The market is up 30 points. Dow Jones was up 128. It was up 129 at best closing on its high.

S&P 500 was up 12 to 1684.

Safe haven asset classes fell on the diffusion of the Syrian threat. Gold fell $22. Oil fell 2%. Bondsfell. The US 10 year bond yield rose five basis points to 2.969%.

Mining stocks up again on yesterday’s Chinese data that included strong industrial production and retail sales numbers and followed up on better than expected trade figures and PMI numbers in the last week.

The tapering threat has also backed off with expectations that after the weak US jobs numbers on Friday next week’s FOMC Meeting will do little more than suggest a token reduction in quantitative easing.

The A$ has jumped over 93c to 93.12c as the US$ falls, the NAB business survey suggests business confidence was picking up even before the election and as the Chinese numbers improve.  Technical resistance on the A$ is at 93c.

Iron ore price up 40c to $135.20.

BHP was up 1.37% in the US overnight. The stock closed in the US up 20c on the close here yesterday. RIO was up 3.0% in the US.

European markets up. Some markets including Germany, France and Spain up close to 2%.

Metals mostly down again.

In Europe tonight — French industrial production missed forecasts, UK employment and average earnings numbers.

US Economics overnight — JOLTS — Job Openings: Actual 3.689M, prior 3.936M (revised 3.869M).


  • Obama has spoken and the oil price has fallen. He has asked Congress to postpone the vote on military action whilst they pursue a diplomatic solution. There was a veiled resolution to act if necessary …
  • Consumer confidence survey: The election effect on sentiment was clear. It shows that the election has brought about a much needed boost in confidence. Sentiment up 4.7% in September to 110.6. This means optimists now comfortably outnumber pessimists.
  • Syrian military action looks likely to be avoided, the Syrians have had their warning and will presumably behave — the UN will delay the issue, Obama seems happy for the “out” — it was only ever going to be a temporary market issue.
  • Chinese numbers continue to impress. Good industrial production and retail sales numbers yesterday back up improving trade numbers and PMI numbers. Resources continue to rally.
  • The election was an emphatic win for the self declared “Pro-Business” party. Hearing Abbott say “We are open for business” is exactly the sort of line that business wanted to hear and you never know, confidence may just rise because of it. The NAB Business Survey yesterday shows confidence was already ticking up pre-election.
  • Australian interest rates could come down further by the end of the year. Income hungry retirees have no choice but buy income stocks as proxy term deposits. More oomph for equities.
  • The Australian housing market is more active.
  • Westpac Consumer confidence numbers out today.
  • Apple lost 2.3% after they announced their new phone the iPhone 5s — better camera and processor.
  • APRA has warned the big four banks not to increase their exposure to risky loans as they compete for mortgage customers.
  • McMillan Shakespeare (MMS 1234c) — Goldman Sachs has put out a Neutral recommendation. They say business is back to normal. As widely reported the Coalition’s win means the proposed FBT changes will be null and void.

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Peter Fray
Peter Fray
Editor-in-chief of Crikey
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