The market is down 15 points.

The Dow Jones was up 129 points to 15,747. The market opened higher and rose strongly, pulled back and then moved higher throughout the day, closing near the highs in a 120 point range.

Economic data was supportive, with the Conference Board Leading Index rising 0.7% (exp 0.6%).

The S&P was up eight to 1770.

Oil rose 1.53% to US$94.90 after a drop in inventories.

Gold was up US$9.60 to US$1317.700 per ounce.

The US$ fell against most major currencies and the Aussie dollar was slightly stronger, currently trading at US$0.9528.

VIX volatility index fell 2.71% to 12.91.

US treasuries were stronger — The 10 year yield fell three basis points to 2.646%.

European share were stronger — with the exception of the UK FTSE which fell 0.08%. The French CAC rose 0.79% and the German DAX rose 0.35%.

European bonds were weaker. UK, French and German bonds were little changed but yields on the peripheral market bonds rose.

Base metal prices fell — led by nickel down 1.64% and copper down 0.64%. Aluminium and lead were stronger.

Iron ore rose US$0.30 a tonne to US$137.10 a tonne.


  • Jobs numbers in Australia today. They feed into the interest rate debate but don’t dictate it. We are expecting a rise from 5.6% to 5.7% in unemployment with 5,000 more unemployed. The Participation rate is assumed to stay 64.9%. Generally speaking the post-election improvement in business confidence (if there has been one) will take months to work through to these numbers so it’s a bit early to expect an improvement.
  • Ausdrill (ASL) — Down 25% on a profit warning.
  • Twitter lists on the NYSE tonight. Demand has been very strong driving a significant re-pricing lift just before listing from $17-20 to $23-25 taking the size of the IPO up from US$1.6 billion to US$2 billion. A good listing from Twitter is likely to lift the whole market tonight. They are talking about the market price of $28.
  • Chorus (CNU) — The Minister of Communications and Information Technology has written to Chorus overnight advising that independent advice will be sought on Chorus’ financial position and ability to deliver on its contractual obligations to government.
  • Australian Agricultural Company (AAC) — Half-year result: $31.6 million loss due to a fall in domestic cattle prices.
  • ANZ down 3.3% after going ex Dividend.
  • NAB down 3.32% after going ex Dividend.
  • BOQ down 3.95% after going ex Dividend.
  • Fairfax Media (FXJ) — AGM — Says advertising markets remain weak. Still expects financial year 2014 costs of around $1.6 billion. Financial year 2014 year to date revenue down 6% on year.
  • JB Hi-Fi (JBH) — Up 4.4% after broker BBY released a report with a Buy recommendation, target price 2400c.
  • Mirvac Group (MGR) — Buys property assets for $552 million.
  • Seek (SEK) — To buy remaining 80% of THINK Education Group.
  • Bega Cheese’s (BGA) board is due to meet today to discuss two aspects of their takeover bid for WCB. The two options are whether to go completely unconditional or whether to increase the bid. Some are tipping that BGA may increase the bid, while others say it might not be necessary because of Fonterra’s share raid increasing BGA’s value.

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Peter Fray
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