• The Market is down 6 points. The Dow Jones finished down 46 in the lowest volume this year — it was down 74 at worst. Now 15612.
  • The S&P 500 closed down 3 but stayed above 1700 at 1707.
  • Fed Governor Fisher didn’t help with comments that asset purchases would be slowed later in the year if the economy improves “along the lines envisioned by the Committee”. He also talked about quantitative easing “laying the groundwork for mis-allocation of resources” and fueling inflation.
  • Uneventful session. Described as a bit of profit taking after six weeks of gains.
  • The 30 year bond yield crept up another 4 basis points to 3.73%
  • The ISM services index came in higher than expected at 56 versus consensus at 53.2.
  • The Chinese non-manufacturing PMI number yesterday was ahead of expectations at 54.1 up from 53.9.
  • The UK PMI number was the best since 2006 up from 56.9 to 60.2. Their market still fell.
  • The A$ is holding over 89c now 89.29c.
  • Metal prices mostly down … Zinc up 0.16%.
  • The Japanese market lost 1.44% having jumped 3.29% on Friday. The Chinese market was up 1.04%.
  • Resources up small with BHP up 0.09% and RIO up 0.84% in the US with BHP closing at the equivalent of 17c down on its close in Australia yesterday.
  • HSBC down 4.4% on results.
  • European markets mostly down — the UK FTSE down 0.43%, the German Dax down 0.10%, the French CAC up 0.011% with Spain down 0.15%, Italy down 0.13%, Greece down 0.12%.
  • Oil price down 38c to $106.56.
  • Gold price down $8 to $1302.60.
  • Spot iron ore was up 10c to $130.20.

ANNOUNCEMENTS & STORIES

  • RBA Meeting today — A 25 basis point cut is now priced in (94% chance). There is also talk of a 50 basis point cut. If this happens, the dollar will fall.
  • Iress (IRE) — Have made a large GBP210 million (A$330 million) acquisition of Avelo FS Holdings in the UK which provides equity and currency market data. It is having a rights issue — 206 million shares at 715c – a 14% discount to the current price of 827c. In a trading halt. Acquisition is in its space. No comment yet on pricing impact. I suppose if you think the A$ is going down now is the time to make international acquisitions.
  • iiNet (IIN) fell 2c to 611c on the back of its $60 million acquisition of Adams Internet yesterday.
  • Fortescue Metals Group (FMG) — Announced that is has achieved their target of awarding $1 billion in contracts to Aboriginal businesses by the end of 2013.
  • Credit Corp (CCP) ––NPAT up 12% to $29.9 million. 28% increase in dividends to 37c. Revenue increase by 11% to $138.3 million.
  • NRW Holdings (NWH) — Has announced that work on the $67 million Roy Hill Minesite bulk earthworks contract are advanced and a full work program is to proceed.
  • Cochlear (COH) — FY Profit results were as expected but with better implant sales numbers.
  • Downer EDI (DOW) — Has had good results. $215 million up 10.4% after stripping out last year’s $73 million write-down. Better than the forecast $210 million.
  • Leighton Holdings (LEI) — Has agreed on a price with the Government on the Gateway WA Project priced at $899 million.

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Peter Fray
Peter Fray
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