The market is up 2. Our futures were up 9 this morning and the Dow Jones finished up 36 on below average volumes. The Dow was up 36 at best and down 44 at worst.
The US Federal budget deficit was US$112.9 billion in April — missing a forecast of US$106.5 billion,
German Finance Minister Wolfgang Schauble said the eurozone crisis was not the main risk for the global economy going forward but rather high liquidity. European markets hit a new five-year high on Friday.
Best sectors — consumer discretionary, technology, healthcare. Worst sectors — energy, utilities.
Spanish 10-year bond yield up 2bpts to 4.20%. Italian 10-year bond yield up 1bpts to 3.89%. Greek 10-year bond yield down 1bpts to 9.61%.
European markets mixed — UK FTSE up 0.49%, Germany up 0.19%, France up 0.64%, Spain down 0.33%, Italy up 1.13%.
- DuluxGroup (DLX) — First-halfprofit fell 31% because of costs associated with their takeover of Alesco Corp (ALS). The company reported a profit of $42.9 million, down from $47.9 million but 3% above consensus forecast. This included $10 million in takeover costs. DuluxGroup says conditions were soft during the six-month period, and likely would remain so for the remainder of its fiscal year. It has forecast a financial year profit of $89 million. Fully franked interim dividend of 8c. Financial year 2013 profit guidance remains broadly inline — at $89 million versus a consensus forecast of $86 million. DLX is up 0.67% to 451c.
- Incitec Pivot (IPL) — Reported a 23% fall in first-half profit due to a weak performing fertilizer business. Net profit fell to $110.2 million. Earnings fell by 19% because of the high Aussie dollar and lower global prices. The company’s Dyno Nobel business reported solid earnings up 7% supported by new long-term customer contracts and initial production from its ammonium nitrate plant. No specific earnings guidance was provided but the company warned the loss of a Dyno Nobel customer that generated $8 million in earnings would hurt earnings in the current year. IPL is up 1.41% to 287c.
- Crown (CWN) — The New South Wales Independent Liquor and Gaming Authority has granted approval for Crown and its associated entities and individuals to increase their maximum voting power in Echo from 10% to 23%. CWN is up 1.23% to 1315c.
- Stockland (SGP) — Has issued a profit warning and outlined restructure plans. It expects profit to fall by a quarter but at the same time have outlined plans to increase exposure to Industrial real estate, reduce office real estate holdings and target 10% in cost reductions for 2013 financial year. SGP is up 2.88% in early trade. The company also announced $49 million in impairments on residential projects. SGP is up 1.96% to 389.5c.
- Coffey International (COF) — Mining Services company COF is down almost 40% in early trade after issuing a profit warning amid falling commodity prices and a high Aussie dollar. COF is down 41.3% to 13.5c.
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