The market is down 8, having been up 17 on the open. SFE Futures were up 7 this morning as the Dow Jones finished up 50 on below average volumes overnight. The Dow was up 51 at best and down 24 at worst.
Dow Jones on Friday was up 67 on jobs numbers well above expectations at 236,000 against expectations of 160,000 and the headline unemployment rate down to 7.7% from 7.9%. The numbers were criticised as being more about a reduction in layoffs rather than a rise in hiring.
Chinese industrial production numbers were a bit flat at the weekend. Industrial production was up 10% against forecasts of 10.6%.
European markets mixed — UK FTSE up 0.31%, German DAX down 0.03%, France down 0.1%, Spain down 0.85%, Italy down 0.69%.
Italian GDP contracted by 0.9% (in line) in the December quarter down from -0.2% in the previous quarter, taking the annual decline to 2.8% for 2012. French industrial production numbers disappointed.
US 10-year bond yield was up 1bpt to 2.056%. Best sectors — financials (+0.8%), healthcare (+0.5%), materials (+0.4%). Worst sectors — telecoms (-0.2%) and consumer staples (+0.1%).
Metals mixed — copper up 0.19%, nickel up 0.95%, zinc down 0.9%, lead down 0.73%. Spot iron ore down $2.20 to $141.10. Gold up $3.90 to $1580.80.
Announcements and stories
- Australian Economics — NAB monthly business survey out today.
- Ex dividend today — MIO (2.14c), AHE (8c) plus others.
- CSR Limited (CSR) finished up 2.6% yesterday after announcing it will be sacking 150 employers from the Viridian glass business and it has lowered earnings guidance for the 2013 financial year. CSR is down 2.08% to 211.5c.
- David Jones (DJS) — Deutsche Bank has downgraded the stock to a sell as it has rallied 26% this year and the broker is seeing it as expensive on valuation grounds. DJS have interim results next week. DJS is down 0.99% to 300c.
- Crown (CWN) and Echo Entertainment (EGP) — After a meeting of Packer and the EGP chief executive and chairman yesterday there is speculation again that Crown may bid for EGP after all and in the short term is still pursuing permission to up its stake from 10% to 19.9% if approved by the Liquor and Gaming Authority. CWN is down 1.29% to 1225c & EGP is down 0.14% to 366.5c.
- Media reforms go to cabinet this week, including the potential scrapping of the “Reach Rules” that prevent a takeover of a regional media group by a metropolitan broadcaster.
- Aurizon Holdings (AZJ) and Gina Rinehart’s part-owned Queensland coal company GVK Hancock Coal have signed a $6 billion deal to develop new rail and port facilities for the Galilee Basin. AZJ is down 1.35% to 400.5c.
- CBA — Hit an all-time high yesterday closing at 7013c. CBA is up 0.98% to 7082c.
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