The market is down 31. The SFE Futures were down 14 this morning.

US market down 124. The Dow was down 194 at worst on the back of disappointing employment numbers. Jobs numbers came in at 80K against forecasts of 100K that had been upgraded to as much as 120K post the ADP Employment number on Friday that had come in above expectations. The US unemployment rate came in at 8.2% (unchanged for the past three months). European markets had their biggest daily losses in two weeks. Spain was down 3.10%, Italy down 2.63%, Germany down 7.92%, France down 1.88% and the FTSE was down 0.53%. Banking stocks were the worst performers with the Euro STOXX down 4.3%. Spanish 10 year Bond yields lifted back to a high of 7.04% before backing off to 6.87%. Italian 10 year yields are at 5.99%. Metals were all down on the LME with Nickel down 3.34%, Copper down 2.14% and Lead down 1.55%. Gold was down $30.50 to $1578.90. Oil was down $2.77 to $84.45. ADRs were both down with BHP down 1.87% and RIO down 1.21%. BHP is set to open down 24c today on our market. The A$ is at 101.97c.

Main Points

  • Chinese CPI rose to 2.2% down from 3.0% in May, below the expected 2.3%. Good (low inflation) and bad (low demand).
  • Iluka Resources (ILU) — Production downgrade — ILU now expects to sell between 510,000-720,000 down from 1.04 million tones in 2011.  Share price down 20% first thing. It has started the Resources production reporting season badly and put resources on the back foot this morning. Their comments about weak regional economic growth, lower demand, a pessimistic outlook and a lack of policy response are applicable across the sector rather than just to mineral sands. They say volumes are materially lower than last year.   ILU is down 20.6% to 929c.
  • Leighton Holdings (LEI) has sold their Thiess Waste Management business to Remondis AG & Co KG for $218 million. The value was below below the $300m they had hoped but inline with recent deals in the sector. The sale will generate a net pre-tax capital gain of approximately $115m. LEI is up 0.3% to 1653c.
  • Lend Lease (LLC) has secured $1bn from a Canadian pension fund to invest directly into their Barangaroo development in Sydney. A win for LLC.  LLC is up 0.54% to 751c.
  • Metcash’s (MTS) IGA Supermarkets have intensified efforts to boost sales by launching a 6 week advertising campaign (launched last Saturday) focusing on 5%-25% price cuts. MTS is up 1.57% to 324c.
  • Crown Ltd (CWN) looks to be building up ammunition against their fight with Genting to takeover Echo Entertainment (EGP) by issuing bonds into Asia to refinance $800m of debt and raise another $4-600m. CWN is up 1.54% to 859c.
  • Billabong (BBG) — The share price went up 12.5% late Friday evening after Macquarie bought became a substantial shareholder with talk that they may be buying stock as a prelude to a private equity bid. BBG is down 4.7% to 111.5c.
  • Fairfax Media (FXJ) — There is speculation that Gina Rinehart may change her mind and agree to FXJ’s editorial independence charter in order to gain a board seat. FXJ is down 0.85% to 58c.
  • ANZ job adds fell 1.2% adding to a 2.6% fall in May.

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