The market is down seven points.

The Dow Jones rose eight points to 16,073. The market was range bound most of the day but drifted lower towards the close, trading in a narrow 55 point range.

There was little focus on the lower than expected pending home sales, which fell to a 10 month low, with the market more interested in the nuclear deal struck with Iran. In another “record” for US equities, the NASDAQ briefly traded above 4000 for the first time in 13 years.

The S&P was down two to 1802.

Oil was down 0.70% at US$94.18, reacting to the Iran nuclear deal and expectations of increased oil exports from the region.

Gold rose US$8.00 to US$1252.10 per ounce.

The US$ was stronger against most major currencies. The Aussie dollar continued to weaken after comments last week from the RBA Governor Glenn Stevens, who left open the possibility of currency intervention.

The $A is currently trading at US$0.9162.

VIX volatility index rose 4.32% to 12.79.

US treasury markets were flat — the yield on the 10 year bond fell one basis point to 2.740% in quiet trade. A solid $32 billion two year note auction caused little reaction.

European shares were stronger — led by the German DAX up 0.88% and the French CAC up 0.55%. Greece was the standout, up 2.47% but the Italian market was weaker.

European bonds were mixed, with the yield on the Euro 10 year bond one basis point higher. The UK 10 year bond yield fell three basis points to 2.604%.

Base metal prices were weaker — aluminium fell 0.56%, zinc fell 0.43% and nickel was 0.13% lower.

Iron ore was unchanged at US$136.50 a tonne.


  •  Volumes light in the US during this “holiday week” — it is Thanksgiving on Thursday — US markets are shut.
  • The US$ was up against most currencies sending the A$ to 91.2oc low.
  • The NASDAQ went over 4000 for the first time since 2000 (the tech boom).
  • Markets reacted last night to the Iran nuclear deal, announced over the weekend, which is considered an important first step towards an agreement to ensure Iran’s nuclear program is for peaceful purposes only. There will be an easing in economic sanctions against Iran as a result. The oil price was weaker on expectations of higher exports.
  • In Europe Peugeot Citroen was up 5.1% in France on the back of the Iranian nuclear deal — they have to sell into Iran and have struggled since sanctions were introduced.
  • Other US economic data out ahead of the Thanksgiving holiday on Thursday includes consumer confidence (Tuesday), then leading indicators, University of Michigan sentiment, Chicago PMI, durable goods orders and weekly jobless claims (Wednesday).
  • AGMs today include IOOF (IFL), Challenger (CGF), Woolworths (WOW), Harvey Norman (HVN), St Barbara (SBM), Ridley Corp (RIC), Brickworks (BKW), Resolute Mining (RSG) and Kingsgate Consolidated (KCN).
  • Results today from Aristocrat Leisure (ALL) and Regis Resources (RRL) are presenting at the Paydirt (NewGenGold) 2013 conference in Perth.
  • RBA Deputy Governor Philip Lowe is scheduled to speak at the International Association for Research on Income and Wealth (IARIW) and University of New South Wales (UNSW) conference.
  • Aristocrat Leisure (ALL) — Down 4% this morning on results. The world’s second-biggest maker of slot machines has posted a 17% profit increase on the back of positive results from their US business which offset weakness in Australia and Japan. Profit was up to $107.2 million from $91.7 million but was below an expected $108.9 million profit. EBIT also disappointed coming in at $145.3 million below an expected $152.7 million. The 20% increase in the US division was due to higher game unit sales. Australia and New Zealand profits fell 7.2%, missing expectations due to strong competition.
  • Ansell (ANN) — Has purchased US glove business BarrierSafe Solutions for $US615 million. The takeover will expand their presence in North America and will further enhance their position as the global leader in hand protection solutions. ANN has announced a $338 million fully underwritten institutional placement as well as a non-underwritten share purchase plan capped at $100 million to pay for the acquisition. The remainder will be funded through a $US300m debt facility.

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Peter Fray
Peter Fray
Editor-in-chief of Crikey
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