The market is up 27. The SFE Futures were up 30 this morning.
The Dow Jones closed up 173 overnight — its best gain in two weeks. The new General Motors IPO had encouraging support — listed at $33, closed at $34.24. European markets got a boost as Ireland softened its line on accepting an EU bailout.
The alternative is what Europe fears, going it alone, abandoning the Euro and denting the EU structure.
Weekly unemployment claims were lower than expected and the Philadelphia Fed recorded a jump in manufacturing activity. Gold up $16.10 and Oil up $1.41. The A$ up from 97.84c to 99.05c.
Today’s main points.
- QR National shares are due to begin trading on Monday at noon. First settlement day is Friday 10th Dec. Talk that the IPO was multiple times covered at 250c in the institutional bookbuild.
- Telstra held its AGM and has reiterated fully year guidance, said they expect to pay a 28c dividend in 2011 and 2012, talked about the NBN deal being finalised and possible capital management initiatives when that lands. TLS up 3.13%.
- Coal stocks to be in focus today after Walter Energy made a $US3.2bn bid overnight for Western Coal in the US.
- The AFR’s Street Talk column says it is unlikely that Foster’s Group (FGL) beer business will be bid for before the demerger of its beer and wine divisions. FGL up 0.35%.
- Talk of Rio Tinto looking to raise its stake in Energy Resources Australia (ERA) thanks to a rising uranium price. ERA up 0.6%, RIO up 1.04%.
- Spotless Group (SPT) has successfully secured $US1.6m in debt funding. SPT up 0.5%.
- The OECD warns that risks to the world economy are “substantial” and financial markets are “fragile”. It now expects advanced economies to expand by just 2.3% in 2011, down from 2.8%. The US economy is now expected to slow to 2.2% in 2011 from 2.7% and China’s economy should grow 10.5% this year, compared to 9.7% in 2011.
- Mount Gibson (MGX) has been belted after a boardroom coup by APAC Resources (hold 25.85% of the company) and Fushan International Energy (14.24%). They have effectively taken control of the board. Patersons have downgraded to a SELL recommendation with a 177c target price. Now 196c down 2.5%. Was recently 242c.
- Karoon Gas has abandoned the IPO of its South American assets — fell nearly 10% on the open but has since recovered to be down 1.3%. It will wait for conditions to improve before reassessing.
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