The market is up 58. The SFE Futures were up 25 this morning.

Dow Jones up 115. The Dow was up 123 at best. With more disappointing US economic data all focus was on Greece and the lead up to their election. US industrial production, consumer sentiment and Net Capital inflows all missed forecasts. The pro-bailout new democracy party has won the Greek election removing a significant market risk. The question is now how quickly they can form a government and a policy to resolve their debt situation. Greece will run out of cash no later than mid July if they cannot form government and make representations to the EU and secure the previously negotiated bailout. European markets were up on Friday to almost 4 week highs, with speculation that major central banks would join forces post a negative result in Greece if necessary. Italy was up 2.34%, France up 1.82% and Germany up 1.48%. Oil was up 12c to $84.03. Gold was up $8.50 to $1628.10. Metals were mostly up on the LME with Nickel up 1.28% and Copper up 1.25%. BHP and RIO ADRs were both up 2.28% and 3.37%. BHP up 29c on its close last Friday. The A$ is at 101.13c.

Main points:

  • The Dow Futures are up 85 as we write. The US market is now up 6% in anticipation of the Greek election result.
  • There is a G20 meeting in Mexico today and tomorrow.
  • Fairfax (FXJ) says they will cut 1,900 jobs in the next 3 years in a restructure they say will transform the company into a digital media company. They are putting a pay wall into The Age and Sydney Morning Herald websites and reducing the size of the printed papers. They have also sold down their Trade Me asset in NZ from 66% to 51% for $160m. Gina Rinehart is expected to be offered a board seat or two this week (speculation).
  • Macquarie (MQG) – JP Morgan point out that 29% of the volume traded over the last month was the company buying for their share buy-back. They have spent $300m out of $500m of the buyback and at the next AGM will ask for approval to buy another 15%. JP Morgan have a Neutral recommendation.
  • Transurban (TCL) announced they will write down the value of their US toll road holdings to zero and book an impairment charge of $138.1m. No change in distribution paying 29.5c FY.
  • Woolworths (WOW) – is undertaking plans to refurbish 170 stores across the country next year. Will add an extra $2.5bn in sales. 
  • Tabcorp Holdings (TAH) — plans to introduce the ability to place bets on the Australian sharemarket and commodity indexes.
  • Suncorp (SUN) — An article in the AFR talks about the possibility of SUN becoming the fifth pillar of the banking system via a merger with one of the regional banks.
  • Whitehaven Coal (WHC) — The press speculates that Nathan Tinkler could offer somewhere between 500c and 550c a share for the full takeover of WHC.
  • Echo Entertainment (EGP) has re-listed at 409c this morning post their $454m equity raising and profit warning. The theoretical ex rights price was 429c down from 449c.
  • New Cars Sales rose 2.4% in May, as 91,994 new vehicles were sold above last months figure of 89,812.

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