Stocks for Breakfast

8 Oct 09

Market Wrap for Thursday 8th October 2009

Shares closed at the highest in a year after the economy added jobs last month, defying estimates of falling employment. Banks led gains. The benchmark S&P/ASX200 index ended 1.6 per cent higher, or 72.9 points, to 4768.6 points, its strongest close since October 2 last year. The broader All Ordinaries index gained 67.5 points, or 1.4 per cent, to 4763.3.

Investors were encouraged by the shock fall in the unemployment rate to 5.7 per cent – economists had tipped a rise to 6 per cent – as companies added about 40,000 new positions. The Australian dollar also soared, breaking through the 90 US-cent mark, as investors bet more interest rate rises are on the way.

Xstrata Plc, the world’s fourth- largest copper supplier, may increase the estimated metal resource at its Frieda River project in Papua New Guinea after recent drilling results, the project’s co-developer said. Highlands Pacific Ltd. said Xstrata will complete an initial development study by mid-2010. Zug, Switzerland-based Xstrata may consider building a plant to process as much as 50 million metric tons of ore a year, Brisbane-based Highlands said today in a statement to the Australian stock exchange.

“Highlands anticipates a significant upgrade in Frieda resource statement in December,” Highlands said in the statement. The anticipated cash costs of the project “in the first five to 10 years would be significantly lower” than previous studies indicated, Highlands said, adding that copper could be extracted for less than 25 U.S. cents a pound.

Australia’s jobless rate fell for the first time in five months as employment unexpectedly surged, driving the currency to a 14-month high as traders bet the central bank will raise interest rates again next month. The number of people employed jumped 40,600 from August, the biggest gain in almost two years, cutting the jobless rate to 5.7 percent from 5.8 percent, the statistics bureau said in Sydney today. The median estimate of 20 economists surveyed by Bloomberg was for a decline of 10,000.

Today’s report supports Governor Glenn Stevens’ decision to unexpectedly raise interest rates this week, the first Group of 20 central bank chief to do so. The currency is set for its biggest weekly gain in more than four months, and 21 of 23 economists surveyed by Bloomberg News forecast borrowing costs will be raised another quarter point to 3.5 percent next month.

Investors braced for the start of earnings season by pulling out of AT&T, Verizon and other telecommunications companies, but buying banks such as Bank of America in a light-volume session Wednesday. Overall, the Dow Jones Industrial Average closed down 5.67 points, or 0.06%, to 9725.58, marking its first decline in three days. Telecom giants AT&T and Verizon Communications paced the index lower as the Federal Communications Commission chairman said he intends to proceed with Internet openness rules for cellular carriers. AT&T closed down 56 cents, or 2.1%, to 26.18, while Verizon fell 31 cents, or 1%, to 29.38.

Other indexes fared much better, with the Standard & Poor’s 500 tacking on 2.85, or 0.27%, to 1057.57. The Nasdaq Composite closed up 6.76, or 0.32%, to 2110.33. After two sessions of steady buying, with the Dow coming into Wednesday’s session up 244 points on the week, traders had come into the session with a little more caution. Notably, volume was particularly light as NYSE Composite volume totaled about 4.35 billion shares, compared with a 2009 average of nearly 6 billion

Source: Fairfax, Bloomberg, Wall Street Journal

Shares closed at the highest in a year after the economy added jobs last month, defying estimates of falling employment. Banks led gains. The benchmark S&P/ASX200 index ended 1.6 per cent higher, or 72.9 points, to 4768.6 points, its strongest close since October 2 last year. The broader All Ordinaries index gained 67.5 points, or 1.4 per cent, to 4763.3.

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29 Sep 09

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Market Wrap for Tuesday 29th September 2009

The Australian share market has ended firmly in the black, after a series of announced mergers in the US lifted optimism. At the close, the benchmark S&P/ASX200 index was up 75.7 points, or 1.6 per cent, at 4753.1, while the broader All Ordinaries gained 70.3 points, or 1.5 per cent, at 4747.2. All sectors were higher, with information technology leading the way, up 3.6 per cent, followed by financials at 2.0 per cent, while materials gained 1.6 per cent.

Australia’s budget deficit for the year ending June 30, 2009, was A$27.1 billion ($23.7 billion) Treasurer Wayne Swan said. This compares with a A$32.1 billion forecast he made in May. “This stronger-than-expected outcome is the result of a combination of various one-off factors and the effects of the government’s economic stimulus,” Swan said today in Canberra.

