The market is up 30. The SFE Futures were up 21 this morning.
Dow Jones up 51 — Dow was up 98 at best. Low volume again. Bonds fell for the third day as equities rose. Generally good US results — Chesapeake up 9.4% on results. Consumer credit numbers a bit below best expectations. Market lifted by Fed Bank of Boston President Eric Rosengren who commented in a television interview that the Fed should pursue an “open-ended” easing program of “substantial magnitude” to boost GDP growth and the jobs market.
European markets up again — UK FTSE up 0.56%, Germany up 0.71%, France up 1.52%, Spain up 2.23%, Greece up 1.76% and Italy up 1.54%. The Italian index up in the wake of a smaller than expected 0.7% quarterly contraction in the Italian economy over the June quarter (the June-on-June drop was 2.5%). The Italian economy has now gone backwards over each of the past four quarters.
- The Stoxx Europe 600 index increased by 0.8% in Tuesday trading, headed by solid gains in its Energy (+2.2%), Utilities (+1.5%) and Basic Materials (+1.4%) sectors. Spanish bond yield up again — by 12 basis points on the day to around 6.86%. After European markets closed, Standard & Poor’s downwardly revised its Greece Outlook to “negative” from “stable”.
- Metals up with Copper up 1.88%, Nickel up 0.91%, Aluminium up 2.63% and Zinc up 1.82%. Some buyers taking the punt that China, the globe’s biggest consumer of base metals, would soon announce more stimulus measures to perk up its economy.
- Oil up $1.38 to $93.58. The situation in Syria continued to deteriorate with news coming through that the country’s Prime Minister Riad Hijab had defected to the rebels. Also helping the mix was news that the US Energy Department had raised its crude oil projection for 2012 to US$93.90 a barrel (from US$92.83) in its latest Short-Term Energy Outlook report premised on (1) expectations of economic stimulus and (2) supply disruption in the Middle East.
- Computershare (CPU) have posted a net profit of $156.49m for the full year to June, this is a -40.7% decline on the previous 12 months. CPU will pay a final dividend of 14c per share fully franked taking the annual dividend to 28c. CPU said that they do not expect to see any material improvements for the 12 months ahead due to the current difficult operating environment. CPU is up 5.5% to 796c.
- Stockland (SGP) have posted a net profit of $487m for the 21 months to June, this is -35.5% fall on the previous 12 months. Annual revenue and other income for the year was down -20.8%. SGP will pay a final distribution of 12c per share taking the total to 24c. MD Matthew Quinn said that the result was a “reasonable one in a very challenging operating environment”. SGP is down 3.81% to 328c.
- UBS has downgraded Telstra (TLS 399c) to a neutral recommendation from a buy recommendation this morning. The broker is seeing the current share price as at fair value but expects the 6.9% ff dividend to increase over FY13 – they have a 400c target price. Results tomorrow. TLS is down 2.46% to 397c.
- Home loan approvals rose +1.3% in June to 46,859 from a revised 46.280 in May. Consensus was looking for a +2% rise.
- Google, Apple and Microsoft have been buying Australian government bonds over the last six months according to The Australian Financial Review.
- RIO results expected later today.
For a five day FREE TRIAL of the MARCUS TODAY newsletter Click Here. You will receive our renowned and popular Daily email about the stockmarket with all the stuff you need to know ahead of the trading day including:
Get Crikey FREE to your inbox every weekday morning with the Crikey Worm.
- Overnight developments, news, comments, rumours, broker recommendations and ideas from Marcus and his Team.
- Our Portfolio recommendations which is actively managed on behalf of subscribers … no “set & forget”. Everything you need to effortlessly
- managed your own long term investment portfolio.
- Daily Technical Trading ideas and data, including daily scans of the ASX 300 for stocks changing trend.
- Stock Database — all the numbers with comments on the top 300 stocks and more.
- Educational section — Marcus’s Educational and Entertaining articles.
Subscribe to MARCUS TODAY. We are sure you will enjoy and profit from what we offer … we have one of the highest re subscription rates in the financial newsletter industry.