The market is up 10. The SFE Futures were down 10 this morning.
Dow Jones down 32. Third fall in a row. Dow up 66 at best and down 58 at worst. The market opened well on a strong ADP Employment number ahead of the jobs numbers on Friday but the Dow Jones dropped 60 points in minutes on the release of the FOMC Statement that was little changed from the previous meeting and contained no new stimulus.
The attention now moves to tonight’s ECB and Bank of England meetings with the focus firmly on the ECB’s Mario Draghi to back up on his early unofficial statements about the ECB preserving the euro with official statements and actions. There is a chance of an ECB rate cut.
- The Chinese PMI number yesterday was a bit below expectations and not supportive of the markets overnight. Bonds fell.
- The FOMC left rates unchanged at 0-0.25% and said that “economic conditions including low rates of resource utilization and a subdued outlook for inflation over the medium run are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014” (some had expected an extension to 2015) and that they will “closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability”.
- Computer glitch — Many US stocks swung by 10%+ without any company-specific stories in initial Wednesday trading, with some blaming the phenomenon on distortions caused by computer-generated trading.
- Metals all down including Copper down 1.76%, Nickel down 1.99%, Zinc down 1.13% and Aluminium down 1.40%.
- Aquarius Platinum (AQP) — Three people have died and at least 20 others are injured in a violent 200 person invasion of their Kroondal project in South Africa. The site has been shut down until the area is restored to a safe status. AQA is down 14.9% to 48.5c.
- Sundance Resources (SDL) has been placed in a trading halt -Hanlong Mining’s takeover bid has been lowered to 50s per share down form 57c. Apparently the price has been lowered as a condition from the Chinese regulator.
- News Corp (NWS) have announced that the ACCC will not oppose their $1.97bn takeover of Consolidated Media Holding (CMJ). NWS is up 0.3% to 1104c.
- Trade numbers — Australia moved into a trade surplus for the month of June. Forecasts were for a $400m deficit but the figures show a $9m surplus, a $322m turnaround from the previous month.
- Retail Sales — Australian retail spending rose +1.0% in the month of June. Forecasts were for a +0.6% rise.
- Talk in the AFR that Beach Energy (BPT 108c) could be a takeover play.
- BHP (BHP 3170c) chief executive Marius Kloppers has said that he does not feel pressure on himself nor on his company’s performance despite recent indications that investors are losing confidence in the CEO’s leadership. BHP is up 0.9% to 3296c.
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