The market is down 36. SFE Futures were down 45 this morning.
Dow Jones down 205. The Dow was down 237 at worst. US equities were sold off heavily on Friday on the 25th anniversary of the 1987 share market crash, some disappointing third quarter company earnings results and some profit taking on European markets. US bond yields down. Metals and Oil down.
US existing homes sales fell by 1.7% in September to an annual rate of 4.75 million. This was in line with the forecast.
Worst sectors — Technology (-2.4%), Basic Materials (-2.1%), Industrials (-1.8%) and Telecoms (-1.7%).
European markets mixed — UK FTSE 2.31% 0.35%, German DAX down 0.76%, France down and Greece up 0.90%, Spain down 2.31%, Italy down 0.87%. European markets saw some profit taking after four days of gains. German PPI numbers came in in line with the forecast of +0.3 but was below the previous +0.5.
Metals down — Copper down 2.52%, Nickel down 1.32%, Aluminium down 0.69% and Zinc down 1.86%. A comment by Song Guoqing, who advises the People’s Bank of China, that the government was unlikely to aggressively ramp up stimulus measures. The Spot iron ore price down 20c to $115.30. Oil down $2.05 to $90.05c. Gold down $20.70 to $1724.
- GrainCorp (GNC) — US based Archer Daniels Midland (AMD) has made an indicative, non binding cash takeover offer for GNC after purchasing $268 million worth of shares last week. AMD has offered 1175c per share which represents a 33% premium to the pre-bid price. Both parties remained in discussions last night; the board says they are reviewing the offer. GNC are up 40.23% to 1241c.
- Sundance Resources (SDL) has confirmed China’s Sichuan Hanlong Group had secured a debt facility worth up to US$1.022bn from China Development Bank for their takeover bid. The loan will help finance the $1.7 billion takeover deal. SDL are up 4.88% to 32c.
- Treasury Wine Estates (TWE) — AGM — Has downgraded earnings forecast and expects earnings in the first half of 2013 to fall about 20% due to slow trading in Australia and the Americas in the first quarter. TWE reported EBIT of $91.7m for the first half of fiscal 2012. The company said “our fiscal 2013 performance is impacted by the weather-affected 2011 vintages in Australia and California, which saw fewer wines produced and at a higher cost”. TWE are down 6.91% to 512c.
- Ansell (ANN) — AGM — Says they are on track to lift their earnings in 2012/13 despite weaker sales due to economic weakness in Europe, Middle East and Africa. The company still expects to deliver EBIT growth close to the double digit levels seen last year when they reported a rise in net profit to $130 million. ANN is down 1.11% to 1596c.
- Panoramic Resources (PAN) — September Q Report — Slightly better than expected quarter. Savannah cash costs were higher than expected due to a fall in copper and cobalt credits due to lower price. PAN remains on target for full year production of 18-19kt Ni (PSL estimate — 18.9kt). Cash of $38 million with receivables of $31 million. PAN is down 3.76% to 64c
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