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Midday Market Analysis: Early Rally Snuffed Out

The Aussie market is holding on for dear life so far today, with the XJO trading just 8 points above water in the face of some bearish leads provided by international markets on Friday night.

The XJO is up 0.2%, holding near 4055.

The sectors are fairly evenly balanced between winners and losers, with materials and financials amongst the best performers, whilst IT and industrials are the hardest hit.

In company news, Elders is trading flat despite posting a first half net profit of $40.5 million, the result is a turnaround from the $14.6 million loss in the same period last year.

Elsewhere, Orica is down 0.2% after announcing that it has signed off on an agreement to build a 330,000 ton a year ammonium plant on Burrup peninsula in Western Australia.

Around the region, Asian markets are mainly weaker; the Hang Seng and Shanghai Composite are each off 0.2%m, whilst the Nikkei is up 0.2%.

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Morning Market Commentary: More Clouds Ahead

Stocks continued their retreat around the globe on Friday night, with losses piling up on both sides of the Atlantic.

In Europe the FTSE 100 shed 71 points (-1.3%) to settle at 5268, whilst the CAC (-0.1%) and DAX (-0.6%) didn’t fare quite so badly.

Stateside, the Dow Jones slipped 73 points (-0.6%) to settle at 12369, whilst the S&P (-0.7%) and Nasdaq (-1.2%) were even weaker.

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The Dow first edged higher as Facebook opened at $42.05, or 11% above its $38 initial public offering price, then fell when Facebook traded down to its intraday low of $38.

The Aussie dollar remained under pressure and is currently buying US$0.9825, whilst Canada’s dollar dropped the most since November, falling for a third straight week as concern Europe’s debt crisis will worsen overshadowed government data showing inflation and factory sales rose more than forecast.

Oil dropped to a six-month low in New York on concern that Greece will have to exit the euro system, compounding Europe’s debt troubles and curbing fuel demand.

Crude oil for June delivery fell $1.08 to $91.48 a barrel on the NYMEX, the lowest settlement since Oct. 26. Prices retreated 4.8% last week and are down 7.4% this year.

Elsewhere, Gold rose to a one-week high on renewed speculation that the US Fed will announce additional stimulus to boost the economy, increasing demand for the precious metal as an inflation hedge.

In company news, James Hardie has reported a US$140.4 million full year operating profit, a 20% rise on year. The result was slightly ahead of analyst expectations of US$137.7 million.

There is no major local economic data due out for today’s session.

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Morning Market Analysis: Greek Saga Rolls On

Red ink lit up the international leaderboard by the end of last night’s international session, following volatile trade in both Europe and the US.

Confusion over Greece’s political future extended the recent stock slide, with markets bumped around by concerns about the country’s possible exit from the common-currency area.

In London the UK’s FTSE 100 gave up 32 points (-0.6%) to settle at 5405, whilst the CAC (+0.3%) bucked the trend but the DAX (-0.3%) didn’t fare so well.

Stateside, the Dow Jones lost 33 points (-0.3%) to settle at 12599, whilst the S&P 500 (-0.4%) and Nasdaq (-0.7%) were also weaker.

The Aussie dollar slipped lower and is now buying US$0.9920, whilst the euro fell to a fresh four-month low against the greenback after the ECB said it will temporarily stop lending to some Greek banks and as the nation’s leaders prepare for a second election.

Commodities fell as talks to form a Greek government failed, boosting speculation that the country may quit the euro, and data from the U.S. and Japan added to concern an economic slowdown may reduce demand.

Gold, on the brink of a bear market, declined for a fourth straight session as concern that Greece will have to leave the euro boosted the dollar and cut the metal’s appeal as an alternative asset.

Bullion gave up 1.2% to settle at US$1540 an ounce.

Oil fell to the lowest level in more than six months as U.S. supplies grew to the most since 1990 and talks to form a coalition government in Greece collapsed, raising concern that Europe’s debt crisis will worsen.

