The market is down 12. SFE Futures were down 5 this morning.

Dow Jones up 13. The Dow was up 62 at best and down 8 at worst. Oil down $6.47 to $91.84. US markets opened on a higher note after the Bank of Japan joined the ECB and FOMC in their promises to support markets by buying whatever needs to be bought to support markets and stimulate growth. Japan also left their interest rate unchanged at 0.10%. The Tokyo stock market rose to the highest level in more than four months following the BoJ announcement, up 1.19% to 9232.21 (the highest closing level since May 2).

US economic data was good — existing home sales as well as building permits were better than expected and the PHLX housing index was up +2.5%. A Merrill Lynch monthly survey of investors saw concerns over the European debt crisis fall to the No.2 spot on the European fund managers’ list of risks (first time since April 2011). The number one concern is now the US fiscal cliff.

Best sectors — Consumer Disc, Consumer Staple, Materials. Worst Sector — Energy, Financials. Iron ore spot price down 10c to $109.50. Gold up 30c to $1772.40.  $A is at 104.73

ANNOUNCEMENTS

  • Chinese HSBC PMI Manufacturing figures are due out soon.  
  • Billabong International (BBG) — One of the two potential bidders looking to take over Billabong has pulled out of the due-diligence process crushing hopes of a bidding war. Despite the withdrawal TPG International is said to be still interested. BBG shares are down 7.61% to 133.5c.
  • Kathmandu (KMD) –- FY result above consensus – Net profit fell 11% to $NZ34.9 million down from $39.1 million  in the previous year. The result was above a market consensus estimate of $31 million . Fully franked final dividend 7 NZ cents per share. No guidance given but company said provided there is no further deterioration in economic conditions, they expect an improvement in performance in the year to the end of July 2013. KMD is up 1.82% to 139.5c.
  • Brickworks (BKW) — Net profit of $43.3 million  down 70% from $142.6 million. Plant closures and restructuring resulted in $35.6 million worth of one-off charges. Earnings from building products operations in the second half of the year were in line with the first half. Fully franked dividend of 27c. BKW is down 0.3% to 1001c.
  • Paperlinx (PPX) — The chairman has quit the board along with two other directors. The departure follows that of PaperlinX chief executive Toby Marchant in July. PPX is up 3.51% to 5.9c.
  • BHP Billiton (BHP) has dumped plans to build one of the country’s biggest coal mines amid falling commodity prices and lower growth expectations in China. Studies on the Red Hill underground coking coal mine and the Saraji East underground mine have ceased. Both were expected to produce up to 14 million  tonnes of coal a year. BHP is down 0.91% to 3391c.
  • The Commonwealth Bank business sales indicator found that consumer spending dipped 0.4% in August following a 5.4% fall the previous month. The indicator tracks the value of credit and debit card transactions through CBA point-of-sale terminals. CBA is down 0.18% to 5525c.

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