The market is up 63. ASX 200 Futures were up 20 this morning after the Dow Jones finished up 150 overnight. The Dow was up 179 at best and looks to have found technicalsupport around the 14600 level.

The final estimate for the US March quarter GDP was down to +1.8% versus the previous estimate of +2.4%. The number was below expectations and soothed investor concerns that the Federal Reserve would soon begin to ease stimulus measures.

US 10-year bond yield down 7bpts to 2.54%. Best sectors — consumer discretionary, industrials, utilities, financials, health care. Worst sectors — materials, energy. Europeanmarkets up — UK FTSE up 1.04%, Germany up 1.66%, France up 2.09%, Spain up 2.83%, Italy up 2.03%.

France’s YonY GDP growth rate was -0.4%, which was in line but below the previous reading of -0.3%. The ECB President Draghi provided assurances that an exit from its exceptional monetary policy measures “remains distant”.

Metals down — copper down 0.87%, nickel down 2.38%, aluminium down 0.75%, lead down 1.19%. Spot iron ore down 20c to $113.80. Gold was down $49.10 to $1226.00. Oil was up 15c to 95.47c.

  • China: Industrial profits up 12.3% in May up from 11.4 % in April.
  • Patersons have initiated research coverage on CRZ, SEK and WTF today and with a BUY, a HOLD and a SELL. 
  • Politics: Generally speaking you would have to say its a bit irrelevant to the market, the market is already discounting a Coalition election victory and that probably doesn’t change although the date might.
  • Retailers are having a rally perhaps on hopes that the Carbon tax is even less likely to survive relieving pressure on consumers. Myer up 7.1%, DJS up 4.0%, JBH up 4.7%, HVN up 5.2%.
  • Gold stocks are up despite a $49 drop in the gold price overnight. It seems enough is enough and the traders are in. Gold up $13 in Asian trade this morning. NCM up 7.1%. RRL up 4.3%. PRU up 10.0%.
  • Safe income stocks rallying including banks and Telstra. Telstra up 9c to 474c. Banks up over 1%.
  • Toll Holdings (TOL) — Has booked a $200 million write-down, despite this the company has reaffirmed guidance of between $420 million-$430 million. TOL is up 1.9%.
  • Tax loss selling is coming to an end. Some small stocks bouncing

Peter Fray

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