The market is down 7. The SFE Futures were up 5 this morning.

The Dow Jones index fell 74 on Friday. European leaders meet in Brussels tonight and are expected to finalise a pact on balanced budgets and reforms and discuss the Greek bailout announced in October that is waiting on a Greek deal with bondholders. The US advance GDP number on Friday (which will be subject to revision) was the 10th Q of growth and the best since 2010 but it didn’t impress coming in at +2.8% against forecasts of +3.2% and the prior number of 1.8%.

Fitch downgraded five euro zone economies including Italy and Spain. Brokers downgrading banks in France — BNP Paribas down 3.25%. Gold up to a seven week high — up $5.50 to $1732.20. Metals mostly down on the GDP number. French President Sarkozy says the euro-region’s financial crisis is stabilising thanks to measures taken by European leaders. A$ still going up as the US$ falls on last week’s FOMC decision to leave rates close to zero until 2015 — the euro going up as well on hopes of a Greek deal. Aussie dollar is now at 106.43c.

Main points…

  • GWA Ltd (GWA) — Trading Update — Revenue and EBIT are in line with previous guidance. EBIT is in the $44m-$46m range and revenue slightly below the same period last year impacted by lower sales of environmental water heating products in the Dux business. GWA up 1c to 240c. Results on 14th February.
  • Coalspur Mines (CPL) announced their Vista coal project in Canada will cost an estimated $US1.23bn with construction due to begin in early 2013 once regulatory approvals are in place. CPL is one of Patersons top picks in the coal sector. CPL up 7c to 192c.
  • Front page of the AFR says Kerry Stokes has sold his 2% shareholding in Ten Network (TEN) less than two months after his stake became public. Seven (WAN) Pty Ltd paid 92.5c for their shares (around $20m) and is effectively breaking even on the transaction with TEN closing at 89c on Friday. TEN down 0.5c to 88.5c.
  • Woolworths (WOW) will release the finding on their Dick Smith strategic review when they announce their profit numbers in five weeks. The general consensus is that they will close between 25% and 50% of their 380 stores in Australia and New Zealand. WOW down 14c to 2463c.
  • Cockatoo Coal (COK) has announced maiden reserve estimates totaling a combined 260.2m metric tons for 2 of their QLD coal ventures with Mitsui & Co. COK up 0.5c to 39c.
  • Bandanna Energy (BND) has had a recent lift as a line of 3m shares (an overhang) was placed at 60c. Now 66.5c having hit 71c after the placement. BND unchanged at 66.5c.
  • One broker has downgraded Computershare (CPU) this morning and have cut their target price to 850c from 900c. CPU down 9c to 766c. It is all part of the rise in the A$ with the bulk of CPU profit sourced overseas and a continued drop in the number of M&A and ECM deals.

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