The market is having a good day — up 50. The SFE Futures were up 20 this morning.

Wall Street closed down 40 overnight. The Dow was up 89 at best and down 100 at worst. The “Europhoria” waned overnight as it hit home that the Euro zone needs to reduce its debt to GDP ratio from 6.1% to the required 3% and to do so will impact euro growth. Metals struggled on the LME, the oil price fell $1.21 to $75.94 and the Aussie dollar lost ground to 89.48c from 90.28c. Gold was the big mover overnight putting on $17.20 to $1218.

The Federal Budget was released last night. Budgets are rarely market movers, and this one is no exception. The Budget also explains why they rushed out the Resources Super Tax a week earlier. Without it the budget would have lost its main headline of going into surplus three years earlier than expected.

In other news today…

  • Commonwealth Bank of Australia (CBA) released their 1Q Trading Update. The numbers are in line with forecasts but some brokers said it lacks quality (common criticism of the banks recently). Cash earnings for the quarter came in at $1.5bn. CEO tells us the environment will remain challenging. CBA up 27c to 5512c.
  • CSR Ltd (CSR) up 2.7% to 170.5c after announcing a better-than-expected FY profit result. Net profit (excluding significant items) beat company guidance and was 8% ahead of what Patersons had expected. Shareholders will vote on the demerger in August.
  • Transurban (TCL) rejects and improved takeover offer from their major shareholders. Canadian shareholders Canada Pension Plan Investment Board (CPPIB), CP2 Ltd and Ontario Teachers’ Pension Plan offered 557c a share (worth $7bn) but TCL’s management have deemed it inadequate. TCL is in a trading halt — last traded at 492c — as they raise capital for their Lane Cove Tunnel acquisition.
  • Peabody says their revised offer for Macarthur Coal (MCC) of $16 a share from $15 a share offers “excellent and compelling value”. Patersons maintain their HOLD recommendation on MCC which is up 11c today to 1323c.
  • Infigen Energy (IFN) announced they have been shortlisted, together with their partner, Suntech Power Holdings, for assistance under the government’s $1.5bn solar flagship program. IFN up 3.8% to 81.5c.
  • Asciano (AIO) has signed a contract with Toll Holdings (TOL) to haul rail freight, with expected revenues of up to $1bn over 5 years. AIO is unchanged at 164c a share and TOL has put on 2c to 667c.
  • SP AusNet (SPN) announced a 42% rise in FY profit to $209m. Profit (excluding significant items) increased 18% to $209m from $177.2m. The result was better than consensus figures. They declared a final distribution of 4c. SPN up 1.5c to 89.5c.
  • Stock hitting fresh 52 week highs include: Andean Resources (AND) and Eldorado Gold (EAU).

The Dow Futures are down 29 at midday.

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