Crude oil for June delivery fell $1.17, or 1.2%, to $92.81 a barrel on the New York Mercantile Exchange, the lowest settlement since 2 November.

Crude has fallen 15% since closing at the 2012 high of $109.77 a barrel on 24 February.

Today’s session will bring us data in the form of the Melbourne Institute inflation expectations.

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Midday Market Analysis: The Sell Off Continues

The Aussie market is enduring another selloff so far today, with the XJO currently down 30 points (-0.7%) at 4140.

The selloff is widespread, with all but a couple of sectors in negative territory.

Telcos and financials are collectively the weakest performers, whilst materials and utilities are teh strongest.

In company news, Sydney Airports is down 0.7% after reaffirming its distribution guidance of $0.21 per security for CY12.

Elsewhere, Aurora Oil & Gas has dropped 10.3% after undertaking a $120 million underwritten equity raising at $3.55.

Around the region, Asian markets are mixed; the Hang Seng (+0.5%) and Shanghai Composite (+0.4%) are stronger whilst the Nikkei (-0.2%) is weaker.

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Morning Market Analysis: The Rot Continues

After just one session of resilience, the international bulls laid down their arms overnight.

Losses traversed both sides of the pond, with European and US markets suffering at the hands of investors nervous about the political ructions in Greece.

In London the UK’s FTSE 100 shed 110 points (-2%) to settle at 5466, whilst the French CAC (-2.3%) and German DAX (-1.9%) were also weaker.

Stateside, the Dow Jones dropped 125 points (-1%) to settle at 12695, whilst the S&P (-1.1%) and tech-heavy Nasdaq (1.1%) suffered similar falls.

The Aussie dollar fell sharply, slipping below parity with the greenback to presently be trading around 0.9970, whilst the euro dropped to its lowest level in almost four months as a leadership vacuum in Greece prompted European officials to weigh prospects for the currency union’s first departure of a member state.

Oil fell to the lowest level in almost five months amid growing speculation that Greece may leave the euro currency union and as Saudi Arabia’s oil minister said prices should decline further.

Crude for June delivery fell $1.35 to $94.78 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 19. Futures are down 14 percent from this year’s closing high of $109.77 on Feb. 24.

Gold erased its gains for this year as concern that Europe’s debt crisis is deepening strengthened the dollar and cut gold’s appeal as an alternative asset. Other precious metals also declined.

In company news, Mirabela Nickel announced a $120 million capital raising. Resources Capital Fund will be allocated $20 million at $0.40 a share, with the remainder to be offered to current shareholders at $0.30 a share.

Today’s session will bring us the latest monetary policy meeting minutes and new motor vehicle sales, at 11:30am, AEDT.

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Evening Market Analysis: Tough Day At The Office

Aussie shares declined today, following negative leads from US and European markets overnight.

Concerns about Greece’s political instability continued to weigh on sentiment, with matters compounded by Spanish yields climbing well beyond 6%.

At home, the latest RBA minutes from this month’s meeting showed policymakers cut the official cash rate by 50 basis points as a result of a benign inflation outlook and an expectation that banks wouldn’t pass on the whole reduction.

The RBA did upwardly revise its global growth forecast but also noted that Australian inflation and economic growth forecasts were revised down.

The central bank gave no specific hint of further easing, but overall the central bank’s bias still seems tilted towards lower rates.

Most sectors finished in negative territory, with only the defensive sectors such as telcos and utilities attracting serious buying.

The big four banks all lost ground; Westpac dropped 0.8%, whilst rival CBA let go of 0.3%.

The mining majors weighed on the market following a horror night for commodity prices. BHP and Rio Tinto declined 1.7% and 1.1% respectively.

Pacific Brands plummeted 5.7% after announcing that a takeover bid for the company is unlikely in the near term.

Coca-Cola Amatil advanced 1.1% after announcing that it expects its first-half net profit to grow by around 4%-5% for FY12.

The ASX 200 gave up 31 points (-0.7%) to settle at 4266.

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Evening Market Analysis: Positive Close

The Australian stockmarket started the week in positive territory, despite mixed leads from international shares on Friday.