Interest rates at a half-century low, government spending on roads and schools, plus handouts to consumers helped the economy expand 1 percent in the first half of this year, boosting earnings at retailers such as Woolworth’s Ltd. Australia’s net debt was A$16.1 billion, which was A$11.5 billion less than forecast in May and equivalent to 1.3 percent gross domestic product.

U.S. stocks rallied on Monday, snapping a three-day losing streak, as a spurt of corporate takeovers in the technology and health-care sectors fueled optimism about share values. Mergers and acquisitions are typically viewed as bullish as it suggests companies are more optimistic about the business outlook.

The Dow Jones industrial average rose 124.17 points, or 1.28 percent, to end at 9,789.36. The Standard & Poor’s 500 Index gained 18.60 points, or 1.78 percent, to 1,062.98. The Nasdaq Composite Index shot up 39.82 points, or 1.90 percent, to 2,130.74.

With Monday’s gains, the Dow Jones industrial average held an advance of about 16 percent in the quarter so far, which would make it the index’s best such period since the fourth quarter of 1998. But the end of the third quarter on Wednesday may spur volatility as fund managers engage in what is known as “window dressing” — when they sell laggards in favor of outperformers to spruce up portfolios at quarter’s end.

Source: Bloomberg, Fairfax, Reuters

The Australian share market has ended firmly in the black, after a series of announced mergers in the US lifted optimism. At the close, the benchmark S&P/ASX200 index was up 75.7 points, or 1.6 per cent, at 4753.1, while the broader All Ordinaries gained 70.3 points, or 1.5 per cent, at 4747.2. All sectors were higher, with information technology leading the way, up 3.6 per cent, followed by financials at 2.0 per cent, while materials gained 1.6 per cent.

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29 Sep 09

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Market Wrap for Monday 28th September 2009

The Australian share market has ended lower as investors sought more evidence of improving company performance to justify the recent run to a 12-month high. At the close, the benchmark S&P/ASX200 index was down 35.9 points, or 0.8 per cent, at 4677.4, while the broader All Ordinaries fell 37.9 points, or 0.8 per cent, to 4676.9.

TPG Inc. and Blum Capital plan to sell their stake in Myer Group in Australia’s biggest initial public offering in two years as buyout firms seek to profit from the stock market’s 50 percent rally since March. Myer, Australia’s largest department store, plans to raise as much as A$2.34 billion ($2 billion) selling shares at A$3.90 to A$4.90 each, it said in a prospectus today. The stock will be offered at 14.3 to 17.3 times forecast earnings, compared with a 17.2 multiple for David Jones Ltd., Myer’s biggest rival.

Texas-based TPG, which teamed up with Blum and members of the Myer family to buy the retailer in 2006 for A$1.4 billion, will test demand for new shares after the biggest drought of IPOs in 16 years. The sale may herald a run of offerings by private- equity-owned retailers, contributing to more than A$10 billion in capital raisings by June 2010, according to UBS AG.

The rally in U.S. stocks, which stumbled in recent days on worries about the economic recovery and continued government stimulus, will be tested this week by crucial data on growth and jobs. Investors are set to pore over September non-farm payrolls, the final reading of second-quarter gross domestic product and several other big economic reports.

The data comes amid signs the rally in stocks, which has lifted the Standard & Poor’s 500 index .SPX some 54 percent since early March, could be fizzling out. The market suffered three straight days of losses last week and the S&P put in its biggest weekly drop since early July, with data on Friday showing new orders for long-lasting U.S. manufactured goods falling by their biggest margin in seven months.

This week the focus likely will be on Friday’s monthly U.S. government jobs data. The 9.7 percent U.S. unemployment rate is a major concern for investors because of the impact on the economy and, in particular, consumer spending.

Source: Bloomberg, Fairfax, Reuters

The Australian share market has ended lower as investors sought more evidence of improving company performance to justify the recent run to a 12-month high. At the close, the benchmark S&P/ASX200 index was down 35.9 points, or 0.8 per cent, at 4677.4, while the broader All Ordinaries fell 37.9 points, or 0.8 per cent, to 4676.9.

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24 Sep 09

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Market Wrap for Wednesday 23rd September 2009

The Australian share market climbed 1.5 per cent today, led by oil and gold stocks. At the close, the benchmark S&P/ASX200 index was up 70/4 points, or 1.5 per cent, at 4734.1, while the broader All Ordinaries rose 69.9 points, or 1.5 per cent, to 4741. Gains were across all sectors, with energy shares jumping 2.2 per cent, materials up 1.2 per cent and financial gaining 1 per cent.

