The market is down 40. The SFE Futures were down 51 this morning.
Dow Jones down 250. The Dow was up 33 at best and down 263 at worst. US markets were all down with the worst single day losses since December as global growth expectations took a hit on the back of a number of releases in the wake of a lack of FOMC stimulus the day before. Main drivers — the weak Chinese PMI number yesterday, a ratings downgrade of US investment banks, the audit of Spanish banks which said they may need 62bn euro, some worse than expected jobless numbers, weak Eurozone and German PMI numbers, a cut in GDP forecasts in Europe, a big fall in metal prices, a near 4% drop in the oil price (Energy stocks thumped), Greece declaring they want to re-negotiate the bailout (without risking EU membership) and a comment from the IMF that “momentum is weakening again” all drove the market down. The Spanish audit only came out late in the European session. Base metals on the LME were all down with Nickel down 4.32%, Copper down 2.57%, Lead down 2.91% and Zinc down 2.40%. Oil hit a two year low and is below $80. Gold was down $48.90 to $1566.90. The A$ at 100.36c.
Main points:
- Consolidated Media Holdings (CMJ) — Kerry Stokes may block the News Corp bid for Consolidated Media Holdings. Perpetual obviously doesn’t think a bid is coming they have sold down to 5.18% from 7.98%. CMJ is down 0.44% to 338.5c.
- Crown Limited (CWN) – Analysts at CBA say if a bidding war breaks out with Genting, Crown will need to increase their stake to 19.9%. To do this the company will need an extra $336m for the extra 9.9% which could mean a possible capital raising. CWN is down 0.47% to 850c.
- Myer (MYR) shares have tumbled to a record low of 169c down 60% since listing in 2009 at 410c. MYR is down 1.48% to 166.5c.
- Billabong (BBG) is expected to re-list on Monday after its $225m 6 for 7 capital raising at 102c yesterday a 44% discount to the 183c share price. The announcement included a profit warning. BBG is in trading halt until Monday. Likely to get smashed.
- Gina Rinehart says Australian investors should be ‘appreciated not derided’. Fairfax is consulting with unions today. FXJ is down 0.42% to 58.75c.
- Qantas Airways (QAN) — Qantas says it could go bust if Etihad Airlines continues to buy more of Virgin Australia (VAH) allowing VAH to undercut QAN on their profitable domestic routes. QAN is down 1.32% to 112.5c & VAH is down 1.92% to 38.25c.
- Treasury Wine Estate (TWE) has launched a multimillion dollar campaign in China to expand and grow their brand through the use of digital media. TWE is up 0.47% to 432c.
- BHP Billiton (BHP) says they will spend $A832.5m to open a new mine at their Illawarra Coal business in NSW. BHP is down 2.56% to 3138c.
- Woodside Petroleum (WPL) has let a $45bn supply agreement for their Browse project expire. WPL is down 1.81% to 3150c.
- To read this week’s article on ‘Gold Bull’ sign up for a free trial at www.marcustoday.com.au.
For a five day FREE TRIAL of the MARCUS TODAY newsletter Click Here. You will receive our renowned and popular Daily email about the stockmarket with all the stuff you need to know ahead of the trading day including:
- Overnight developments, news, comments, rumours, broker recommendations and ideas from Marcus and his Team.
- Our Portfolio recommendations which is actively managed on behalf of subscribers … no “set & forget”. Everything you need to effortlessly
- managed your own long term investment portfolio.
- Daily Technical Trading ideas and data, including daily scans of the ASX 300 for stocks changing trend.
- Stock Database — all the numbers with comments on the top 300 stocks and more.
- Educational section — Marcus’s Educational and Entertaining articles.
Subscribe to MARCUS TODAY. We are sure you will enjoy and profit from what we offer … we have one of the highest re subscription rates in the financial newsletter industry.
Crikey is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while we review, but we’re working as fast as we can to keep the conversation rolling.
The Crikey comment section is members-only content. Please subscribe to leave a comment.
The Crikey comment section is members-only content. Please login to leave a comment.