Our market was buoyed by the People’s Bank of China cutting the reserve requirement ratio by 50 basis points to 20%, adding another 400 billion Yuan to the system.

Most sectors finished stronger; materials and energy were the only exceptions.

The big four banks were stronger on the day; CBA and NAB were the best performers of the group, putting on 1.9% and 1% respectively.

Westpac was down 2.9% but the loss was attributed to the stock going ex-dividend.

The mining majors were mixed amid weaker commodity prices; BHP added 0.3%, whilst rival Rio Tinto let go of 0.1%.

Incitec Pivot advanced 0.3% after announcing a 1H FY12 profit of $143.5 million, a 20% fall from the previous corresponding half. The rise was due to a positive outlook for the company.

The ASX 200 put on 12 points (+0.3%) to close at 4297.

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Midday Market Analysis: Flat So Far

The Aussie market is flat so far today, with the XJO holding around 4290.

The sectors are fairly evenly balanced between winners and losers, with consumer discretionary and healthcare stocks the best performers, whilst materials and energy are the weakest links.

In company news, DLX is down 0.3% after announcing a $47.9 million 1H FY12 profit, a 1.6% decline on the previous corresponding half.

Elsewhere, PDN has dropped 1.8% after informing the market that it has been hit by a strike at its Malawi operations.

In economic news, home loans rose 0.3% in March, following a 2.5% decline in February, according to the Australian Bureau of Statistics.

Economists polled had predicted a 2% fall for the month.

Around the region, Asian markets are mainly weaker; the Shanghai Composite is off 0.2% whilst the Nikkei and Hang Seng are slightly softer.

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Morning Market Analysis: What Lies Ahead

It was a mixed night for international markets on Friday night, with modest gains in Europe offset by weakness in America.

In London, the UK’s FTSE 100 advanced 32 points (+0.6%) to settle at 5576, whilst the French CAC (-0.1%) was weaker and the German DAX (1%) put in a strong performance.

Stateside, the Dow Jones shed 34 points (-0.3%) to settle at 12820, whilst the broader S&P (-0.3%) endured a similar decline and the tech-heavy Nasdaq closed flat.

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The Aussie dollar slipped lower and is trading back towards parity with the greenback, whilst the euro fell against the US dollar for a second week, reaching a three-month low, as concern mounted that politicians in Greece won’t be able to form a coalition government and the nation may exit the monetary union.

Gold traders are the least bullish in five weeks after the metal erased almost all of this year’s gains, as political turmoil in Europe and mounting optimism about the US economy drives investors to favour the greenback.

Oil dropped to a 2012 low after China’s industrial growth unexpectedly slowed in April and concern grew that Europe’s debt crisis will worsen, reducing fuel consumption.

Crude for June delivery fell 95 cents to US$96.13 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 19. Prices slipped 2.4% last week and are down 2.7% this year.

In company news, Incitec Pivot announced a 1H FY12 profit of $143.5 million, a 20% fall from the previous corresponding half.

Today’s session will bring us the latest home loans data, at 11:30am, AEST. We will also hear from Deputy RBA Governor Lowe, from 12:25pm, AEST.

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Evening Market Commentary: Poor Week Comes To Close

The Australian stockmarket finished the day underwater, despite a positive lead from international shares overnight.

Most sectors closed in the red; consumer staples and healthcare being the major exceptions.

The banking majors weighed on the market; Westpac was the clear underperformer of the group, dropping 0.8%.

ANZ declined 0.5% after the bank advised it will reduce its variable home loan rate by 37 basis points.

The big miners closed weaker amid mixed commodity prices; BHP declined 0.7% whilst Rio Tinto let go of 1.4%.

Hastings Diversified was a standout (+4.5%) after potential acquirer, APA Group, said it was prepared to offload some assets in order to win regulatory approval for the deal.

The ASX 200 shed 11 points (-0.2%) to close at 4285.

Overall it was a horrid week for the market, with the XJO slumping 2.5%.

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