian government over a poker machine levy set to cost the company millions of dollars.

VAH – Etihad has increased its stake in Virgin Australia after Virgin announced a profit warning issued by the airline.

WBC – Westpac Bank has has dropped its one year fixed home loan rate for new customers to 4.79 per cent.

WES – Wefarmers is off target after Target’s profits have been hit by a late start to winter, which means Target’s EBITDA will plunge by 40% for FY2013.

WOR – Worley Parson joined other mine service companies down grading their profit forecasts, citing a slowdown in Western Australia’s mining industry for its profit downgrade.

WPL – Woodside Petroleum is keeping an eye on an offshore gas field in Mozambique that is five times bigger than its North West Shelf project.

WRT – Westfield Retail Trust says consumer confidence is improving but shoppers are still cautious and sales growth is still low.

Market Summary

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

US ADRs – Broadly  higher!!…

ANZ +1.1%, NAB 0.1%
BHP +1.0%, RIO +0.6%, NEM -2.5%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets fell overnight,  easing back from another all-time high.
*  European stocks markets ended flat, hovering around 5-year highs overnight, as BoE raised its forecasts.
*  Asian stock markets ended lower yesterday, backing off its 5-year highs.
*  Commodities prices generally higher, Gold prices are trading around $US1,389, while crude-oil closed around $US95.

The Aussie market held at 5-year highs, around the 5200 and is looking to open flat today, as stock prices closed modestly lower in Europe and in the US.

SPI Futures is trading just above the key level of 5200, ended up 0.1% (or  9 points) at 5,177. The key levels for the ASX200 index today are 5130 to 5200.  Expect miners to remain under pressure with the falling commodity prices, with gold cracking the $1,400 level and iron ore prices now down over 20% from its February highs.

The Japanese market is at 4 1/2 year highs, driven by moves in the Japanese currency (Yen).

See below for ASX listed companies in the news today.

US Markets

US stock markets fell overnight,  easing back from another all-time high.

The three benchmark indexes all ended up over 0.4%, recovering from earlier selling due to soft manufacturing data. The Dow Jones closed remained above the 15,200 level. The S&P500 again closed held at the 1650 level near all-time highs and has closed higher for ten of the last eleven trading sessions (up 16% for the year).  Nearly 200 of the S&P500 stocks are at 52-week highs, the most since 1993.  The gains have been broad based as over 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).

All the ten S&P sectors ended lower, except for Technology up 0.5%, with falls led by the Healthcare and Consumer Discretionary sectors down over -1.1%, followed by Materials, Energy and Industrials sectors all ended down around -0.5%.  The Homebuilder index slumped -1.9% as all 11 members closed lower.

Traders took profits after the Fed Bank of San Francisco President John Williams said the central bank may begin slowing the pace of its $85 billion in monthly bond-buying amid signs the economy is gradually gaining strength.   Stock prices have been rising since the Fed Chairman Ben Bernanke confirmed that the Fed will continue its unprecedented stimulus until the jobless rate falls to 6.5 percent or inflation rises above 2.5 percent.

In economic news reports suggested a slowdown in US economic growth, as manufacturing in the Philadelphia region unexpectedly contracted in May for the first time in three months as new orders retreated and factories cut back on employment and hours, while jobless claims jumped by 32,000 to 360,000 in the week ended 11 May, the most since the end of March and housing starts slumped 16.5 percent in April, the most since February 2011.

For the session Dow Jones closed down -0.3% at 15,233, the S&P500 closed down -0.5% at 1,650, and the NASDAQ closed down -0.2% at 3,465.

European Markets

Asian Markets

Asian stock markets ended lower yesterday, backing off its 5-year highs.

The MSCI Asia Pacific Index ended gained 0.8% for the session. The index is up 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation and as centrals banks remain supportive in the US and Europe.

In Japan the market eased but held above 15,000 at 4 1/2 year highs, on the back of a weaker yen.  The pullback was despite Japanese gross domestic product surprising, rising an annualized 3.5 percent in the three months through March, the most in a year (better than the forecast 2.7%), while fourth-quarter growth was revised to 1 percent.  The yen has fallen 18% this year and every time the yen falls below a key level, the Nikkei passes reached another milestone because it boosts corporate profits, especially for manufacturers and exporters.

