Markets worldwide seem to have fully recovered from the effects of the US government debt ceiling negotiations and shutdown.
The market is up 23 points.
Dow Jones was up 96 points to 15,509.
The S&P was up 6 to 1752.
Oil rose 0.36%to US$97.21.
Gold rose US$12.30 to US$1346.30 per ounce.
The US $ fellagainst most major currencies. The Aussie dollar was down slightly and is now trading at US$0.9620.
VIX volatility index fell 1.64% to 13.20.
US treasuries were weaker — the 10 year yield was 2 basis points higher at 2.525%.
European share were stronger. The German DAX was up 0.68% and the UK FTSE up 0.58%.
European bonds were slightly weaker, but Portuguese bonds rose.
Base metal prices were stronger — led by aluminium up 0.96% and nickel up 0.60%.
US EARNINGS RESULTS
Ford — up 1.37%
3M — up 0.24%%
Symantec — down 12.71%
Dow Chemical — down1.02%
Amazon — up 8.35% in after hours trade
Microsoft — up 5.55% in after hours trade
Western Digital — down 1.36% in after hours trade
Zynga — up 11.17 in after hours trade
Ratings agency Fitch has cut their Chinese GDP growth forecast for 2014 from 7.5% to 7.0%.
The PBOC (People’s Bank of China, China’s Central Bank) declined to make a cash injection for a third day.
Iron ore price still holding up … up 30c. Has established itself above $130 despite the broker forecasts of $80-90 for next year. Now $133.50.
Flash numbers out of China — Much of yesterday’s action and the boost to markets overnight came from some better than expected Chinese data. The HSBC Flash PMI rose to 50.9 October versus 50.2 in September and expectations of 50.4. This was a seven month high and suggests the world’s second-largest economy and Australia’s biggest trading partner is gaining some economic momentum.
Bugging Angela Merkel — Could there be a less interesting job than listening to Angela Merkel’s phone calls? As far as interesting gossip is concerned I’m not sure a European politician is quite up there … (or maybe they are!?).
Warrnambool Cheese & Butter (WCB) — Canadian giant Saputo lifting its offer to $449 million or $8 a share trumping Murray Goulburn’s offer of $7.50 a share. WCB earlier backed the Saputo offer and urged shareholders to reject the Murray Goulburn bid, along with an offer from Bega Cheese.
BHP Billiton (BHP) — AGM. It sees a recovery in the global economy and expect China to grow over 7% next year and the US economy to grow despite monetary risks. It says Europe still facing challenges and near-term uncertainty will continue. Overall global commodity demand rising 75% over the next 15 years.
Asciano (AIO) — First quarter volume update — Expects financial year 2014 EBIT growth to be weaker than financial year 2013. It sees difficult conditions for the Pacific National Rail and Terminal units. Net tonne kilometres increased 33% pcp reflecting new contracts and strong organic growth.
AMP (AMP) — Third quarter cash flows, AUM and Wealth Protection Update. Cash flows to the AMP platforms doubled for the September quarter compared to September quarter 2012. Assets under management were up 5% over the quarter to $96.7 million.
Insurance Australia Group (IAG) — Has received about 600 bushfire claims to date and has settled 50% of total-home claims.
Resmed (RMD) — Record September quarter financial results of $357.7, up 5% from September quarter 2012. Net income rose 14% and diluted EPS also up 14% from September quarter 2012.
Transfield Services (TSE) — AGM and update of company renewal. Announced JV to fund new coal seam gas drilling and work-over rigs, sale of 50% share of Transfield Worley New Zealand JV to WorleyParsons for $30 million and the pending sale of 49% share of Transfield Mannai facilities management business in Qatar.
BC Iron (BCI) — Quarterly production. BCI reported strong production with record exports. The Nullagine joint Venture (NJV) operated in line with guidance and achieved record 1.62 million wet metric tonnes for the quarter, up 13% from the September quarter 2012. Other highlights were progression with a low-grade beneficiation trial, formalisation of an alliance for exploration in Brazil and the appointment of Chris Hunt as CFO.
Australian Agricultural Company (AAC) will pay $27.1 million for two Northern Territory cattle stations as it prepares to open an abattoir in Darwin next year.