Aug 9, 2013

Morning Market Report

The local market stayed steady despite a number of surprise announcements from major players.

The market is down 27 points. The Dow Jones finished up 23. It was up 86 at best and down 53 at worst. Now 15498. The S&P 500 closed up 7 and is still below 1700 at 1697. Market helped by better than expected Chinese trade numbers yesterday with Exports up 5.1% (Est. +2.0%) and Imports up 10.9% (Est.+1.0%). Trade surplus to fell from $27.1 billion to $17.8 billion. German trade surplus was better than expected. Greek unemployment hit 27.6%. Gold down up $24.60 to $1310. The Japanese market was down another 1.59%yesterday having fallen 4% the day before. The Chinese market was down 0.09%. No waves from the Bank of Japan meeting. Resources well up with BHP up 4.62% and RIO up 3.33% in the US with BHP closing at the equivalent of 91c up on its close in Australia yesterday. RIO was reacting to a combination of the Chinese numbers and its interim results last night which if anything were a bit below expectations. European markets mostly up -- the UK FTSE up 0.28%, the German Dax up 0.70%, the French CAC up 0.64% with Spain up 1.14%, Italy up 1.83%, Greece up 2.46%. Oil price down 97c to $103.40. Spot iron ore was unchanged at $133.10. JP Morgan fell 0.9% -- the company is being investigated over its mortgage-backed securities business. US Economics last night -- Initial Claims: Actual $333,000; consensus $340,00; prior $326,000; (revised $328,000).  Continuing Claims: Actual $301,000; consensus $297,000, prior $295,000. ANNOUNCEMENTS & STORIES
  • China's CPI has remained flat at 2.7%. Economists had forecast a rise to 2.8%.
  • RBA has released a statement on monetary policy -- Growth forecasts were lowered down to 2.25% from 2.5% as expected. 
  • Tabcorp Holdings (TAH) -- Has posted a net profit of $126.6 million below an expected $139 million and down 63% due to the expiry of a key Victorian gaming licence. Revenue was down 30% to $2.1 billion.
  • Henderson Group (HGG) -- Interim results were out last night with pre-tax numbers around 1% ahead of expectations with earnings up 10% on a lower tax charge. 46% rise in 1H profit to a record $172 million.
  • Newcrest (NCM) -- Another (!) Profit downgrade -- Has again written down assets after closer examination of their operations following a sharp slide in the price of gold. It now expects to report total impairment charges of $6.2 billion when it announces its financial year results next week. In June it said write-downs would be between $5-6 billion.
  • News Corp (NNC) -- Boss Kim Williams has resigned. Julian Clarke appointed as new CEO.
  • ANZ has cut its headline rate 25 basis points.
  • SingTel (SGT) -- Is considering an initial public offer of its Optus Satellite unit after drawing lower than expected bids for the business.
  • The RBA will put out their quarterly statement on monetary policy today with expectations that they will downgrade at least their 2013 GDP forecast to December 2 2% to 2.25% which compares to the government forecast of 2.75%.
  • Tom Waterhouse has sold his online betting business to William Hill in the UK for $30 million.
  • Kevin Rudd and Tony Abbott with have an open debate at the Press Club in Canberra on Sunday.
  • Telstra (TLS 513c) -- Closed up 2.4% yesterday after announcing its results. They were a touch (2%) better than expected. Net profit of $3.813 billion (up 12%) against consensus of $3.77 billion. Dividend of 14c as expected.
  • Rio Tinto (RIO 6068c) -- Closed up 3.33% in the US overnight after posting their earning results after market yesterday. 1H underlying earnings came in at $4.2 billion down 18% which was slightly below consensus. Dividend of 83.5c up 15% as expected.

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