Gold advanced as a weakness in the dollar bolstered the precious metal’s appeal as an alternative investment. The dollar declined to a one-year low against the euro on speculation Federal Reserve policy makers will signal today they will keep interest rates low. The U.S. currency fell against 13 of 16 major counterparts on concern that Group of 20 leaders, meeting in Pittsburgh starting tomorrow, will call for a reduction in global trade imbalances that may cause further gains in other currencies. Gold for immediate delivery gained as much as 0.5 percent to $1,019.03 an ounce and traded at $1,015.97 at 9:54 a.m. in Singapore. The metal reached a record high of $1,032.70 in March 2008.

U.S. stocks rose on Tuesday, as investors bet the U.S. Federal Reserve will stick to its accommodative policy to foster economic recovery, boosting growth-sensitive sectors such as financials, technology and industrials. The gains were broad-based, with all but three of the 10 S&P 500 industry sectors ending higher. Energy and other natural resources stocks were underpinned by resurgent global commodity prices as the U.S. dollar retreated.

The Federal Reserve began a two-day policy-setting meeting on Tuesday. Its policy statement is due on Wednesday around 2:15 p.m. (1815 GMT). With no change expected in interest rates, investors probably will focus on the bank’s assessment of the economic outlook, particularly after Chairman Ben Bernanke said last week that the recession was “technically” over.

The Dow Jones industrial average gained 51.01 points, or 0.52 percent, to end at 9,829.87. The Standard & Poor’s 500 Index rose 7.00 points, or 0.66 percent, to 1,071.66 – a fresh 11-month closing high. The Nasdaq Composite Index climbed 8.26 points, or 0.39 percent, to 2,146.30.

Source: Bloomberg, Fairfax, Reuters

The Australian share market climbed 1.5 per cent today, led by oil and gold stocks. At the close, the benchmark S&P/ASX200 index was up 70/4 points, or 1.5 per cent, at 4734.1, while the broader All Ordinaries rose 69.9 points, or 1.5 per cent, to 4741. Gains were across all sectors, with energy shares jumping 2.2 per cent, materials up 1.2 per cent and financial gaining 1 per cent.

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23 Sep 09

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Moffs Market Mood Weekly Note Tuesday 22 September 2009

MARKET COMMENTS

The market keeps rocketing higher, yet a number of concerning events continue to appear:

1) Another 2 US banks shut down over last weekend.

2) Market commentary suggesting the FDIC insurance fund is in the red (from mortgage related write-downs) and need $500b in more Govt capital injections.

3) The $USD is bouncing after a technical reversal last Friday off fresh 2009 lows ($USD usually have inverse correlation with global markets).

4) RSI on S&P500 now in “overbought” territory @ 87.

Do not get complacent. Again I repeat; Buy when others are despondently selling, Sell when others are greedily buying…. If you won’t sell; protecting your portfolio is dirt cheap right now, ask yourself

WHY NOT?

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23 Sep 09

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Market Wrap for Tuesday 22nd September 2009

The Australian share market has ended 0.3 per cent lower, led down by the energy sector and following weak overseas leads. At the close, the benchmark S&P/ASX200 index was down 13.7 points, or 0.3 per cent, at 4663.7 points, while the broader All Ordinaries index slipped 13 points, or 0.3 per cent, to 4671.1 points. Among the sectors, energy stocks dropped 1.4 per cent, materials were down 0.3 per cent and financial shares fell 0.2 per cent.

Australia, the world’s largest shipper of coal, iron ore and wool, kept its forecast for a decline in commodity exports this fiscal year little changed on a fall in contract prices for bulk commodities. Sales may be A$158 billion ($137 billion) in the year ending June 30, 2010, the Canberra-based Australian Bureau of Agricultural and Resource Economics said today in an e-mailed statement. That compares with its June estimate of A$160 billion and a revised A$197 billion for the previous year.

Australia’s export earnings for energy and minerals, at the second-highest on record, will be 23 percent lower than a year earlier, mainly due to lower contract prices for bulk commodities. Economic activity has picked up in China and other emerging Asian economies and is expected to strengthen in the next few quarters, the bureau said.

The Dow industrials and the S&P 500 index fell on Monday as a drop in oil and other commodity prices hurt energy and materials stocks. But the Nasdaq rose, buoyed by a broker’s upgrade in the biotechnology sector. Light crude futures fell more than 3 percent, settling below $70 a barrel, hurt by concerns about demand despite hopes for economic recovery. The Reuters-Jefferies CRB index of commodities tumbled 2.2 percent, its largest percentage drop in five weeks. The dollar index rose 0.5 percent after three weeks of declines and further hurt commodity prices, as investors scaled back short positions in anticipation of the Federal Reserve’s decision on interest rates later this week.

