The market is down 24. SFE Futures were down 34 this morning.
Dow Jones down 110. The Dow was up 9 at best and down 110 at worst closing right on its low. US markets down on the downgrade of global economic growth forecasts by the International Monetary Fund (IMF) and ahead of the earnings season. Financials sectors were down globally. The technology sector saw a handful of companies lower their third quarter guidance. Late in the session the selling continued with reports that the US Attorney in Manhattan filed a civil mortgage fraud lawsuit against Wells Fargo in regards to mortgage fraud during the GFC. The company has since come out and denied any wrongdoing.
Alcoa’s (+0.33%) — After hours results better than expected and the share price popped up 3% in after hours trade only to close down 0.2% after hours. A net loss of US$143 million or 13c per share, compared to a profit of US$172m of 15c per share in the same quarter last year. Revenue was down 9% to US$5.83 billion. Alcoa trimmed their forecast for global aluminium consumption by around 1% on the assumption of a slower Chinese economy.Yum Brands up 4.03% after hours on late results. Chevron had a late profit warning and is down 1.26% in after hours trade.
In Europe — This week’s meeting of EU finance ministers conceded that the EU was unlikely to implement the new banking sector oversight regime by the start of 2013 as was initially planned. This delay will disadvantage Spain, which is looking to fob off its financial sector rescue to the new €500 billion ESM now the new system is in place. The UK has already stated that it sees no worth in joining the ECB-housed banking supervisor. German Chancellor Angela Merkel has made a six hour visit to Greece and told Greece that the “tough path” of painful spending cuts will pay off.
- The Westpac Melbourne Institute Index of consumer sentiment for October is up by 1% to 99.2%. Consumer sentiment improved slightly but consumers remain pessimistic about the national economy.
- There is talk the consortium that bid for Arrium at 75c could walk away after the company’s immediate rejection of the approach. The stock fell 3% yesterday to 78.7c. ARI at 78.5c this morning.
- RIO lowers Chinese growth expectations – RIO’s CEO Tom Albanese held a seminar in London on their Copper and technology divisions and made some comments on China which included lowering their Chinese growth expectations. RIO down 10c to 5561c.
- Alumina (AWC) has received no dividends from their JV partner Alcoa in the US after the company posted a third Q loss of US$143 million (above expectations). AWC’s only earning asset is their 40% stake in Alcoa World Alumina and Chemicals (AWAC) which it co-owns with Alcoa. The loss was caused by a one off charge relating to legal action. AWC is up 1.14% to 88.5c.
- A couple of brokers have downgraded their recommendations on Westpac (WBC) this morning. WBC down 22c to 2566c this morning.
- The CBA have cut coking coal and iron ore forecasts this morning
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