The Chinese market saw some bargain hunting, having its best gain in 2-weeks, as the Shanghai Composite is now only down -0.8% for the year, having  fallen around -9% from its February peak.  In Hong Kong the market also rose, despite the Chinese Premier Li Keqiang signaled policy makers are reluctant to use stimulus to counter an economic slowdown.

Of the around 420 companies on the MSCI Asia Pacific Index that reported their latest quarterly results since April, 53 percent have beaten analyst forecasts, according to Bloomberg.

For the session the Chinese Shanghai Composite closed up 1.2% at 2,252, the Hong Kong Hang Seng closed up 0.2% at 23,083, and the Japanese Nikkei closed down -0.4% at 15,037, while the South Korean KOSPI closed up 0.8% at 1,987.

Commodities

The Dollar Index was higher at 83.60 on a lower Euro, and the Aussie Dollar closed up at 0.9825.  Commodities prices traded higher.

Overnight the COMEX WTI Crude for MAY13 delivery closed up 0.9% at $US95.16, the COMEX Copper for May 13 delivery closed up 0.9% at 3.295, the COMEX Gold for JUN13 delivery closed down -0.7% at $US1,386.90.

ASX News Today

BHP – BHP Billiton, new chief executive Andrew Mackenzie has outlined plans to slash capital spending by almost 20%.

CBA – CommBank has lifted its third quarter profit by 12 percent to $1.9 billion.

FMG – Iron ore hopeful Brockman Resources is seeking access to Fortescue Metal Group’s rail infrastructure in the Pilbara region of WA.

GNC – Graincorp Australia’s largest grains handler has reported one-third profit drop as regulators consider a takeover bid from an American food giant.

MAH – Macmahon Holdings the mining services provider shares surged, after it detailed positive growth in a “changing and challenging environment”.

NWS – Foxtel says it will compensate its customers who did not receive a promised free television within 10 days as promised as part of a promotional offer.SYD – Sydney Airport has forecast larger distributions for its shareholders as its number of passengers continues to rise.

RIO- Rio is facing union troubles as the maritime union has accused the owners of a Newcastle coal terminal of “continued belligerence” amid an ongoing industrial dispute at the facility.

TAH – Tabcorp the gambling firm has begun legal action against the Victorian government over a poker machine levy set to cost the company millions of dollars.

VAH – Virgin Australia announces a profit warning issued by the airline.

WPL – Woodside Petroleum is keeping an eye on an offshore gas field in Mozambique that is five times bigger than its North West Shelf project.

WRT – Westfield Retail Trust says consumer confidence is improving but shoppers are still cautious and sales growth is still low.

Market Summary

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

US ADRs – Broadly  lower!!…

ANZ -1.2%, NAB -1.5%
BHP -0.2%, RIO -1.4%, NEM -0.4%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets continued higher overnight,  closing at another all-time high.
*  European stocks markets rose, again at new 5-year highs overnight, as BoE raised its forecasts.
*  Asian stock markets ended generally higher yesterday, despite lower commodity prices.
*  Commodities prices lower, Gold prices are trading around $US1,396, while crude-oil closed around $US94.

The Aussie market held at 5-year highs, around the 5200 and is looking to open higher again today, on index options expiry, as stock prices closed higher in Europe and in the US.

SPI Futures is trading just above the key level of 5200, ended up 0.1% (or 2 points) at 5,203. The key levels for the ASX200 index today are 5180 to 5230.  Expect miners to remain under pressure with the falling commodity prices, with iron ore prices now down 20% from its February highs.

The Aussie dollar has been crushed in the past month and is holding below parity.

See below for ASX listed companies in the news today.

US Markets

US stock markets continued higher overnight,  closing at another all-time high and has closed higher for nine of the ten nine trading sessions (up 16.4% for the year).

The three benchmark indexes all ended up over 0.4%, recovering from earlier selling due to soft manufacturing data. The Dow Jones closed remained above the 15,200 level. The S&P500 again closed held above the 1650 level another all-time high. The gains have been broad based as over 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).

The ten S&P sectors ended higher, except for Energy down -0.3%, with gains led by the Financials and Consumer Discretionary sectors up over 0.9%, followed by Materials, Healthcare, Technology and Industrials sectors all ended up around 0.4%.

Traders speculate the the Fed will continue to print money, as the the Fed Chairman Ben Bernanke has said he will continue unprecedented stimulus until the jobless rate falls to 6.5 percent or inflation rises above 2.5 percent.