Source: Bloomberg, Fairfax, Reuters

The Australian share market has ended 0.3 per cent lower, led down by the energy sector and following weak overseas leads. At the close, the benchmark S&P/ASX200 index was down 13.7 points, or 0.3 per cent, at 4663.7 points, while the broader All Ordinaries index slipped 13 points, or 0.3 per cent, to 4671.1 points. Among the sectors, energy stocks dropped 1.4 per cent, materials were down 0.3 per cent and financial shares fell 0.2 per cent.

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21 Sep 09

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Market Wrap for Monday 21st September 2009

The Australian share market has ended lower as profit takers moved in after last week’s strong rally. But companies with exposure to the United States economy bucked the trend by showing strong gains. At the close, the benchmark S&P/ASX200 index was down 15.8 points, or 0.3 per cent, at 4677.4, while the broader All Ordinaries lost 9.6 points, or 0.2 per cent, to 4684.1.

Gold slipped further on Monday after failing to revisit last year’s record around $1,030 an ounce, wth sluggish offtake from jewellers across Asia stepping up the selling pressure. Gold rallied to $1,023.85 on Thursday, its strongest since March 2008, on uncertainties over the sustainability of the global economic recovery, but the dollar’s rebound from a 1-year low against the euro eventually spurred selling. Spot gold was quoted at $1,004.25 an ounce by 0214 GMT, down $1.90 from New York’s notional close on Friday. Bullion has gained as much as 16 percent this year.

U.S. stocks could extend their rally and the Dow industrials may climb above 10,000 this week, should the Fed’s policy-makers and economic data support the view the economy is recovering from recession. The Federal Open Market Committee will meet on Tuesday and Wednesday, with investors anxiously awaiting the policy-makers’ assessment of whether the economy is improving.

The week’s key economic data will include U.S. existing home sales, new home sales, a report on new orders of durable goods such as washing machines and refrigerators, and a final reading for September on consumer sentiment – all likely to put the expectations for recovery to the test. A raft of initial public offerings are also expected to price, making it the biggest week for initial public offerings in the United States in nearly two years in a sign of growing confidence in the market.

Source: Fairfax, Reuters

The Australian share market has ended lower as profit takers moved in after last week’s strong rally. But companies with exposure to the United States economy bucked the trend by showing strong gains. At the close, the benchmark S&P/ASX200 index was down 15.8 points, or 0.3 per cent, at 4677.4, while the broader All Ordinaries lost 9.6 points, or 0.2 per cent, to 4684.1.

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21 Sep 09

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Tasty Tips – Local and Global News

1. Dow rises 36 pts or 0.37% to 9820, S & P up 3 pts or 0.265 to 1068. Market moved higher on heavy turnover due to September expiry. With very little economic news around to give investors a guide stocks edged cautiously higher as most analysts are tending to play the “overbought” card.

2. Gold fell $3.20 to $1010.30 with silver also losing 20 cents to $17.06 and platinum $3.30 to $1338.20. News that the IMF will sell 403 tonnes of gold to raise approx $13b did little to affect the price as most of the fall was attributed to a stronger $US

3. Base metals were lower on the LME with lead and copper down 4% and 3.3% respectively. Aluminium, zinc and nickel all fell around 2.5%. Tin went against the trend registering a small rise

4. Oil fell 43 cents to $72.04 on a stronger $US in featureless trade

5. European markets were mixed with the CAC and DAX easing while the FTSE rose slightly as selected buying in defensives issues offset some profit taking in commodity based stocks, although trading volumes were very light

6. $AUS currently trading at 86.73 US cents

7. Independent assessor says PT Bumi Resources’ 70 cent bid for the remaining shares in Herald Resources is neither fair nor reasonable

8. Royal Bank of Scotland becomes the 2nd bank behind Lloyds to try and find ways of diluting its involvement in the British governments expensive insurance scheme for toxic assets

9. Switzerland reportedly getting tougher on its banks worrying some new regulations could restrict business

10. Qantas says it is yet to see signs of improvement in business conditions

11. Citigroup have a “HOLD” on AMP

12. Goldman Sachs have “BUYS” on DJS, PPL and PMV with “HOLDS” on ORL, MAP, SHV, SGP and AIA

13. Perth’s commercial property market predicted to experience a massive fall in the price of prime office property according to a report by BIS Shrapnel

14. Australian market down 3.5 pts to 4690 in early trade, New Zealand up 16 pts to 3172 in morning trade

eggs-benedict

Dow rises 36 pts or 0.37% to 9820, S & P up 3 pts or 0.265 to 1068. Market moved higher on heavy turnover due to September expiry. With very little economic news around to give investors a guide stocks edged cautiously higher as most analysts are tending to play the “overbought” card.

