The market is up 12. The SFE Futures were up 7 this morning.

Dow Jones up 26. Dow Jones was up 46 at best and down 29 at worst. US were markets were up with better than unexpected ISM numbers and hopes that the G7 emergency conference call overnight would come to something (doesn’t seem to have concluded anything – long on talk short on decision). The ISM Index was up to 53.7 up from 53.5 above the consensus forecast of 53.4. European markets were mixed. Spain’s IBEX up 0.45%, Italy was up 0.63% with Germany down 0.15%. Oil was up 24c to $84.22. Gold was up $4.40 to $1618. The London market and the LME were closed for a second day as part of the Queen’s Jubilee celebrations. Copper down a touch on COMEX. ADRs of BHP +0.6% and RIO +1.42% and BHP was up 26c on last night’s close in Australia. The A$ is at 97.46c.

Main points:

  • Australian GDP rose by 1.3% in the three months to March. Economists had been expecting GDP to rise by 0.6% in the for an annual rate of 3.3%. The AUD has jumped from 98.1c to 98.32 US cents.
  • Bernanke speaks tomorrow at 10am and is likely to repeat that QE3 is available if required.
  • Ten Network (TEN) has announced a $200m capital raising to help boost their balance sheet through the offer of new shares to existing shareholders at a price of 51c — its a 3 for 10 — no specific reason just strengthening the balance sheet “given the uncertain environment”. TEN is in a trading halt.
  • Warrnambool Cheese and Butter Factory Co (WCB) issued a profit warning yesterday and now expects a 20%-30% fall in profit. The downgrade in FY profit guidance was due to weak international markets, a decline in the price received for internationally traded dairy products and an increase in the supply of dairy products. WCB is unchanged at 335c.
  • Bank of Queensland (BOQ) is the first bank to lower their rates following the RBA rate cut yesterday. BOQ has cut standard variable rates on their home and business loans by 20bps. BOQ trades on a PE of 41.6x and has a yield of 7.4%. The other banks have yet to follow and the general expectation is that they will cut by 15bp. BOQ is down 0.69% to 650.5c.
  • Qantas Airways (QAN) fell almost 19% yesterday hitting an all time low after issuing a profit warning. CEO Alan Joyce defended his strategy which includes terminating long-haul routes and expanding alliances with overseas airlines to return the international operations to profitability by 2014. QAN is down another 4.11% to 110.75c.
  • Hastie Group (HST), currently in administration, has saved about 400 jobs by selling two of their troubled engineering companies. HST appointed administrators on May 28 after talks with banks and new investors to extend its loans broke down when the company discovered an employee had been falsifying accounts.
  • Whitehaven Coal (WHC) says they are carrying out a ramp up program to bring the longwall at their Narrabri underground mine into full production. WHC is up 6.31% to 412.5c.

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