The market is up 45 points. The Dow Jones finished down 31 on low volume ahead of the holiday tonight. It was up seven at best and down 79 at worst.
The S&P 500 closed down 5 to 1633.
Chinese PMI better than expected — Chinese PMI numbers at the weekend came in higher than expected at 51.0 against forecasts of 50.6 and last month’s 50.3. May help resources this morning.
Syrian delay — Obama passed responsibility for US military action in Syria to a Congress vote next Monday — and in so doing reduces the chances of imminent action. A Congress vote is also likely to limit the scale of action, make it conditional and delay it. On the back of that the oil price and commodity prices fell and the Dow Jones Futures rose — now up 54. Meanwhile the American Secretary of State quoted new evidence of the use of sarin gas. Syria said it is prepared to defend itself. The UK have voted against action. The French are prepared to support it.
The oil price fell 1.06%.
The Gold price fell $16.80.
Chicago PMI in line with expectations.
Consumer Sentiment higher than expected.
The A$ rallied half a cent on the Chinese PMI number. Now 89.37c. It is down from its recent high of $92.34c and a low of 88.48c on 5th August.
European markets mostly down. Most markets down over 1%, Spain the worst down 1.68%.
The Japanese market was down 0.53% on Friday despite a higher than expected CPI number. The Chinese market was up 0.06% yesterday.
The iron ore price was down 60c to $137.70.
Metals down — Copper down 2.57%, Nickel down 2.69%.
RESULTS & STORIES
- American military action in Syria has been put off until Congress votes next Monday (Obama passes on the responsibility). There is new evidence of the use of sarin gas in Syria. The Syrian regime says it is ready to defend itself.
- Commodities fall — On the back of a lower chance of military action the oil price, gold price and metals fell — most metal prices fell over 2.5%.
- The Dow Futures have risen on the prospect of a delay to military action. They are currently up 54.
- The French President Hollande will support any military action. The French Parliament will debate it but they will not vote on it — the President can act without them.
- The Chinese PMI number at the weekend came in higher than expected and is expected to see our market open better than the 18 point fall indicated by the SFE Futures over the weekend.
- The A$ jumped half a cent at the weekend on the Chinese PMI number. Now 89.36c. It hit a low of 88.92c. This is despite the US dollar hitting a four week high.
- We have the HSBC Chinese PMI number today.
- Chinese offical non-manufacturing PMI number tomorrow.
- Huge week for economic releases from Australia.
- First trading day of the month — September is traditionally the worst month of the year for equities (ahead of October).
- Forge Group (FGE) — Stock up 4.36% after announcing a $1.47 billion engineering, procurement and construction contract for the processing facility at the Roy Hill iron ore mine. The project will be performed under a JV agreement with Spanish EPC contractor Duro Felguera.
- After Paladin results on Friday Patersons has a sell with a 40c target price. Now 56c. Debt concerns dominate.
- A lot of Ex dividends today. Main ones include — AGK (33c), AGO (3c), AMC (20.5c), AMP (11.5c), ASX (82.3c), BHP (65.12c), CGF (10.5c), DCG (8c), FMG (10c), SWM (6c).
- Bigger stocks going ex dividend this week — RHC (41.5c), CTX (17c), CRZ (15.6c), FOX (12.5c), IAG (25c), LLC (20c), NHF (5c), OZL (10c), TOL (14.5c), OSH (2c), PPT (80c).
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