Gold fell $3.20 to $1010.30 with silver also losing 20 cents to $17.06 and platinum $3.30 to $1338.20. News that the IMF will sell 403 tonnes of gold to raise approx $13b did little to affect the price as most of the fall was attributed to a stronger $US

Base metals were lower on the LME with lead and copper down 4% and 3.3% respectively. Aluminium, zinc and nickel all fell around 2.5%. Tin went against the trend registering a small rise

Oil fell 43 cents to $72.04 on a stronger $US in featureless trade

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17 Sep 09

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Market Wrap for Thursday 17th September 2009

Australian shares have ended the day 1.4 per cent higher as investors pushed up resources stocks on optimism that global growth will recover more quickly than expected. At the close, the benchmark S&P/ASX200 index was up 64.5 points, or 1.4 per cent, at 4714.9, but off the day’s high of 4749.7. The broader All Ordinaries gained 61.2 points, or 1.3 per cent, to 4714. All sectors were higher, with financial stocks jumping 1.6 per cent, materials up 1.4 per cent and energy shares gaining 0.7 per cent.

U.S. stocks rose for a third day on Wednesday, hitting fresh 2009 highs in a broad-based rally following economic data that suggested a stronger-than-anticipated global recovery. Energy and manufacturing companies were among the strongest, benefiting from data indicating improved industrial demand and a falling dollar, which makes American exports more competitive in world markets.

The Dow Jones industrial average was up 108.30 points, or 1.12 percent, at 9,791.71. The Standard & Poor’s 500 Index was up 16.13 points, or 1.53 percent, at 1,068.76. The Nasdaq Composite Index was up 30.51 points, or 1.45 percent, at 2,133.15.

Volume was above average on the New York Stock Exchange, with 1.58 billion shares changing hands, above last year’s estimated daily average of 1.49 billion, while on the Nasdaq, about 2.76 billion shares traded, higher than last year’s daily average of 2.28 billion.

European stock index futures pointed to a higher open on Thursday, gaining ground for the ninth time in 10 sessions, tracking strong gains on Wall Street overnight and in Asia on renewed recovery hopes. Futures for the Euro Stoxx 50 and German DAX futures were both up 0.7 percent and French CAC futures were up 0.6 percent.

Source: Fairfax, Reuters

Australian shares have ended the day 1.4 per cent higher as investors pushed up resources stocks on optimism that global growth will recover more quickly than expected. At the close, the benchmark S&P/ASX200 index was up 64.5 points, or 1.4 per cent, at 4714.9, but off the day’s high of 4749.7. The broader All Ordinaries gained 61.2 points, or 1.3 per cent, to 4714. All sectors were higher, with financial stocks jumping 1.6 per cent, materials up 1.4 per cent and energy shares gaining 0.7 per cent.

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17 Sep 09

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Market Wrap for Wednesday 16th September 2009

The Australian share market has bounced to a new high for 2009, helped by soaring Telstra shares one day after they were walloped by the Government’s plan to split the company. At the close, the benchmark S&P/ASX200 index was up 110.1 points, or 2.4 per cent, at 4650.4 points, its highest close since October 3 last year and easily breaking the 4600-level that had acted as a ceiling over the past weeks. The broader All-Ords jumped 105.6 points, or 2.3 per cent, to 4652.8.

Gold rose to hover around $1,010 on Wednesday as the dollar hit a one-year low against a basket of major currencies, boosting the metal’s appeal as an alternative investment. Growing optimism about the economy has prompted investors to sell the dollar and snap up riskier assets such as stocks and commodities, helping to lift gold above $1,000 an ounce last week.

U.S. stocks rose on Tuesday to 2009 highs after stronger manufacturing and retail sales data boosted commodity prices and shares of materials companies. Tuesday’s gains lifted the S&P 500 above the 1,050 level for the first time since early October. The improvement in retail sales in August reassured investors about a rebound in U.S. economic demand. A rise in the government’s Producer Price Index signaled increased consumption of raw materials.

