The market is up 23. Our futures were up 11 this morning with the Dow up 10 on strong volume (ETO expiry) on Friday. Over last week the Dow Jones and S&P 500 both lost 2.1% and the Nasdaq finished down 2.7%.
Finance leaders of the G20 countries said that more efforts are required to boost growth: “Much more is needed to fulfill our commitment to address the ongoing weakness in the global economy.”
Best sectors — consumer staples, telecom, materials. Worst sectors — energy, industrials, technology.
European markets mixed — UK FTSE up 0.69%, German DAX down 0.18%, France up 1.46%, Spain up 1.32%, Italy up 1.81%.
US company earnings — Google up 4.43%, Microsoft up 3.39% and IBM down 8.28%, the stock’s biggest intraday loss in eight years.
Metals mixed — copper down 1.42%, nickel down 2.47%, zinc down 0.19%, lead up 0.36%. Spot iron ore was down 60c to $138.00 and was down $3.00 over the week. Gold up $3.10 to $1395.60 — it was down 7% last week. Oil up 28c to $88.01.
BHP and RIO up 0.22% and 1.80% in ADR form in the US with BHP closing at the equivalent of 3124c down 16c on Friday’s close here.
- OZ Minerals (OZL) — Has downgraded production guidance and says it will produce less copper than expected this year after a setback at its Prominent Hill mine in SA and increasing costs. It now expects copper production in 2013 to be in the range 82,000-88,000 tonnes down from 90,000-95,000 tonnes. Cash costs are now expected to be $US1.65-$US1.80 a pound up from $US1.50-$US1.65 a pound. Financial year guidance for gold output was unchanged at 130,000-150,000 troy ounces. Gold produced in the three months through March was down 1.5%. Copper down 12%. OZL is down 6.03% to 452c.
- Silver Lake Resources (SLR) — Has cut production at its Mount Monger mining operations in WA to help increase margins after recent falls in gold. The company now expects to shift its focus to higher-grade material at the site’s Daisy complex which will result in a 45% drop in ore processing and a 35% reduction in monthly expenditure there. Gold output guidance has been cut to 120,000-125,000 oz, from 140,000-150,000 oz. SLR is down 2.96% to 131c.
- Transfield Services (TSE) — Is set to lose part of a $567 million bus contract due to poor performance. The SA government will transfer part of the contract back to Torrens Transit, which lost the contract in 2011. TSE is up 0.96% to 158c.
- BHP Billiton (BHP) — Says its biggest petroleum expansion project, the Mad Dog project, is in doubt after the original plan for the expansion is now not as attractive as previously modelled due to market conditions and cost inflation. The delayed expansion of Mad Dog is expected to cost $US8bn. BHP is up 0.19% to 3145c.
- Calibre (CGH) — Has won a $140 million contract for the onshore upgrade of Hay Point Coal terminal for the BHP Billiton Mitsubishi Alliance in central QLD. CGH is up 5.06% to 41.5c.
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