The market is up 37. The SFE Futures were up 37 this morning.

Dow Jones up 211 — Dow up 255 at best — The S&P 500 had its first rise after four consecutive falls. All market up on comments from the ECB President at the Global Investment Conference in London that the ECB were “ready to do whatever it takes to preserve the euro” a comment that was interpreted as a warning that further intervention in European bond markets by the ECB was in the offing. Although his comments have been well received by markets they are unlikely to represent the common view in the ECB and are “certain to seriously upset German heavyweights in both the ECB and the Merkel government” according to the Patersons economist. So this may not be an ECB statement so much as the market clutching at straws.

The Spanish 10-year bond yield fell 45bp to 6.928%. The euro booked its largest intraday gain versus the US$ in nearly a month. The Draghi comments overwhelmed some poor June Pending home sales numbers and durable goods orders which. The Durable goods orders were above consensus at the headline were flattered by aircraft and defense orders which are lumpy and volatile. Weekly jobless numbers were better than expected at 353,000 versus consensus of 381,000. European markets flew – London up 1.36%, France up 4.07%, Germany up 2.75%, Spain up 6.06% and Italy up 5.62%. The Stoxx Europe 600 index jumped by 2.5% led by Financials (+3.7%) and Utilities (+3.5%) sectors.

The Greek market fell 0.83% overnight as they struggle to cobble together an agreement on an €11.5bn package of budget cuts. The European Commission President Jose Barroso is urging Greece to make good on promises. They have to reduce their budget deficit to 7.3% of GDP in 2012, from 9.1% in 2011 although with the country’s economy contracting sharply over 2012 to date the general consensus is that it is unachievable.

  • Billabong (BBG) have opened their books to TPG for due diligence on the proposed 145c per share take over offer.  BBG is up 0.74% to 136c.
  • Karoon Gas (KAR) responded to a price query from the ASX. KAR is up 5.78% to 366c.
  • Drillsearch’s (DLS) capital raising has been increased to $50m from $40m due to high demand. DLS is down 3.9% to 110c.
  • Aurora Oil and Gas (AUT) have raised their unsecured note issue to $165m from $100m.  AUT is down 0.6% to 340c.
  • Sandfire Resources (SFR) have released their June quarter production report. In line with expectations. Exploration on track and within budget.  SFR is up 1.94% to 680c.
  • OceanaGold (OGC) have released their June quarter production report. OGC is up 5.56% to 200c.
  • A plethora of quarterly production numbers today as they pile in before the deadline.
  • US GDP numbers tonight — The Advance estimate for the 2Q — Expecting +1.4% to +1.8% versus +1.9%.
  • Chinese PMI numbers and an FOMC meeting next Wednesday.

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