The market is up 3 having been down 35 before the Chinese GDP numbers. The SFE Futures were down 16 this morning.
Wall Street closed up 3 overnight. Last night was the end of a six day rally that resulted in the S&P 500 putting on 8.7% in six days. The minutes of the last FOMC meeting included a downgrade to GDP forecasts and a comment that the outlook has ‘softened’. Economic data overnight was mixed as was the performance of metals. Gold put on $6.50 to $1207 and the oil price was up 11c to $77.04. The Aussie dollar also went up slightly — now at 88.38c, up from 88.36c yesterday morning.
Main news…
- Chinese economic figures are out. The 2nd Q GDP came in at 10.5% – as expected. There is some significant relief for the market. There were concerns that they would confirm the stories of a slowing in Chinese growth. Inflation came in slightly below expectations – 2.9% compared to the 3.3% economists expected. BHP down 17c to 3823c.
- Nufarm (NUF) lifted their trading halt yesterday and announced a “Trading Update & Revision of Guidance”. They have halved their earnings guidance and now expect a FY net operating profit (excluding significant items) of between $55m-$65m. They have blamed unfavourable weather in key markets. NUF down 27% to 383c.
- Intoll Group (ITO) up 30% to 145c after being bid for. They have received an indicative and conditional $3.47bn takeover offer from Canada Pension Plan Investment Board; just 2 months after Transurban (TCL) rejected their bid. The offer values ITO at 153.5c. Other infrastructure stocks up.
- Sigma Pharmaceuticals (SIP) announce they will not meet their FY11 budget targets. SIP down 1c to 47.5c.
- Rio Tinto (RIO) announced their 2nd Q production numbers yesterday. Numbers were OK but iron ore disappointed with quarterly production falling below expectations. RIO down 94c to 6644c.
- Western Areas (WSA) says nickel production at their Flying Fox and Spotted Quoll mines has doubled in the last quarter. WSA up 12c to 428c.
- Avoca Resources (AVO) hits an all time high – up 9% to 290c – after upgrading their gold resource inventory.
- Leighton Holdings (LEI) have been awarded an additional $700m of work for the UHG Coal Mine in southern Mongolia. LEI up 31c to 3085c.
- Fortescue Metals (FMG) said they shipped 11m tons of ore in the 4th Q, up 36% on last year. FMG down 10c to 428c.
- Stock hitting fresh yearly highs today include: Avoca Resources (AVO) and Intoll Group (ITO)
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