The Dow Jones industrial average .DJI rose 56.61 points, or 0.59 percent, to close at 9,683.41. The Standard & Poor’s 500 Index .SPX gained 3.29 points, or 0.31 percent, to 1,052.63. The Nasdaq Composite Index .IXIC added 10.86 points, or 0.52 percent, to 2,102.64.

Source: Fairfax, Reuters

The Australian share market has bounced to a new high for 2009, helped by soaring Telstra shares one day after they were walloped by the Government’s plan to split the company. At the close, the benchmark S&P/ASX200 index was up 110.1 points, or 2.4 per cent, at 4650.4 points, its highest close since October 3 last year and easily breaking the 4600-level that had acted as a ceiling over the past weeks. The broader All-Ords jumped 105.6 points, or 2.3 per cent, to 4652.8.

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17 Sep 09

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Tasty Tips – Local and Global News

1. Dow rises 108 pts or 1.1% to 9791, S & P up 16 pts or 1.5% to 1068. Equities closed at their highest level since October 6th led by financials, particularly insurers. Strong metal gold and oil prices drove miners and energy stocks higher. Tullow Oil rose $21 to $199 on news of a strike off the coast of Sierra Leone, a find analysts believe could lead to further discoveries in that area. Market was also aided by a 0.8% increase in industrial production for August with the CPI figure up 0.4% in line with economists’ expectations

2. Gold rose $13.90 to $1020.20 on a weaker $US, silver added another 43 cents or 2.5% to $17.43.

3. Base metals all rose between 2% and 6% with Lead the best performer in active trading

4. Oil rose $1.41 to $72.34 on news of a larger than expected decline in US crude reserves to the lowest level since January, and the $US falling to its lowest level against the euro in nearly a year

5. Major European markets all rose around 1.5% on the better economic news from the U.S. and Bernanke’s comments a day earlier

6. $AUS currently trading at 87.32 US cents, a 12 month high

7. Venezuela and China unveil a $US16b deal to drill for oil in the Orinoco basin

8. UBS heads the table in fees and commissions from the $147b in capital raisings by Australian companies

9. UK unemployment climbs to 7.9%, its highest rate in 13 years

10. U.S. current account deficit falls 5.5% in 2nd quarter to its lowest level in over 7 years

11. Macquarie Airports says it is seeing early signs of a recovery in air traffic numbers

12. Survey shows Australian business confidence is at a 2 year high

13. Goldman Sachs have a “BUY” on GNC with “HOLDS” on AWB, AIA, TEL, BWP, MAP and SDL

14. Deutsche Bank have a “BUY” on MAP with a “SELL” on BLD

15. Lion Nathan’s board reiterates its support for Kirin’s offer for the remainder of the company’s shares

16. Australian market up 45 pts or 1% to 4698 in early trade , New Zealand up 22 pts or 0.73% to 3140 in morning trade

chocmilk

Dow rises 108 pts or 1.1% to 9791, S & P up 16 pts or 1.5% to 1068. Equities closed at their highest level since October 6th led by financials, particularly insurers. Strong metal gold and oil prices drove miners and energy stocks higher. Tullow Oil rose $21 to $199 on news of a strike off the coast of Sierra Leone, a find analysts believe could lead to further discoveries in that area. Market was also aided by a 0.8% increase in industrial production for August with the CPI figure up 0.4% in line with economists’ expectations

Gold rose $13.90 to $1020.20 on a weaker $US, silver added another 43 cents or 2.5% to $17.43.

Base metals all rose between 2% and 6% with Lead the best performer in active trading

Oil rose $1.41 to $72.34 on news of a larger than expected decline in US crude reserves to the lowest level since January, and the $US falling to its lowest level against the euro in nearly a year

Major European markets all rose around 1.5% on the better economic news from the U.S. and Bernanke’s comments a day earlier

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14 Sep 09

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Tasty Tips – Local and Global News

1. Dow loses 22 pts or 0.23% to 9605, S & P down 1.4pts to 1042. Market traded in a narrow range between positive and negative territory before finishing slightly easier after a 5 day rally . The largest falls were in the energy sector due to the weaker oil price where Chevron and Exxon fell just under 1%.

