The Market is down 20 points. Dow Jones was down one point to 15,569. Down at the start by as much as 37, and up as much as 29, the market finished flat in a narrow trading range.

The S&P was up two to 1762.

Flat trading conditions due to little direction.

US economic data was mixed. Industrial production beat expectations (0.6% versus 0.3% expected) and capacity utilisation was above estimates (78.3% versus 78.0%) but existing home sales disappointed, falling 5.6% versus -1.3% expected. This was the fourth monthly decline. Tonight we have retail sales, PPI, Case-Shiller Index and consumer confidence. The FOMC meeting starts tonight.

Oil rose 0.83% to US$98.68.

Gold was flat, falling US$0.30 to US$1352.8 per ounce.

The US$ rose slightly against most major currencies. The Aussie dollar came off slightly as a result and is now trading at US$0.9574.

VIX volatility index rose 1.68%to 13.31.

US treasuries were flat — The 10 year yield was 1 basis point higher at 2.525%. A solid bond auction of $32 billion two year notes was well received with a strong bid/cover ratio.

European share were weaker. The UK FTSE was a bit stronger but volumes were down due to a major storm which disrupted transport.

European bonds were generally stronger.

Base metal prices mostly stronger — led by aluminium up 0.71% and zinc up 0.62%. Copper and nickel again the laggards.

STORIES

  • Glenn Stevens has spoken at a Citibank conference about the A$ going lower and the A$ has dropped this morning from 95.76c to 95.44c. He also warns about property price expectations getting too optimistic.
  • ANZ — A good ANZ result sets the tone for the NAB results on Thursday and the WBC results on Monday. Macquarie has results on Friday. It has posted a record $6.5 billion profit (up 11%) with CEO Mike Smith saying “there is more gas in the tank”. Its Asian business and growth in the home loan market have driven profit. Dividend of 91c (better than the 86c expected) … full year dividend of 164c up from 145c. It has a DRP but will buy-back shares to negate the issue. Institutional and international banking division up 15% but up 3% in the second half. Domestic business up 11% with the comment that it is gaining market share. Bad debts fell 18%.
  • The four big banks are expected to earn a profit of $27 billion this year which is a profit of $1227 per man woman and child in Australia. NAB has results on Thursday and should earn $6 billion and WBC $7.1 billion on Monday. The CBA should report $7.8 billion in September.
  • Treasury Wine Estates (TWE) — A class action against the company for non-disclosure over its recent profit warning and $160 million write-down is on the front of the AFR and hardly helps sentiment. It is searching for a new CEO. The stock is down 30% since May.
  • Origin Energy (ORG) — Announced the sale of it Tariki, Ahuro, Waihapa and Ngaere (TAWN) assets in New Zealand.
  • Endeavour Minin g(EVR) — Closes sale of non-core Finkolo JV to Resolute Mining (RSG), receiving $16 million cash. A further $3 million is expected after the transfer of one remaining area.
  • Northern Star Resources (NST) — Has requested a trading halt pending exploration results at its Pilbara tenements. The halt is in place until opening trade on Thursday 31 Oct or earlier if an announcement is made.
  • Perseus Mining (PRU) — Is down 9% on the back of the quarter results.
  • NextDC (NXT) — Has announced that its M1 data centre in Port Melbourne has formally received the Uptime Institute Tier III certification for design. The award is seen as positive for NXT’s customers and partners.
  • SAI Global (SAI) — Is down 8% after the AGM.

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Peter Fray
Peter Fray
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