In economic news manufacturing in the New York region unexpectedly shrank in May as factories received fewer orders and sales stalled, while US industrial production declined in April by the most in eight months, in response to broad-based cutbacks in factory output and indicating American manufacturers will provide little support for their flagging economy buffeted by weaker global demand and federal budget cuts.

For the session Dow Jones closed up 0.4% at 15,276, the S&P500 closed up 0.5% at 1,659, and the NASDAQ closed up 0.3% at 3,472.

European Markets

Asian Markets

Asian stock markets ended higher yesterday, as Japanese traders took their market traded at 4 1/2 year highs.

The MSCI Asia Pacific Index ended gained 0.8% for the session. The index is up 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation and as centrals banks remain supportive in the US and Europe.

In Japan the market closed above 15,000 for the first time since 2007, on the back of a weaker yen. The yen has fallen 18% this year and every time the yen falls below a key level, the Nikkei passes reached another milestone because it boosts corporate profits, especially for manufacturers and exporters.

The Chinese and in Hong Kong the markets rose, despite the Chinese Premier Li Keqiang signaled policy makers are reluctant to use stimulus to counter an economic slowdown. The Shanghai Composite has fallen around -9 percent from its February peak.

Of the around 420 companies on the MSCI Asia Pacific Index that reported their latest quarterly results since April, 53 percent have beaten analyst forecasts, according to Bloomberg.

For the session the Chinese Shanghai Composite closed up 0.4% at 2,225, the Hong Kong Hang Seng closed up 0.5% at 23,044, and the Japanese Nikkei closed up 2.3% at 15,096, while the South Korean KOSPI closed up 0.1% at 1,971.

Commodities

The Dollar Index was higher at 83.60 on a lower Euro, and the Aussie Dollar closed down at 0.989.  Commodities prices traded lower.

Overnight the COMEX WTI Crude for MAY13 delivery closed up 0.1% at $US94.30, the COMEX Copper for May 13 delivery closed down -0.3% at 3.277, the COMEX Gold for JUN13 delivery closed down -2.0% at $US1,396.20.

ASX News Today

BHP – BHP Billiton, new chief executive Andrew Mackenzie has outlined plans to slash capital spending by almost 20%.

CBA – CommBank has lifted its third quarter profit by 12 percent to $1.9 billion.

CSR – CSR the building products group has posted a $147 million loss, says it believes Australia’s housing market is recovering.

DXS – Dexus Property Group has sold five of its six remaining European industrial properties for a total of EUR16.5 million ($A21.72 million).

FXJ – Fairfax says the politicians need to adapt to the 24-hour news cycle and could be better off not talking to the media.

RIO – RIO Federal Environment Minister Tony Burke has approved Rio Tinto Alcan’s South of Embley bauxite mine and port development project in western Cape York.

SGT – Optus Australia’s second-biggest telco, has suffered a 7.5 percent slump in net profit for the first quarter.

UGL – United Group the engineering firm UGL has blamed a slowdown in resources and infrastructure investment for a big downgrade in its profit guidance.

MAH – Macmahon Holdings the mining services provider shares surged, after it detailed positive growth in a “changing and challenging environment”.

SKC- SkyCity Entertainment Group has penned a deal to build a $402-million convention centre in exchange for increased gambling concessions.

WRT – Westfield Retail Trust says consumer confidence is improving but shoppers are still cautious and sales growth is still low.

Market Summary

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

US ADRs – Broadly  lower!!…

ANZ -0.2%, NAB -0.3%
BHP -1.7%, RIO -2.1%, NEM -2.9%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets continued higher overnight, after a third straight week of gains.
*  European stocks markets rose towards new 5-year highs overnight.
*  Asian stock markets ended generally higher yesterday.
*  Commodities prices lower, Gold prices are trading around $US1,424, while crude-oil closed around $US94.

The Aussie market held at 5-year highs, around the 5200 and is looking to open higher again today, as stock prices closed higher in Europe and in the US.

SPI Futures is trading above the key level of 5200, ended up 0.6% (or 30 points) at 5,255. The key levels for the ASX200 index today are 5200 to 5270.  Expect traders to digest the $21 billion turnaround in the Federal Budget today.

The US S&P500 at another all-time high and has closed higher for eight of the past nine trading sessions (up 16% for the year).