2. Gold jumped $9.60 to $1006.40 closing above $1000 for the first time since February as the $US hit new lows against the euro

3. Oil lost $2.65 to $69.29 after the 4 day rally. Profit taking ahead of the weekend coupled with concerns the commodity is overpriced with stockpiles still high helped push the October contract down

4. European markets were little changed although the FTSE managed to rise 0.5% in quiet trade

5. Base metals were easier on the LME with Zinc falling just under 3% and Lead down 2.5%. Copper , Aluminium and nickel fell marginally while Tin was the only gainer rising 1.2%

6. $AUS currently trading at 86.20 US cents

7. RIO receives approval from Brazilian authorities to sell its Corumba iron ore mine to Vale SA

8. Cadbury criticises Kraft for having a “low growth” business model in the wake of the rejection of Kraft’s takeover bid

9. China hits out at US tariffs on its tyre exports and plans to investigate possible unfair practices in the US export of car parts creating more tension between the 2 countries

10. IMF chief warns the global crisis isn’t over yet despite more positive signs from Europe’s larger economies

11. The Bank for International Settlements says financial markets are showing signs of normalising with money markets recovering to levels not seen since early last year

12. Japan Airlines considers a $3.24b capital raising to help finance restructuring according to a report in a Japanese newspaper

13. The final investment decision for the $50b Gorgon gas project appears imminent with an announcement expected today

14. NAB reported to be under close scrutiny by the ACCC over its $385m move for Challenger’s mortgage business

15. Sigma posts a 5% 1st half profit rise to July 31st of $32.2m, up from $30.7m in pcp. Interim div 3 cents unchanged

16. Deutsche Bank have a ‘BUY” on CMJ with “HOLDS” on BHP, NWS and ABB and a “SELL” on WHS

17. Goldman Sachs have a “BUY” on TRS with “HOLDS” on ASX, WHS, UGL and MND and a “SELL” on IRE

18. Citigroup have “BUYS” on CMJ and WHS

19. Australian market down 16 pts or 0.34% to 4579 in early trade, New Zealand up 10 pts or 0.33% to 3147 in morning trade

toast

Dow loses 22 pts or 0.23% to 9605, S & P down 1.4pts to 1042. Market traded in a narrow range between positive and negative territory before finishing slightly easier after a 5 day rally . The largest falls were in the energy sector due to the weaker oil price where Chevron and Exxon fell just under 1%.

Gold jumped $9.60 to $1006.40 closing above $1000 for the first time since February as the $US hit new lows against the euro

Oil lost $2.65 to $69.29 after the 4 day rally. Profit taking ahead of the weekend coupled with concerns the commodity is overpriced with stockpiles still high helped push the October contract down

European markets were little changed although the FTSE managed to rise 0.5% in quiet trade

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10 Sep 09

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Market Wrap for Thursday 10th September 2009

The share market ended more than 1 per cent higher as hopes of an economic recovery lift sentiment. Gains had earlier been trimmed following employment data that showed more job losses than expected. At the close, the benchmark S&P/ASX200 index was up 48.6 points, or 1.1 per cent, at 4570.8, while the broader All Ordinaries rose 46.4 points, or 1 per cent, to 4573.5.

Australian employment fell in August by almost twice as much as economists estimated, driving down the nation’s currency on expectations the central bank won’t raise interest rates anytime soon. The number of people employed dropped 27,100 from July, when it rose a revised 33,700, the statistics bureau said in Sydney today. The median estimate of 21 economists surveyed by Bloomberg was for a decline of 15,000. The jobless rate held at 5.8 percent.

Falling employment adds to signs the economy may slow in coming months after reports yesterday showed retail sales unexpectedly fell in July and home-loan approvals ended a record nine-month run of gains as the effect of government stimulus spending wanes. Traders today pared bets on when central bank Governor Glenn Stevens will raise borrowing costs from a half- century low of 3 percent.

OPEC early on Thursday agreed to hold output targets steady after top exporter Saudi Arabia looked to economic strength to bolster the oil price and dismissed bulging inventories. As widely expected, the roughly three-hour meeting begun late on Wednesday saw no need to change production formally, although some OPEC members called for stricter compliance with existing curbs. From the outset, ministers, led by top exporter Saudi Arabia, said high oil prices of above $71 a barrel meant there was no need for action.

U.S. stocks closed higher for a fourth straight day on Wednesday, sending the Standard & Poor’s 500 index to its best finish so far this year as industrial and technology companies gained from a weak dollar. The Dow Jones industrial average was up 49.88 points, or 0.53 percent, at 9,547.22. The Standard & Poor’s 500 Index gained 7.98 points, or 0.78 percent, at 1,033.37. The Nasdaq Composite Index rose 22.62 points, or 1.11 percent, at 2,060.39.

