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Morning Market Report

Aug 9, 2013

Morning Market Report

The local market stayed steady despite a number of surprise announcements from major players.

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The market is down 27 points. The Dow Jones finished up 23. It was up 86 at best and down 53 at worst. Now 15498.

The S&P 500 closed up 7 and is still below 1700 at 1697.

Market helped by better than expected Chinese trade numbers yesterday with Exports up 5.1% (Est. +2.0%) and Imports up 10.9% (Est.+1.0%). Trade surplus to fell from $27.1 billion to $17.8 billion.

German trade surplus was better than expected.

Greek unemployment hit 27.6%.

Gold down up $24.60 to $1310.

The Japanese market was down another 1.59%yesterday having fallen 4% the day before. The Chinese market was down 0.09%.

No waves from the Bank of Japan meeting.

Resources well up with BHP up 4.62% and RIO up 3.33% in the US with BHP closing at the equivalent of 91c up on its close in Australia yesterday. RIO was reacting to a combination of the Chinese numbers and its interim results last night which if anything were a bit below expectations.

European markets mostly up — the UK FTSE up 0.28%, the German Dax up 0.70%, the French CAC up 0.64% with Spain up 1.14%, Italy up 1.83%, Greece up 2.46%.

Oil price down 97c to $103.40.

Spot iron ore was unchanged at $133.10.

JP Morgan fell 0.9% — the company is being investigated over its mortgage-backed securities business.

US Economics last night — Initial Claims: Actual $333,000; consensus $340,00; prior $326,000; (revised $328,000).  Continuing Claims: Actual $301,000; consensus $297,000, prior $295,000.


  • China’s CPI has remained flat at 2.7%. Economists had forecast a rise to 2.8%.
  • RBA has released a statement on monetary policy — Growth forecasts were lowered down to 2.25% from 2.5% as expected. 
  • Tabcorp Holdings (TAH) — Has posted a net profit of $126.6 million below an expected $139 million and down 63% due to the expiry of a key Victorian gaming licence. Revenue was down 30% to $2.1 billion.
  • Henderson Group (HGG) — Interim results were out last night with pre-tax numbers around 1% ahead of expectations with earnings up 10% on a lower tax charge. 46% rise in 1H profit to a record $172 million.
  • Newcrest (NCM) — Another (!) Profit downgrade — Has again written down assets after closer examination of their operations following a sharp slide in the price of gold. It now expects to report total impairment charges of $6.2 billion when it announces its financial year results next week. In June it said write-downs would be between $5-6 billion.
  • News Corp (NNC) — Boss Kim Williams has resigned. Julian Clarke appointed as new CEO.
  • ANZ has cut its headline rate 25 basis points.
  • SingTel (SGT) — Is considering an initial public offer of its Optus Satellite unit after drawing lower than expected bids for the business.
  • The RBA will put out their quarterly statement on monetary policy today with expectations that they will downgrade at least their 2013 GDP forecast to December 2 2% to 2.25% which compares to the government forecast of 2.75%.
  • Tom Waterhouse has sold his online betting business to William Hill in the UK for $30 million.
  • Kevin Rudd and Tony Abbott with have an open debate at the Press Club in Canberra on Sunday.
  • Telstra (TLS 513c) — Closed up 2.4% yesterday after announcing its results. They were a touch (2%) better than expected. Net profit of $3.813 billion (up 12%) against consensus of $3.77 billion. Dividend of 14c as expected.
  • Rio Tinto (RIO 6068c) — Closed up 3.33% in the US overnight after posting their earning results after market yesterday. 1H underlying earnings came in at $4.2 billion down 18% which was slightly below consensus. Dividend of 83.5c up 15% as expected.
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