The market is up 59. The SFE Futures were up 56 this morning.

The Dow Jones closed up 102 overnight. Dow up 119 at best and down 66 at worst. The big news overnight was Italian Prime Minister Silvio Berlusconi saying he will resign after the new budget measures currently making their way through parliament is approved. The yield on Italy’s benchmark 10-year bond jumped to 6.77%, the highest since the euro’s introduction in 1999 and close to the 7% level that saw Greece, Ireland and Portugal seek international bailouts. The oil price put on $1.41 to $96.93 and Gold fell $4.50 to $1786.66c. Metals were mixed overnight on the LME and the Aussie dollar improved to 103.92c from 103.66c.

Main points:

  • §  Chinese CPI numbers are in line with expectations up 5.5% for October and down from 6.1%. PPI numbers are +5.0% against Est. 5.8% versus the prior 6.5%. Good numbers.
  • §  Housing finance numbers have come in better than expected up 2.2% in Sept versus expectations for 1.5%.
  • Myer Ltd (MYR) has reported that first quarter sales down 5.1% on a like-for-like basis and down 3.5% on the previous quarter. The result was in line with the company’s expectations and they continue to expect full year sales to be flat.   MYR up 14c to 247c.
  • Downer EDI (DOW) have confirmed full earnings guidance. They expect full year net profit to recover up to $180m from the previous year’s full year net loss. DOW up 7% to 338c.
  • CSR Ltd (CSR) net profit in the 6 months to September 30 was up 13% from the previous first half to $34.9m. They now expect full year operating profit to be at the lower end of the market’s expectation range of $82 million to $100 million. CSR will pay a 6¢ interim dividend. CSR up 1% to 239c.
  • White Energy (WEC) has resumed trading after an update on its 51% owned KSC’s Tabang Operation in Indonesia. It was found that “upgrading the Tabang run of mine coal may no longer deliver acceptable economic returns”.  WEC down 44% to 84.5c.
  • UGL Ltd (UGL) is in talks with DTZ Holdings about a possible takeover bid for DTZ. But they say there is no certainty that a firm offer will be made. UGL up 3% to 1322c.
  • Computershare (CPU) say they expect first half earnings to fall by around 15% from a year earlier due to tough and volatile markets. CPU down 6c to 820c.
  • SP Austnet (SPN) posted a net profit of $146.2 million in the 6 months to September 30, down 11.9% from a year earlier. SPN up 1.5% to 99.5c.
  • Today is the last day to buy ANZ Bank (ANZ) and the National Australia Bank (NAB) before they go ex-dividend 76c and 88c (respectively) tomorrow.

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