MMR

The market is up 36. The Dow Jones finished up 169 — it was up 192 at best. The Dow and S&P 500 hit record closing highs. The Dow is at 15461 and is 0.5% below the intra-day all-time high of 15542 hit in May. 

The ASX 200 is 5.42% below its high in May.

The Chinese market jumped 3.23% yesterday and is up 6.47% in three days. The rally comes despite the weak import and export numbers this week, which kicked off rumours that the Chinese central bank may relent on its tighter policy attitude and cut bank reserve requirements end concerns about their new tightening bias.

Resources resurrection — The rally in the Chinese market has resurrected the resources sector, with BHP and RIO both up over 6% in the US overnight and BHP up 82c on last night’s close.

A$ falls overnight — The A$ bounced yesterday to a high of 93.07c as the US$ fell on Fed Chairman Ben Bernanke’s speech about policy remaining highly accommodative beyond unemployment dropping to 6.5%. Overnight it has dropped back again to 91.84c.

The gold price is up $32.50 this morning, but with big rises in gold stocks yesterday the sector has probably taken a lot of the rise into account already.

US bonds rallied — The US 10 year bond yield was up 10bp to 2.576%. Weekly jobless numbers were a bit higher (worse) than expected.

Metals up — copper up 0.91%, nickel up 2.39%, zinc up 1.15% aluminium up 1.24%.

Spot iron ore was up $1.30c to $125.20.

ANNOUNCEMENTS & STORIES

  • The results season in the US continues. Some of the major banks report tonight including JP Morgan and Wells Fargo.
  • Australian housing finance numbers at 11.30.
  • Fed governors Bullard and Plosser give their economic outlooks at the Rocky Mountain Economic Summit in Jackson Hole.
  • WorleyParsons (WOR) — Has secured a contract with the energy group Sasol to provide management services to its giant gas-to-liquid and ethane cracker project in Louisiana. The project is valued at valued at $US16 billion to $US21 billion. Under the contract, the company would provide integrated program management team services during the project’s engineering and design phase.
  • AP Eagers (APE) — Has given a market update. It expects to report profit of $42 million for the half-year ended June 30, 3013 compared with $$37.2 million for the pcp — an increase of 12.9%.
  • Miclyn Express Offshore (MIO) — Has announced that the MEO Rover has been awarded a three-year charter with Seascape Surveys — $US29 million contract awards and capital deployment.
  • Phosphagenics (POH) — Has received ethics approval to commence its Tretinoin/TPM Phase 2 study for treatment of acne.
  • Reverse Corp (RFE) — Has successfully completed its $47.7 million equity raising.
  • Retail Food Group (RFG 434c) — Was cut to neutral at BBY and was also cut to neutral by UBS.
  • IOOF Holdings (IFL 802c) – Deutsche Bank has a buy with a target price of 855c reduced from 915c. It has trimmed its forecasts and valuation because of possible weak equity market performance, which is the company’s biggest driver.
  • iiNET (IIN 637c) — JP Morgan has downgraded to underweight from neutral with a target price of 441c. The reduction was on the back of re-basing of margins in an NBN environment and a quicker roll-out under a Coalition government.
  • Brambles (BXB 937c) — Morningstar has downgraded to a reduce from Hold. Their target price is 946c.
  • Rio Tinto (RIO) — UBS has a buy with a target price of 8300c.
  • Resmed (RMD) — Citigroup has a buy with a target price of 579c..

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Peter Fray
Peter Fray
Editor-in-chief of Crikey
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