The market is down 78. The SFE Futures were down 93 this morning.

Wall St. closed down 268 overnight. The S&P 500 hit an eight month low. The Dow closed under 10,000 for the first time since June 9 and was down 3 at best and down 327 at worst overnight.

The Chinese market fell 4.3% yesterday after the US Conference Board revised their leading economic index for China to a 0.3% gain, less than the 1.7% gain it reported on June 15. Citibank wrote some research on China saying it faced strong headwinds. US bank analyst Meredith Whitney, credited with predicting (starting) the GFC, says the US sharemarket is certain to double dip. US stocks exposed to China got thumped. The VIX jumped 18%. Baltic Dry index down 13% in a week. The costs of insuring European bonds at record highs. Metals down 5-7%. Oil fell $2.31 to $75.94, Gold put on $3.80 to $1242.40 and the Aussie dollar destroyed in one night to 84.85c from 87.17c.

It is pretty quiet on the company news front today…the overall performance of the market is dominating the headlines.

  • Front page of the AFR says Resources Minister Martin Ferguson and Wayne Swan want support from miners for a compromise on the RSPT. The Gillard government appear keen to tie up a deal as soon as possible and announce an election immediately.
  • Downer EDI (DOW) in the news again this morning. DOW fell another 6.3% yesterday and is down another 7c to 367c on concerns that leaked emails issues could only be the tip of the iceberg. They announced this morning they have sold their 49% stake in MB Century Drilling to Mohamed Al Barwani Holdings Company.
  • Rio Tinto (RIO) announced they will exercise warrants to buy $393m worth of shares in Ivanhoe Mines and lift their stake to 30%. The warrants entitle RIO to buy 46m shares at 854c a share. They could take their stake to 44% if they exercise all their warrants and convert a $350m load into shares. RIO down 3.17% to 6625c.
  • Qantas (QAN) announce passenger numbers in May increased by 5.6% but yields, which is a key profitability measure, continued to go backwards. QAN down 3c to 220c.
  • QBE Insurance (QBE) has issued $US500m lower tier-two notes through a private placement to refinance debt maturing in August. QBE down 25c to 1805c.
  • A heap of economic data is out today. Australian Job Vacancies fell 2.8% in seasonally adjusted terms in the previous quarter, Australian Home Sales fell 6.4% in May from April and credit to the private sector increased to a seasonally adjusted 0.5% in May from April.
  • Stocks hitting fresh 52 week lows include: 36 of them — notables include ASX Ltd (ASX), AWE Ltd (AWE), Brambles (BXB), Downer EDI (DOW), Primary Health Care (PRY), QBE Insurance (QBE) and Sims Metal Management (SGM).

MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.

For a free 5 day obligation free trial of the MARCUS TODAY newsletter (and no we won’t ask for a credit card number) please Click Here —  you will receive our renowned and popular Daily email about the stockmarket with all the stuff you need to know ahead of the trading day including overnight developments, news, comments, rumours, broker stuff and Ideas from Marcus and his Team. You will also be given a password to the MARCUS TODAY website including access to our Recommended Portfolio which is actively managed on behalf of subscribers … no “set & forget”. Everything you need to effortlessly managed your own long term investment portfolio.

It includes an Income Portfolio. And for the traders we monitor short and medium term trades on top of the portfolio. Members also get access to our Database —  all the numbers with comments on the ASX 200 stocks and more. Members also get access to our Educational section which includes an archive of Marcus’s Educational and Entertaining articles.  We are sure you will enjoy and profit from what we offer. Thousands of subscribers enjoy and profit from our services every day. We have one of the highest re-subscription rates in the financial newsletter industry.

For your FREE TRIAL — Click here

To Subscribe to MARCUS TODAY — Click Here

We also offer a FREE END OF DAY EMAIL — Click here — A free summary of the day in the market.

To buy MARCUS’S BOOK “Stock Market Secrets” — Click here

Peter Fray

Save 50% on a year of Crikey and The Atlantic.

The US election is in a little over a month. It seems that there’s a ridiculous twist in the story, almost every day.

Luckily for new Crikey subscribers, we’ve teamed up with one of America’s best publications, The Atlantic for the election race. Subscribe now to make sense of it all, and you’ll get a year of Crikey (usually $199) and a year’s digital subscription to The Atlantic (usually $70AUD), BOTH for just $129.

Peter Fray
Editor-in-chief of Crikey