The market is down 8. SFE Futures were up 4 this morning.
Dow Jones was closed for Thanksgiving, the US market will re-open for half a session on Friday. European markets up on some mixed PMI data. Base metals were up on the back of the improving trend in the November “Flash” HSBC PMI number that was reported during our market session yesterday — it registered a reading above 50 (expansion) from under 50 (contraction) the month before. European markets up — UK FTSE up 0.68%, German DAX up 0.84%, France up 0.60%, Spain up 0.90%, Italy up 1.03% and Greece up 1.99%. The Stoxx Europe 600 index up 0.6% with all 10 of the benchmark’s sectors up with, Consumer Services (+1.1%), Basic Materials (+1.1%) and Technology (+0.9%). Metal mixed — Copper up 0.29%, Nickel down 0.84%, Aluminium up 0.79%, Lead up 0.79%. A statement by big copper producer Codelco that its output levels over the first nine months of 2012 were down 5% on the same period in 2011 added some momentum to the day’s rally. Spot iron ore unchanged at $120.60. Gold up $1.30 to $1729.50. Oil up down 26c to $87.12.
- David Jones (DJS) — AGM — No real surprises at the AGM. Chairman Bob Savage said “the past year has been a difficult environment for retailers. The continued financial uncertainty in Europe and the US and volatility in global equity markets have all contributed to a general feeling of uncertainty”. The AGM comes just 2 days after David Jones reported sales revenue rose slightly by 0.3% to $415.6m below an expected 1% rise. Mr Savage announced his retirement yesterday after being chairman for 9 years. DJS is up 0.41% to 245c.
- OZ Minerals warning (OZL) — At the 38th annual Essington Lewis Memorial Lecture last night the Oz Minerals MD summed up the cost pressures in the mining industry with this: “Over the past couple of years, the mining industry has been a bit like the wedding industry. If you were to organise a nice dinner for a group of family and friends, you may get it for a reasonable price. Mention it’s a wedding and you should expect to pay much more! As an industry, we now want to pay for the nice dinner – not the wedding or mining premium.”
- Telstra (TLS) — Shares hit a four year high yesterday of 427c. As the company looks at their growth options, media remains one of the three stated growth priorities. The AFR says Telstra could look at Ten Network Holdings (TEN) which would provide certain synergies. The move could also be problematic due to its multiple strategic shareholders. TLS is down 0.23% to 426c.
- Santos (STO) — CEO David Knox spoke at an investor briefing yesterday and forecasts growth of 6% a year in output through the rest of the decade to 90m-90m barrels of oil equivalent by 2020. The company also says their latest exploration discovery at Crown-1 well in the Browse Basin contains about 500bn cubic feet of gas. STO is down 2.26% to 1080c.
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