The market is down 37. The SFE Futures were down 24 this morning.
The Dow Jones closed down 54 overnight. Dow up 78 at best and down 60 at worst. S&P 500 closed lower for a fifth straight day, down 0.4% and under the 1200 support level. The IMF said they would offer a new credit-line program for nations at risk from the euro zone debt crisis. Spain’s short term borrowing costs doubled as they auctioned three month bills at 5.11% up from 2.29% just a month ago. US 3rd quarter GDP was revised down from 2.5% to 2.0% in the 2nd estimate. That is still up from 1.3% in the 2nd quarter, but below the consensus of 2.5%. Metals were mostly up on the LME, the oil price fell 95c to $97.87, Gold prices were up $22.10 at $1700.70. The Aussie dollar fell to 98.33c from 98.56c. It’s a holiday in Japan today.
Main points:
- Stockland Group (SGP) has re-affirmed their FY guidance at their investor day despite soft sales in the first 2 months of the financial year. Patersons recently downgraded their recommendation to Hold from Buy on growing caution on the residential market. SGP up 1.5% to 315c.
- Gryphon Minerals (GRY) has raised $58.5m through issuing new shares at 130c each and intends to use the funds to push forward their Banfora gold project in Burkina Faso. GRY down 11% to 133c.
- Flinders Mines (FMS) is in a trading halt. There was talk overnight that Russian steelmaker OAO Magnitogorsk Iron & Steel Works is considering buying into the company. FMS last traded at 16.5c.
- JP Morgan has cut their price targets for iron-ore producers after cutting forecasts for the commodity over the next 5 years. They cut RIO’s target price to $92 from $105 and BHP’s target price to $51 from $55. BHP down 50c to 3510c and RIO down 87c to 6363c.
- BlueScope Steel (BSL) yesterday announced a $600m capital raising in order to pay down debt. They have undertaken a fully underwritten 4-for-5 accelerated renounceable entitlement offer at 40c — a 34% discount to BSL’s closing share price. Analysts weren’t complimentary this morning with most of them downgrading their target price on the stock. BSL still in a trading halt at 61c.
- IOOF Holdings Limited (IFL) down 9% this morning on its AGM and lower 1st half guidance on the back of falls in global stock markets. H1 profit to fall 16% YonY.
- Murchison Metals (MMX) said they have continued to negotiate the possible sale of their stakes in the a planned $5.94bn rail and port system and a $3.7bn project to expand an iron ore mining operation. MMX unchanged at 27.5c.
- We are waiting on HSBC’s preliminary China PMI report today.
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