The market is down 15 points.
The Dow Jones closed down 11 at 16,086. The market set another intra-day record before dropping towards the close and finishing near its lows in a 100 point range. Volumes were light in a shortened trading session due to Thanksgiving holidays. There was no economic data released.
The S&P was down one point to 1,806.
Oil was up 0.46% at US$92.72 on higher than expected US inventories.
Gold rose US$12.80to US$1250.60 per ounce.
The US$ was weaker against most major currencies. The Aussie dollar was higher and is currently trading at US$0.9129.
VIX Volatility index rose 5.55% to 13.7.
US treasury markets were weaker — the yield on the 10 year bond was one basis point higher in light trading in a shorter session.
European shares were mixed — the German DAX rose 0.19% but most other markets were weaker including the French CAC down 0.17% and the UK FTSE down 0.06%.
European bonds were flat, with the yield on the Euro 10 year bond unchanged at 1.691%. T
Base metal prices were stronger — zinc was up 1.18%, nickel was up 0.88%, and copper rose 0.57%
Iron ore rose was flat at US$136.40 a tonne.
STORIES
- The AIG Performance of Manufacturing Index for November fell by 5.4 points to 47.7 last month, a return to pre-election levels.
- TD Inflation Gauge was up 0.2% on month. In the year to November, inflation is up 2.4% above previous 2.1% annual readings but remains well within the RBA’s 2%-3% target range.
- GrainCorp (GNC) — Chief Executive Officer and Alison Watkins has announced her resignation, departing at the end of January 2014. Ms Watkins was a supporter of the ADM offer and said she had intended to leave once control had passed over to ADM. Chairman Don Taylor will be temporary executive Chairman and will be Acting CEO from mid-January. Ms Watkins has been appointed the Managing Director of Coca-Cola Amatil.
- Metcash (MTS) — first half results for 2014. Underlying profit was down 1.9% to $119 million but better than expected. Headline profit came in at $98.9 million up 21%. First half dividend 9.5c. Wholesale sales grew 4.8% to $6.58 billion and reported revenue grew 4.9% to $6.64 billion. EBITA fell 6.3% to $193.3 million due to continuing price deflation, greater investment in advertising and building marketing capability and greater competition.
- Ausenco (AAX) — Down 32% after completing a deeply discounted capital raising. It has raised $17.49 million at 70c which was at a significant discount (42%). The company also cut its financial year 2014 guidance. It now expects a net profit of $5.5 million from $14-16 million previously. The raising will help repay debt.
- ANZ (ANZ) — Class action — Australia’s largest consumer class action starts today. Around 38,000 ANZ bank customers have joined the class action to fight for the return of more than $220 million in bank fees. The High Court unanimously rejected the Federal Court’s proposition that penalties or punishments only related to actions that breached a contract, such as late-payment fees. The ANZ class action will now also include dishonour fees of between $25 and $45 imposed on overdrawn accounts.
- Ramsay Health Care (RHC) — Is going ahead with its European expansion plans, paying $223 million for Medipsy which is a French mental health clinic network with 30 hospitals and over 2600 beds. After the acquisition, RHC will have 4100 hospital beds in France, making it the country’s third-largest hospital operator by number of facilities.
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