See below for ASX listed companies in the news today.

US Markets

US stock markets continued higher overnight, after a third straight week of gains.

The three benchmark indexes all ended up over 0.8%, building on the gains of the previous week. The Dow Jones closed remained above the 15,200 level. The S&P500 again closed held above the 1650 level around another all-time high and has closed higher for eight of the past nine trading sessions (up 16% for the year). The gains have been broad based as around 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).

The ten S&P sectors ended higher with gains led by the Financials and Energy sectors up over 1.3%, followed by Materials, Healthcare, Technology and Industrials sectors all ended up around 1.1%. In economic news the National Federation of Independent Business reported confidence among small businesses climbed in April to a six-month high as the outlook for the economy and sales improved.

For the session Dow Jones closed up 0.8% at 15,215, the S&P500 closed up 1.0% at 1,650, and the NASDAQ closed up 0.7% at 3,463.

European Markets

Asian Markets

Asian stock markets ended generally higher yesterday, but Japanese traders took some profits off the table, as that market traded at 4 1/2 year highs.

The MSCI Asia Pacific Index ended gained 0.2% for the session. The index is up 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation and as centrals banks remain supportive in the US and Europe.

In Japan the market eased back from its highest level since December 2007, despite the support from the utilities sector, while in Hong Kong the market eased.

The Chinese market fell again, as JPMorgan cut its growth outlook for the world’s second-largest economy, citing softening domestic demand and property developers weighed on concerns that the government will act to curb growth in the sector.  The Shanghai Composite has fallen -9 percent from its February peak.

Of the around 390 companies on the MSCI Asia Pacific Index that reported their latest quarterly results since April, 52 percent have beaten analyst forecasts, according to Bloomberg.

For the session the Chinese Shanghai Composite closed down -1.1% at 2,217, the Hong Kong Hang Seng closed down -0.3% at 22,930, and the Japanese Nikkei closed down -0.2% at 14,758, while the South Korean KOSPI closed up 1.0% at 1,969.

Commodities

The Dollar Index was higher at 83.60 on a lower Euro, and the Aussie Dollar closed  up  at 0.990.  Commodities prices traded lower.

Overnight the COMEX WTI Crude for MAY13 delivery  closed  down -1.0% at $US94.21, the COMEX Copper for May 13 delivery  closed  down -2.0% at 3.292, the COMEX Gold for JUN13 delivery  closed down -0.7% at $US1,424.50.

ASX News Today

AZJ – Aurizon the rail operator, has begun talks to sell a stake in its rail track infrastructure that would free up money to expand and lead to a break up of the business.

BLY – Boart Longyear the mineral drilling services and products supplier  has named Jay Clement as its acting chief financial officer.

IFZ – Infratil is mulling the float of its Z Energy chain of petrol stations, reported a drop in full-year profit after writing down the value of its UK airports and recognising accounting
charges.

IPL – Incitec Pivot the explosives and fertiliser maker, says first half profit has dropped 23 percent with its fertiliser operations hit by the high Australian dollar.

MAH – Macmahon Holdings the mining services provider shares surged, after it detailed positive growth in a “changing and challenging environment”.

SKC- SkyCity Entertainment Group has penned a deal to build a $402-million convention centre in exchange for increased gambling concessions.

TEN – Ten Network will be broadcast the 2014 Winter Olympics

WRT – Westfield Retail Trust says consumer confidence is improving but shoppers are still cautious and sales growth is still low.

Market Summary

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

US ADRs – Broadly  lower!!…

ANZ -0.3%, NAB -0.6%
BHP -0.1%, RIO -1.9%, NEM -0.3%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets eased overnight, after a third straight week of gains.
*  European stocks markets eased back from 5-year highs overnight.
*  Asian stock markets ended mixed yesterday, but Japanese traders continue to push higher.
*  Commodities prices lower, Gold prices are trading around $US1,434, while crude-oil closed around $US95.

The Aussie market held at 5-year highs, around the 5200 and is looking to open modestly higher today, as stock prices closed flat in Europe and in the US.

SPI Futures is trading above the key level of 5200, ended up 0.3% (or 16 points) at 5,222. The key levels for the ASX200 index today are 5180 to 5250.  Expect market activity to be subdued ahead of tonight’s Federal Budget.

