The market is up 12. SFE Futures were up 20 this morning.
Dow Jones up 54. The Dow was up 113 at best and down six at worst. US markets were all up again following the Fed’s new QE3 (QE infinity) stimulus program announced Thursday but peaked early and fell most of the day on some mixed economic data. The Dow Jones and S&P 500 index are now at their highest levels since December 2007. Iron ore price up 5% to almost $102.
Flat economic numbers — The August industrial production capacity/utilisation data disappointed, and while the headline August retail sales number was around expectations, it was helped out by spending on more expensive petrol prices. The August CPI stats were in line with consensus forecasts, but highlighted how tough it is for companies to pass on increased costs to end-consumers in the face of fierce competition and still high jobless levels. Consumer sentiment rose from 74.3 to 79.2, well above expectations.
European markets up — UK FTSE up 1.64%, German DAX up 1.39%, France up 2.27%, Spain up 2.75%, Italy up 2.34% and Greece up 0.17%. European markets are now at 14-month highs. Mining stocks were the best performers in the UK with BHP up around 6% and RIO up 6.6% in London. Barclays, Deutsche Bank and UBS were all up around 3.5%.
Metals well up on the fall in the $US — Copper up 3.76%, Nickel up 6.20%, Aluminium up 4.70% and Zinc was up 4.05%.
- New car sales were better than expected in August. According to the ABS, 93,379 new cars were sold compared to the seasonally adjusted 90,133 in July.
- Macmahon Holdings (MAH) — Have been placed in trading halt (55c) ahead of an announcement from the company regarding their earnings guidance. Thought to be a profit warning.
- Leighton Holdings (LEI) — Has announced the first large-scale production of drinking water at the Victorian desalination plant. LEI is up 4.93% to 1650c.
- Myer says they have finally caught up with its online retail competitors after investing heavily to increase its share of this $12 billion market. MYR is down 0.95% to 183c.
- Zircon — An Asian Metal’s website says zircon prices are set to tumble in the December quarter. ILU is up 7.28% to 1105c as JP Morgan upgrades the stock to OVERWEIGHT.
- Fortescue Metals (FMG) will come out of its trading halt tomorrow and announce details on whether it was able to win financial relief on its debt covenants from lenders. Only two thirds of its bank lenders need to approve a relaxation in debt covenant terms for it to go through. There is speculation that FMG could look to sell its stake in the Kings iron ore project or a stake in its railway. There are countless rumours circulating. FMG is in trading halt.
- Northern Iron (NFE) has suspended exploration and deferred capital expenditure programs in an effort to cut costs amid lower iron ore prices. NFE is down 8.67% to 79c.
- Directors selling stock in SHL, ORG, CRZ and MMS. Buying stock in AMC, FXJ and ACR.
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