Big global and regional fund managers continued to dump European shares in July, but were more optimistic about Japan and Chinese growth.
The Australian Dollar rallied above USD 1.0800 overnight as equity markets rallied after EU leaders agreed on a bail-out package for Greece
Significant Scheduled Events For 22 July, 2011:(AU) - trade price index, Q2 (EZ) - new industrial orders, May (EZ) - Germany IFO survey, Jul (GOT) - EGM (HST) - EGM (INQ) - EGM (ISK) - Annual General Meeting (MDV) - EGM (RRI) - EGM FN Arena is building the future of financial news reporting at www.
- Woolies delivers solid quarterly sales result- Guidance reiterated, so only minor changes to earnings estimates- Brokers attracted to defensive earnings growth- BA-ML the only negative view following upgrade by MacquarieBy Chris ShawWhile a tough operating environment has forced the likes of David...
The Philadelphia Fed business activity index rose from -7.7 to +3.2 in June. The increase was the first since March. Encouragingly across the sub-indices, new orders, hiring and shipments recorded a healthy improvement.
MORNING REPORT
(7am AEST)The Philadelphia Fed business activity index rose from -7.7 to +3.2 in June. The increase was the first since March. Encouragingly across the sub-indices, new orders, hiring and shipments recorded a healthy improvement. While prices paid by manufacturers was the lowest in nine months. US jobless claims rose by 10,000 to 418,000 last week. The Conference Board leading index rose by 0.3pct in June.
On Wall Street overnight, it was a very strong session as a number of positives combined to send stocks higher. Outside of the jobless claims number, economic data was stronger-than-anticipated and earnings from giants Microsoft and Morgan Stanley topped estimates. The big news, however was an agreement from the EU emergency summit on a final bailout package for Greece worth EUR160 billion; they also empowered their bailout fund to buy debt of stressed nations and offer emergency credit lines.
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Midday-Lunchtime REPORT
(12.15pm AEST)Local stocks are managing to hold onto yesterday's impressive gains despite small losses on Wall Street overnight. Investor sentiment has been boosted by hopes Eurozone members will agree to a second bail-out deal for Greece when they meet in Brussels later tonight. The All Ordinaries Index (XAO) is up 23.8pts or 0.5pct to 4642.
By Greg PeelThe "flash" manufacturing PMI (purchasing managers' index) calculated by HSBC is an early estimate of HSBC's ultimate result published immediately after month-end.
More of the same for the year ahead was the call from major retailer Woolworths yesterday in the wake of the release of the financial year and 4th quarter sales figures.
Besides the expansion of its Chilean and Peruvian copper resources, BHP also achieved production records in four commodities with production of iron ore posting its 11th consecutive record.
Buried yesterday’s BHP Billiton exploration and development report for the 4th quarter and for all of the 2011 financial year was another major story for the world's biggest mining company.
The Australian Dollar is holding its recent move above USD 1.0700, as sentiment remains positive, even if slightly subdued, regarding European and US Debt
problems and plans.
By Greg PeelGold fell from around $1600/oz to $1587/oz on Tuesday night as markets saw rays of hope in both the eurozone debt issue and the US debt ceiling issue.
By Greg PeelThe Dow closed down 15 points or 0.1% while the S&P was flat at 1325 and the Nasdaq lost 0.
MarketU.S. stocks closed lower Wednesday as investors traded cautiously a day after the Dow Jones Industrial Average notched its biggest advance of the year. The Dow finished down 15.51 points, or 0.12%, at 12571.91, after fluctuating between positive and negative territory for much of the session.
MORNING REPORT
(7am AEST)US existing home sales fell by 0.8pct in June to a 4.77 million annual rate. Economists had tipped a result near 4.90m. The median home price was up 0.8 per cent on a year ago. But the stock of unsold homes rose to a 8-month high of 9.5 months. Other data from the Mortgage Bankers Association showed that applications for US home mortgages rose 15.5pct last week to the highest level in four months.
Australian Dollar: The release of the July RBA board minutes on Tuesday signalled an air of caution as far as any near-term rate rises are concerned pushing the Aussie down a third of a US cent in the process.
The Australian share market closed strongly firmer, following its best performance in over a week after a compromise was reached in the US to lift America's debt ceiling. However, local traders said the rally could be short lived because of ongoing debt concerns in Europe.
US existing home sales fell by 0.8pct in June to a 4.77 million annual rate. Economists had tipped a result near 4.90m. The median home price was up 0.8 per cent on a year ago.
AFTERNOON REPORT
(4.30pm AEST)
An estimated $23 billion in value was added to the local share market today. Stocks rallied on hopes Washington would reach an agreement to raise the US debt ceiling before the August second deadline. A debt ceiling is the name given to the maximum borrowing power of a government, and overnight US President Obama expressed optimism that a deal to raise that borrowing power would soon be reached. Strong company earnings results released in the US overnight also b...
By Greg PeelThe Dow rose 202 points or 1.6% while the S&P gained 1.6% to 1326 and the Nasdaq added 2.2%.
MIDDAY REPORT
(12pm AEST)The Australian share market is posting solid gains in early trade, on the back of positive offshore leads and generally firmer commodity prices. At lunchtime in the East, the All Ordinaries Index (XAO) is firmer by 74.5pts or 1.6pct to 4613.9.
The Dow Jones Industrial Average notched its biggest point gain of the year as investors cheered International Business Machines' strong earnings and President Barack Obama's praise for the $3.7 trillion deficit-reduction plan.
By Greg PeelThe spot uranium price rebounded somewhat the week before last once a big sell order cleared the market.
US housing starts soared by 14.6pct in June to a 629,000 annual rate, well above forecasts for a result near 575,000. Building permits rose by 2.5pct after a 8.2pct gain in May.
The Australian share market closed flat as uncertainty about debt issues in the US and European weighed on investors.
The US National Association of Home Builders housing market index rose from +13 to +15 in July, above forecasts. Net capital outflows from the US totalled US$67.5 billion in May, compared with inflows of US$66.6bn in April.
U.S. stocks fell to their lowest close this month Monday as fresh jitters over European sovereign debt and the lack of progress in U.S. debt ceiling negotiations sparked a flight from risky assets.
AFTERNOON REPORT
(4.30pm AEST)The local share market once again finished flat, with the All Ordinaries Index (XAO) virtually unchanged at 4539.4. The S&P/ASX 200 Index (XJO) closed down 3.9pts to 4468.1.