See below for ASX listed companies in the news today.

Economic Reports

Federal Budget tonight.

US Markets

US stock markets eased overnight, after a third straight week of gains, with the S&P500 and Dow Jones closing flat, after sales reports.

The three benchmark indexes all ended flat, but were up over 1% last week, building on the gains of the previous week. The Dow Jones closed remained above the 15,000 level. The S&P500 again closed held above the 1600 level around another all-time high and has closed higher for seven of the past eight trading sessions (up 15% for the year). The gains have been broad based as around 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).

The ten S&P sectors ended mixed with gains led by the Healthcare and Financials sectors up 0.8% and 0.3% respectively, while the Materials led the falls down -0.7%, followed by Technology and Industrials sectors ended down around -0.3%. The Commerce Department reported US retail sales unexpectedly rose percent in April following a -0.5 percent drop in March.

For the session Dow Jones closed down -0.2% at 15,092, the S&P500 closed flat at 1,634, and the NASDAQ closed up 0.1% at 3,439.

European Markets

Asian Markets

Asian stock markets ended mixed yesterday, but Japanese traders continue to push their market to new 4 1/2 year highs.

The MSCI Asia Pacific Index ended gained 0.3% for the session, after rising 1.5% last week. The index is up 9.7% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation.

In Japan the market continued even higher, holding above 14,000, on the back of the weaker yen, while in Hong Kong the market also fell.

The Chinese market eased back from its 2-week high, as economic reports overshadowed speculation the government will postpone the resumption of initial public offerings.  The Shanghai Composite has fallen 7.9 percent from its February peak.  The National Bureau of Statistics reported Chinese industrial output in April rose 9.3 percent on year and an 8.9 percent increase in March, while retail sales gained 12.8 percent (up from 12.6 percent previously).

Of the around 365 companies on the MSCI Asia Pacific Index that reported their latest quarterly results since April, 52 percent have beaten analyst forecasts, according to Bloomberg.

For the session the Chinese Shanghai Composite closed down -0.2% at 2,242, the Hong Kong Hang Seng closed down -1.4% at 22,990, and the Japanese Nikkei closed up 1.2% at 14,782, while the South Korean KOSPI closed down 0.0% at 1,949.

Commodities

The Dollar Index was higher at 83.19 on a lower Euro, and the Aussie Dollar closed up at 0.996.  Commodities prices traded lower.

Overnight the COMEX WTI Crude for MAY13 delivery closed down -0.9% at $US95.17, the COMEX Copper for May 13 delivery closed up 0.2% at 3.360, the COMEX Gold for JUN13 delivery closed down -0.2% at $US1,434.30.

ASX News Today

AZJ – Aurizon the rail operator, has begun talks to sell a stake in its rail track infrastructure that would free up money to expand and lead to a break up of the business.

DXL – DuluxGroup the paint maker, hopes the new homes market will pick up later in the year, but further interest rate cuts could be needed to stimulate the sector.

IPL – Incitec Pivot the explosives and fertiliser maker, says first half profit has dropped 23 percent with its fertiliser operations hit by the high Australian dollar.

RIO – Workers at a Newcastle coal terminal are preparing to meet with management in an attempt to avert a planned strike.

SKC- SkyCity Entertainment Group has penned a deal to build a $402-million convention centre in exchange for increased gambling concessions.

TEN – Ten Network will be broadcast the 2014 Winter Olympics

WRT – Westfield Retail Trust says consumer confidence is improving but shoppers are still cautious and sales growth is still low.

Market Summary

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

US ADRs – Broadly  mixed!!…

ANZ -1.3%, NAB +1.7%
BHP -1.3%, RIO -1.6%, NEM -1.5%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.

*  US stock markets ended higher for a third straight week, after strong earnings reports.
*  European stocks markets closed higher for a third week, finishing around 5-year highs.
*  Asian stock markets pushed higher for the week, as Japanese traders pushed the market to new 4 1/2 year highs.
*  Commodities prices lower, Gold prices are trading around $US1,443, while crude-oil closed around $US95.

The Aussie market held at 5-year highs, around the 5200 and is looking to open modestly higher today, as stock prices closed the week higher in Europe and in the US after strong earnings reports.

SPI Futures is trading above the key level of 5150, ended up 0.1% (or 6 points) at 5,207. The key levels for the ASX200 index today are 5190 to 5240.  Expect market activity to be subdued ahead of tomorrow’s Federal Budget.