Source: Bloomberg, Fairfax, Reuters

The share market ended more than 1 per cent higher as hopes of an economic recovery lift sentiment. Gains had earlier been trimmed following employment data that showed more job losses than expected. At the close, the benchmark S&P/ASX200 index was up 48.6 points, or 1.1 per cent, at 4570.8, while the broader All Ordinaries rose 46.4 points, or 1 per cent, to 4573.5.

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8 Sep 09

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Market Wrap for Tuesday 8th September 2009

The Australian share market ended the day sharply higher, led by the miners and banks and following gains on European markets. At the close, the benchmark S&P/ASX200 index was up 69.4 points, or 1.6 per cent, at 4523.8, while the broader All Ordinaries rose 66.7 points, or 1.5 per cent, to 4527.8. Among the sectors, materials stocks jumped 2.1 per cent, financials rose 1.9 per cent and energy shares gained 1.3 per cent.

Australian business confidence jumped in August to its highest level in almost six years, increasing pressure on the central bank to raise borrowing costs from a half-century low as the economy rebounds. The sentiment index rose 8 points to 18, the highest level since October 2003, according to a National Australia Bank Ltd. survey of more than 550 companies questioned between Aug. 24 and Aug. 28, and released in Sydney today. A figure above zero shows optimists outnumber pessimists.

Kraft Foods said it was intent on pursuing Britain’s Cadbury, which soared in value after it snubbed a premium-rich bid from the U.S. group, reinforcing hopes of a broader-based pick-up in merger activity. Analysts said North America’s biggest food group might have to raise its 10.2 billion pound ($16.7 billion) offer by up to 40 percent after shares in the world’s No.2 candy and chocolate maker increased by almost half on news of the approach. The company’s biggest institutional shareholder, Legal & General Investment Management, said in a statement that it thought the approach materially undervalued Cadbury, and supported management in opposing the deal.

Iron ore shipments from Australia’s Port Hedland, the largest exporter of the steelmaking material, increased by 14 percent in August as China boosted purchases. Total exports were 14.2 million metric tons in August, up from 12.5 million tons a year earlier, according to data on the port’s Web site. China, the world’s biggest consumer, bought 9.8 million tons in August, 31 percent more than a year earlier.

Annual contract prices for iron ore may rise 20 percent next year on “tight” market conditions and increasing steel production in China, UBS AG said on Sept. 1. UBS joins Bank of America Merrill Lynch and JPMorgan Chase & Co., in forecasting an increase next year after this year’s 33 percent decline.

Source: Bloomberg, Fairfax, Reuters

The Australian share market ended the day sharply higher, led by the miners and banks and following gains on European markets. At the close, the benchmark S&P/ASX200 index was up 69.4 points, or 1.6 per cent, at 4523.8, while the broader All Ordinaries rose 66.7 points, or 1.5 per cent, to 4527.8. Among the sectors, materials stocks jumped 2.1 per cent, financials rose 1.9 per cent and energy shares gained 1.3 per cent.

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8 Sep 09

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Tasty Tips – Local and Global News

1. Wall St closed for Labour Day holiday

2. Gold remained steady at $996.60 with other precious metals little changed

3. Base metals rose between 0.5% and 1.8% on the LME with zinc the exception down 1.%

4. Oil lost 2 cents to close at $68.00

5. European markets posted gains of around 0.75% with Kraft’s bid for Cadbury creating most interest

6. $AUS currently trading at 85.5 US cents

7. AGL Energy selected as the renewable energy supplier for South Australia’s new desalinisation plant

8. Kuwait’s oil minister sees no need to cut production and believed OPEC were in agreement to maintain current output

9. Atlas Iron bids for Warwick Resources valuing the target at $64.4m by offering 1 Atlas share for every 3 Warwick shares

10. Deutsche Bank have “HOLD” recommendations on CSR, SEK and ELD

11. Goldman Sachs have “BUYS” on AQP, LGL and MCU with “SELLS” on CEU and SIP

12. Citigroup have “HOLDS” on TOL and SIP

13. Downer EDI says it has new contracts and work under management worth $500m

14. Australian market up 41 pts or 0.93% to 4502 in early trade, New Zealand up 13 pts or 0.41% to 3135 in morning trade

1. 200 jobs will be lost at Huntsman’s petrochemical plant after the US based company announced the closure of the Melbourne operation

2. Australian business confidence soars to its highest level in almost 6 years in August

3. Energy Minerals receives an $83.6m cash offer of $1.02 a share for 70% of the company from China Uranium Development

4. FerrAus says the Chinese government owned China Railway Materials has agreed to take a 12% stake in the company equating to 22.9m shares at a price of 55 cents

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