Markets should continue to rally until the end of the year, thanks to the resolution of the US debt ceiling.
The market is up 66 points.
Dow Jones was up 61 points to 15,570 closing on its high.
The S&P was up eight to 1760. Earnings results the key driver.
Halfway mark for US earnings season — 243 companies have reported so far. 68% of these have exceeded earnings forecasts but only 54% are ahead on revenue. Earnings growth of 3.4% so far (assumes remaining companies report in line with forecasts).
China tightens liquidity — The Chinese central bank withdrew liquidity for the third time in two weeks, raising mild concerns of a credit crunch.
Oil rose 0.76%to US$97.85.
Gold rose US$2.20 to US$1352.5 per ounce.
The US$ rose slightlyagainst most major currencies. The Aussie dollar came off and is now trading at US$0.9585.
VIX volatility index fell 0.83% to 13.09.
US treasuries were slightly stronger — the 10 year yield was 1 basis point lower at 2.515%.
European share were flat. The UK FTSE was marginally stronger on GDP data.
The UK recovery gathers momentum — GDP rose 0.8% in the September quarter, the fastest pace in more than three years. This compares with 0.7% in the June Quarter and is up 1.5% on year ago levels.
European bonds were slightly stronger, but peripheral markets were weaker.
Base metal prices mostly stronger — up by 1% or more. Copper and nickel lagged.
US EARNINGS RESULTS
Proctor & Gamble — down 0.76% Amcol — down 1.76% UPS — up 1.19% Amazon — up 9.39% Dow Chemical — down 1.02% Amazon — up 8.35%
Bank results season this week. ANZ tomorrow. All the banks need to do is come in in line with expectations to keep investors invested. There is usually a lot of complaining about the banks and their record profits over the results season, but customers pain is shareholders gain so you should welcome it. Analysts expect an ANZ profit of around $6.4 billion. WBC is expected to report a profit of around $7.1 billion and may reward shareholders with a special one-off dividend. CBA announced its annual profit of $7.8 billion in August. It will report results for the September quarter on November 6. NAB is expected to report a $5.92 billion profit.
RIO Tinto (RIO) — Has sold its 50.1% stake in the Queensland Clermont mine to GS Coal, a joint venture between Glencore Xstrata and Sumitomo Corporation. The sale price of $1.015 billion is believed to have exceeded expectations.
Brambles (BXB) — Has released an information pack to investors outlining details of the proposed de merger of the Recall business. Shareholders will vote on the scheme of arrangement on 3 December.
Sundance Resources(SDL) — Has announced details of its plans to issue convertible notes and options to Noble Resources, raising $40 million to develop the Mbalam-Nabeba iron ore project.
Evolution Mining (EVN) — First quarter gold output down 4.8% to 107,195ozs. It sees second quarter output above 100,000.
GPT Group (GPT) — September quarter results presentation and strategy update.
Ardent Leisure (AAD) — Sept quarter earnings. Maintained earnings momentum and reported positive trading trends. EBITDA up 19.4% over pcp.
RCR Tomlinson (RCR) — Mr Andrew Phipps appointed as CFO.