The market is down 98. The SFE Futures were down 71 this morning.
Wall St. closed down 186. Financials did most of the damage. The Dow was up 62 at best and down 204 at worst. Metals struggled overnight as did the Oil price. The Aussie dollar also went backwards, down to 82.65c from 84.36c yesterday morning. The September Voodoo takes a grip. First day of the traditionally worst month of the year starts traditionally.
RBA aftermath — left rates on Hold — General impression from the RBA Meeting yesterday is that interest rate rises are less imminent, with brokers that were suggesting a rise as early as next month now winding back their expectations to December. A number of brokers are now expecting no rate rise until February or later. The A$ fell, and the 10 year bond yield fell 10bp after the meeting. In fact looking at the 10 year bond yield it looks like expectations for a rate rise and a move from an easing bias to a tightening bias are now factored in.
- 2Q GDP number — stronger than expected — Seasonally adjusted figure came in at 0.6%, economists expected a 0.2% rise. This compares to the unrevised 0.4% in the March Q. Over the year to June, GDP rose 0.6% compared to expectations of +0.3%.
- In the news today … not a lot going on.
- Gunns (GNS) down 9.5% to 99.5c after completing its institutional offer after raising $115m at 90c.
- Nexus Energy (NXS) — down 4% — it is raising $74m via a 1-for-3.75 rights issue at 22c.
- Babcock & Brown Infrastructure (BBI) — Trading Halt — set to announce a cornerstone investor that will buy a key stake in the company. Last traded at 7.8c.
- National Australia Bank (NAB) provides an update on its ExCaps taxation assessments and says it won’t have any impact on cash earnings. NAB down 2.8%.
- Cockatoo Coal (COK) in a trading halt. Last traded at 35c.
- Australia Post is expanding into the $24bn general insurance market.
- The IPO of Carsales.com is next week. Investors will pay 350c each for 46.1m shares on offer.
- Telstra (TLS) has appointed 2 new directors. Charles Macek has decided to retire from the board.
- George Soros’s fund, Quantum Partners, is now a 19.9% shareholder of Marengo Mining (MGO), a Perth copper developer.
- IRESS Market Technology (IRE) and OrotonGroup (ORL) have both hit fresh yearly highs today.
- Fund manager Pimco says the global economy is heading back to a “new normal” of slower growth and Asian connected countries, such as Australia, will dominate future growth
The Dow Futures are up 13 at midday.
MARCUS PADLEY is the author of the MARCUS TODAY Daily Stockmarket Newsletter.
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