The market is down 7. SFE Futures were down 2 this morning.

Dow Jones down 21. The Dow was down 58 at worst and was up 22 at best. US markets started the week on a bad note, with soft leads from Europe and Australasia — all markets were down on light volumes. Utility stocks were the top performers (risk-off).

The German Ifo business climate index came in at 101.4 in September down from 102.3 in August. The Ifo index is down for fifth month in a row and is now at the lowest level since February 2010.

The IMF chief Christine Lagarde rather set the tone for the night after voicing concerns for eurozone growth and the need for decision makers to become decision implementers saying “My main message today is the urgent need to implement the policy actions required to secure the global recovery” and the global economy is “fraught with uncertainty”.

The Chicago Federal Reserve national activity index was down from -0.12 to -0.87 in August. The Dallas Fed manufacturing index was up from -1.6 to -0.9 in September.

Metals down — Copper down 1.22%, nickel down 1.14%, aluminium down 2.37% and zinc was down 0.67%. The Stoxx Europe 600 index was down 0.4% with basic materials (-1.0%), technology (-1.0%) and industrials (-1.0%). BHP and RIO down 0.43% and 2.01% in London.

  • The RBA released its Financial Stability Review, which said Australia’s financial system was strong and resilient to outside influences due to a strengthening in their capital, funding and liquidity positions following the global financial crisis in 2008/2009. They also said developments in Europe were still the main challenge to global markets.
  • Leighton Holdings (LEI) is keen to sell their phone and internet infrastructure assets — Nextgen Networks, Metronode and Infoplex. After a review the company intends to explore the potential sale of each. LEI up 1c to 1649c.
  • Suncorp Group (SUN) has unveiled a $350 million issue of convertible preference shares. The funds will be used for general corporate, funding and capital management purposes. SUN is down 0.65% to 923c.
  • Newcrest Mining (NCM) will issue $US1 billion worth of corporate bonds to repay existing unsecured debt and use as working capital. The offering consists of $US750 million 10-year senior unsecured notes with a 4.20% coupon and $US250 million of 30-year senior unsecured notes with a 5.75% coupon. NCM is down 0.98% to 2786c.
  • Gunns (GNS) has appointed a voluntary administrator after failing to secure funds to keep the company afloat. Gunns had been in talks with lenders and private equity firms seeking support for their proposed capital raising. GNS has been in a trading halt since March at 16c.

Fortescue Metals (FMG) will pay Leighton Holdings (LEI) roughly $1.44 billion to oversee mining at its Firetail iron ore deposit in the Pilbara. Under the contract LEI contractors will manage the mine for five years — LEI up 1c to 1649c.

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