The market is up 3. SFE Futures were up 9 this morning.
US market down 31. The Dow was down 83 at worst. All markets were down including the US until a rally on the release of the July 31-August 1 Federal Open Market Committee meeting minutes which suggested that the FOMC are open to the idea of further economic stimulus (QE3) “fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.” In other words they will provide additional easing if general economic conditions deteriorate further. The USD vs Euro hit a six week low of 81.50c. The July existing home sales numbers were broadly in line with market expectations.
Greek Prime Minister Antonis Samaras called for more time to make spending cuts and reforms to keep his country afloat (looking for a two year extension on the bailout terms timetable). In a meeting with the head of the eurozone finance ministers, Jean-Claude Juncker he said, “All that we want is a little ‘breathing space’ to revive the economy quickly and raise state income”.
German Chancellor Angela Merkel dismissed requests by Greece to amend its rescue package. “We wait for the report of the troika. Then we will decide,” Merkel said. The report (an audit of Greek finances) will not be ready until next month. Samaras wants to extend the deadline by two years.
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Metals mixed — Cooper down 0.07%, Nickel up 1.763%, Zinc up 1.60%, Aluminium up 0.69% and Lead up 0.21%. Oil down 13c to $96.55. Gold up $13.40 to $1656.30 to its highest levels since May and Silver up 35c to near $29.80 on the back of the FOMC minutes.
- China’s HSBC PMI reading was 47.8 well below July’s PMI of 49.3 indicating further slowdown.
- Fortescue Metals Group (FMG) — FY result above consensus forecast — Net profit up 53% to US$1.56bn which was above a market consensus figure of $1.37bn. FMG is up 1.69% to 422c.
- Origin Energy (ORG) — Profit in line, earnings outlook lowered — Net profit of $980m up from $187m up 424%. ORG is down 3.55% to 1249c.
- Iluka Resources (ILU) — Result above consensus — Net profit of $274.4m up 88% and above an expected $237m. ILU is up 4.2% to 1018c.
- Qantas (QAN) — FY result above consensus forecast – Net loss of $245m compared with a $250m profit last year as a result of surging fuel prices. QAN is up 6.41% to 124.5c.
- Insurance Australia (IAG) – FY result above consensus forecast – Net profit down 17.2% to $207m. IAG is up 4.4% to 401c.
- QR National (QRN) — FY result above consensus, 10% share buyback — Net profit of $440.9m up from $360.9m which was above a consensus forecast of $368m. QRN is up 1.3% to 351c.
- Sims Metal Management (SGM) — FY result above expectations — Underlying profit was $77m below an analyst forecast of $88m. SGM is up 2.5% to 942c.
- Tatts Holdings (TTS) — FY results below expectations — Net profit of $319.1m up 16% below an expected $328m. TTS is down 2.1% to 280c
- Ramsey Health Care (RHC) — FY result slightly below consensus — Net profit of $244.1m up 23%. Core net profit was $252.6m up 14.5% but slightly below an analyst forecast of $253.3m. RHC is down 1.14% to 2424c.
- Sydney Airport (SYD) — Interim result — Net profit of $88.6m, swings back into profit after a last year’s $273 .5 loss. Interim dividend of 11c. SYD is up 0.32% to 317c.
- PanAust (PNA) — Interim result above consensus — Net profit of US$65.7m down 5.4% but above a consensus figure of US$54.7. PNA is 5.04% to 271c.
- Fairfax Media (FXJ) — FY result in line with consensus — Net loss of $2.732bn down from $390m loss last year. FXJ is down 6.19% to 53c.
- IOOF Holdings (IFL) — FY result above expectations — Underlying net profit of $96.4m down 14% from $111.5m and slightly above an expected $90.5m. IFL is down 0.33% to 606c.
- Breville Group (BRG) — FY result above market consensus — Net profit of $46m up 44.9% and in line with market consensus figure of $46m. BRG is up 4.19% to 547c.
- David Jones (DJS) — 4th Q Sales Report, reaffirms profit down 35%-40% — Total sales were $455.8m down 1.3% for the 4th Q. DJS is down 3.5% to 249c.
- Cabcharge (CAB) — FY result slightly above consensus – Net profit $68.7m up 12.3% and slightly above an expected $67.7m. CAB up 2% to 612c.
- Decmil Group (DCG) — Net profit up 66% to $39.1m. Revenue was $555.6m up 41%. Final dividend of 10c. DCG is 5.74% to 313c.
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