Traders are continuing their buying after confirmation of continuing global stimulus at central banks and the RBA has joined the party. The RBA has surprised economists by cutting the cash rate by 25 basis points to 2.75%, the lowest level since the GFC and at levels not seen since 1959. Economists had forecast a one in two chance of a rate cut.

See below for ASX listed companies in the news today.

Economic Reports

Australian Bureau of Statistics (ABS) housing finance for March
National Australia Bank monthly business survey for April

US Markets

US stock markets ended higher for a third straight week, with the S&P500  and Dow Jones closing at another record close, after strong earnings reports.

The three benchmark indexes all ended higher over 1% for the week, building on the gains of the previous week. The Dow Jones closed above the 15,000 level for the first time ever, while the S&P500 again closed above the 1600 level for another all-time high. The gains have been broad based as around 85 percent of S&P 500 stocks are trading above their 50 gay moving average, according to Bloomberg (the highest level since 14 March).

The ten S&P sectors ended  generally higher with gains, led by the Healthcare and Consumer Staples  sectors all up over 0.9%, while Financials, Technology and Industrials sectors ended up around 0.4%, however the Materials and Energy sectors fell -0.1% and -0.5% respectively.

Of the around 430 stocks S&P500 companies that have reported their financial results so far this season, 72 percent have beaten estimates for profit and 53 percent have exceeded forecasts for sales, according to Bloomberg. Earnings at S&P 500 companies have risen 1.1 percent in the first three months of the year, significantly up from the analysts’ forecast fall of -1.4%.  Analysts are now forecasting that earnings will now grow 6.8% this year.

For the session Dow Jones closed up 1.0% at 15,118, the S&P500 closed up 1.2% at 1,633, and the NASDAQ closed up 0.8% at 3,436.

European Markets

Asian Markets

Asian stock markets pushed higher for the week, as Japanese traders pushed the market to new 4 1/2 year highs.

The MSCI Asia Pacific Index ended eased 0.3% for the session and was up 1.5% for the week. The index is up around 10% for the year and is on track for the longest winning streak since September 2009, on optimism over central bank stimulus, Japan will continuing to deploy more measures to beat deflation.

In Japan the market continued even higher, trading above 14,000 for the first time since June 2008.  The Chinese market continued higher to new a 2-week high, as the central bank is on standby to support domestic growth, while in Hong Kong the market also rose.

Of the around 330 companies on the MSCI Asia Pacific Index that reported their latest quarterly results since April, 51 percent have beaten analyst forecasts, according to Bloomberg.

For the session the Chinese Shanghai Composite closed up 0.6% at 2,246, the Hong Kong Hang Seng closed up 0.5% at 23,321, and the Japanese Nikkei closed up 2.9% at 14,607, while the South Korean KOSPI closed down -1.7% at 1,994.

Commodities

The Dollar Index was lower at 82.18 on a higher Euro, and the Aussie Dollar closed down at 1.001.  Commodities prices traded higher.

Overnight the COMEX WTI Crude for MAY13 delivery closed down -0.4% at $US95.66, the COMEX Copper for May 13 delivery closed up 0.5% at 3.368, the COMEX Gold for JUN13 delivery closed down -0.4% at $US1,443.

ASX News Today

ANZ – ANZ has reduced its mortgage rate by 0.27 percentage points, becoming the first big lender to cut its interest rate deeper than the official change in cash rate.

DLX – Dulux Group are reporting their first half results today

IPL – Incitec Pivot are reporting their first half results today

UML – Unity Mining says its associate GoldStone Resources’ drilling program revealed a surface gold anomaly at the Ngoutou Project in Gabon.

UNS – Unilife the developer and supplier of injectable drug delivery systems has announced strong third quarter results.

WRT – Westfield Retail Trust annual general meeting today

Ex-Dividend Today

Macquarie Bank
Westpac Bank

Market Summary

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

US ADRs – Broadly  lower!!…

ANZ -2.2%, NAB -0.8%
BHP -0.6%, RIO -0.8%, NEM -0.1%

By Michael Hevern
D2MX Investment Advisor

For trade ideas and recommendations on how to trade in this market, sign up for a free trial of the D2MX Daily Trading Report, call 1300 610 024 or email advisory@d2mx.com.au.