The market is down 20. The SFE Futures were down 25 this morning. Greek Euphoria fades. It only took a day.

Dow Jones down 25. The Dow was up 14 at best and down 71 at worst. The NAHB Housing Market Index rose by 1 to 29 in June, highest level since May 2007 (Housebuilders rose) but all eyes were on the Euro zone with Spain’s borrowing costs now reaching all time highs — 10 year bond yield at 7.16% (up 24bp) after hitting 7.29%. The focus has gone from “Greek Euphoria” to “Spain in trouble”. Dow down. S&P and NASDAQ up. European markets were mixed with the focus now shifting back to the borrowing costs of Spain and Italy. Spain was down 2.96% (Banks fell), Italy down 2.85% and France was down 0.69%. The Greek market was up 3.64%. G20 officials have signaled that Greece has to stick to the original terms of the EU bailout and that there was going to be no loosening on resolution policies. Base metals on the LME were mostly lower with Lead down 1.56%, Zinc down 1.5%, Nickel down 1.22% and Tin down 1.07%. Gold is up 60c to $1628, Oil was down $1.04 to $82.99. BHP and RIO ADRs were up 1.42% and 1.12%. BHP looks to open down 7c on our market today. The A$ is at 101.18c.

Main points:

  • World leaders await “categorical imperative” talks in Greece. Conservative leader Antonis Samaras along with his New Democracy party held coalition talks after being urged by President Carolos Papoulias that “The country cannot be ungoverned for even an hour”.
  • Fairfax (FXJ) — Gina Rinehart has requested the position of deputy chairman along with two additional board seats and for the right to make editorial decisions after she increased her stake from 13% to 18.7%. FXJ is down 3.85% to 62.5c.
  • Echo Entertainment (EGP) — Singapore’s Genting has increased their stake to 7.65% drawing closer to James Packer’s 10% stake. EGP is down 1.04% to 428c which is still a remarkable performance considering the capital raising at 330c and a profit warning. Obviously a bid premium remains.
  • JB Hi-Fi (JBH) — A large parcel of JBH shares were sold at 840c yesterday morning. The biggest parcel was 4.7m shares or roughly 4.8% sold for $39.7m. JBH is up 0.59% to 859c.
  • Lynas Corp (LYC) was up as much as 13% yesterday after they announced the Malaysian government had rejected an appeal against their operating licence in Malaysia. Positive news for the company but still a long way to go. LYC is up 1.6% to 95c.
  • DuluxGroup (DLX) has extended the timeframe for their $188m takeover offer of Alesco (ALS) to the 20th July. DLX is down 1.63% to 301c & ALS is up 0.5% to 202c.
  • Singapore Telecoms’ Optus (SGT) has acquired Vividwireless Group from Seven Group Holdings. The new network will deliver benefits to Optus such as faster broadband to households. SGT is unchanged on 248c.
  • RBA released minutes from this month’s policy meeting which gave no real indication of any further rate cuts but said that if the  European gets worse or there are signs the world economy has weakened then a lower cash rate is possible

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