Dow Jones was up 15. The Dow was up 40 at best and down 16 at worst (narrow range — quiet session) as it posted gains for its fourth consecutive day. There was no economic data released. Wall St reacted more to the news that Italian Prime Minister Mario Monti was stepping down from the job. Tech stocks regained some of the ground they lost last week despite Apple (largest component of the NASDAQ) down another 0.64%. Material stocks also performed well on the back of China’s encouraging iron ore import and inventory numbers yesterday, spot iron ore price rise and metal price rises in the wake of the good Chinese industrial production number at the weekend.

Best sectors — basic materials (+0.8%), technology (+0.4%) and industrials (-0.4%). Worst sectors — Consumer Services (-0.4%), Telecoms (-0.4%) and Financials -0.3%).

European markets mixed — UK FTSE up 0.12%, German DAX up 0.17%, France up 0.18%, Spain down 0.56%, Italy down 2.20% and Greece up 1.42%. The Stoxx Europe 600 index was up 0.1% with Healthcare (+0.7%), Basic Materials (+0.4%), Energy (+0.4%) and Consumer Goods (+0.2%) and Financials (-0.7%).

Metals up — Copper up 1.20%, nickel up 3.20%, aluminium up 1.76%, lead up 3.76%. BHP and RIO up 1.25% and 1.20% in ADR form in the US with BHP closing at the equivalent of 3521c up 26c on last night’s close here.

  • NAB has cut deposit rates by the full 25bp RBA rate cut despite cutting their lending rates by only 20bps. NAB is up 0.45% to 2468c.
  • Transfield Services (TSE) has won several new contracts worth $140 million including work on two major energy projects. The work includes providing maintenance at Woodside’s offshore oil and gas facilities in WA, building wells as part of the Queensland Curtis LNG project and management & construction work with Gippsland Water in Victoria. TSE is up 1.31% to 174.25c.
  • Downer EDI (DOW) — will pay $40 million to Singapore company SP PowerAssets as part of a settlement of an arbitration claim. The company had held a provision of $28 million against the claim. The claim will reduce FY earnings. DOW is up 2.45% to 355.5c.
  • Lynas Corp (LYC) — LYC has been placed in a trading halt after media reports saying the Malaysian government is demanding Lynas export waste or risk having their operating license revoked. LYC released a press statement on December 10 saying the waste residue would be converted into a safe commercial product called Synthetic Aggregate.
  • Lend Lease (LLC) — has been awarded a contract to rebuild the Sydney international convention, exhibition and entertainment precinct. The Destination Sydney consortium would sign a $1 billion public private partnership deal with Infrastructure NSW to build and operate the facilities. LLC is up 1.81% to 900c.
  • NAB’s monthly business survey reports business confidence fell to an index level of -9 from -1 in October. Business conditions remained flat at -5.

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