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A global sell-off on international equity markets saw Australian shares slump 1% to close out the 2010 financial year, recovering from being down over 2% at the open. The last twelve months have been known for high volatility and despite a strong start to the year in July and August last year, markets have generally moved sideways since.

Overall, however, the market is around 8.8% above the close this time last year.

Focusing on today’s retreat, the decline also took a bite out of the Aussie dollar, which has fallen more than 2c in the last 24 hours. On the last day of the financial year, disappointing economic data also hit the market. According to the Housing Industry Association, new home sales fell 6.4% in May from April, largely attributed to an increase in interest rates. Meanwhile, the Bureau of Statistics said job vacancies fell 2.8% to 164,600, seasonally adjusted, in the quarter to May, from the previous corresponding period. The largest contributor to the slump was the public sector, which saw vacancies plummet 12.3%.

At the close on 30 June 2010, the All Ords lost 45.8 to 4,324.8, while the ASX/200 retreated 44.2 to 4,301.5. Around 2.5 billion shares worth around $5.4 billion had changed hands. Materials and Resources stocks were heavily sold across the world, and that was the story in Australia, with the sector down 1.5%. BHP Billiton and Rio Tinto lost 45c and $1.76 to $37.65 and $66.66 respectively. The latter said it had increase increased its stake in Mongolian focused miner, Ivanhoe Mines to 29%. Fortescue slumped 19c to $4.12. CEO Andrew Forrest overnight said that the mining industry was within 24 hours of an agreement with the previous Prime Minister, Kevin Rudd, before he was thrown out of office. Steel stocks, Bluescope and Onesteel retreated 2.8% and 2.6% respectively. The gold stocks were virtually flat, a strong result in the face of widespread losses across much of the market. The Energy sector followed the miners lower, losing 0.7% of its own. Woodside Petroleum retreated 73c to $41.84. Oil Search lost 1.1% to $5.53, while Origin reversed morning losses to finish up 18c to $14.94. Coal miners were mixed. Whitehaven gained 0.6%, despite being down 3.6% at lunch.

Meanwhile, Centennial Coal and New Hope Corporation lost 2.4% and 1.6% respectively.

Among the big four banks CBA lost the most ground, down 74c to $48.64, while ANZ, Westpac and NAB lost between 0.1% and 1.2%. The broader Banks and Financials sector lost 1.1%. Under siege Macquarie tumbled another 96c, or 2.5% to $37.12 in the face of self-described difficult trading conditions for some of its businesses. Most of the major insurers recovered from losses of between 1% and 2.6% at lunch. IAG and Suncorp-Metway were unchanged, while AXA Asia Pacific edged 2c higher to $5.47. The Property Trusts sector, which often trades counter to the broader market, slumped 1.9%. Westfield was down 27c to $12.18, while Mirvac and GPT Group were down 3% and 2.8% respectively. Industrial stocks sank 1.6%.  Qantas lost 3c to $2.20, despite carrying 5.6% in May compared to the previous May. Virgin Blue lost 3.3%. Transport logistics company Asciano and Toll gave up 5c and 7c respectively to $1.62 and $5.48 respectively. Engineering and construction company, Downer EDI sold off its final 49% stake MB Century Drilling, however after paying back shareholders and other costs, would only gain around $5 million. The company’s shares fell 14c to $3.60. Brambles lost 12c to $5.46, while Leighton retreated 56c to $28.95. Elsewhere, the Consumer Discretionary sector was 0.8% lower.  Myer and Harvey Norman were both down 6c to $3.16 and $3.31. It wasn’t all negative for the retailers however with David Jones and Billabong up 6c and 10c to $4.31 and $8.74 respectively. Losses were also seen among media plays, led by Fairfax, which slumped 1.9% to around $1.315 per share. Consumer Staples stocks retreated 0.2%. Wesfarmers and Woolworths gave up 22c and 2c to $28.65 and $27.02 respectively.  The Utilities sector was one of the stronger performers, up 1.2% at the close. AGL Energy was 33c higher $14.70. On the other hand, Telstra retreated 3c to $3.25, leading the broader Telecommunications sector to lose 0.6%. Around the region, the Nikkei 225 lost 188.0 to 9,382.6, the Straits times Index lost 12.1 to 2,818.2 and the NZSE50 retreated 19.0 to 2,972.1. The Hang Seng retreated 119.6 to 20,129.3 Spot gold was trading at US$1,241.35 per ounce, while the Aussie was buying US$0.8506.

A global sell-off on international equity markets saw Australian shares slump 1.7% by lunch. Despite the decline, investors may count themselves lucky with the SPI futures pointing to larger losses before the open and European markets losing around twice as much ground.

The slump also took a bite out of the Aussie dollar, which has fallen more than 2c in the last 24 hours.

On the last day of the financial year, disappointing economic data also hit the market. According to the Housing Industry Association, new home sales fell 6.4% in May from April, largely attributed to an increase in interest rates.

Meanwhile, the Bureau of Statistics said job vacancies fell 2.8% to 164,600, seasonally adjusted, in the quarter to May, from the previous corresponding period. The largest contributor to the slump was the public sector, which saw vacancies plummet 12.3%.

At midday, the All Ords lost 75.6 to 4,295, while the ASX/200 retreated 73.9 to 4,271.8. Around 1.1 billion shares worth around $2.1 billion had changed hands.

Materials and Resources stocks were heavily sold across the world, and that was the story in Australia, with the sector down 2.3%.

BHP Billiton and Rio Tinto lost 83c and $2.26 to $37.27 and $66.16 respectively. The latter said it had increase increased its stake in Mongolian focused miner, Ivanhoe Mines to 29%.

Fortescue slumped 21c to $4.10. CEO Andrew Forrest overnight said that the mining industry was within 24 hours of an agreement with the previous Prime Minister, Kevin Rudd, before he was thrown out of office.

Steel stocks, Bluescope and Onesteel retreated 3% and 2.6% respectively.

The gold stocks were virtually flat, a strong result in the face of widespread losses across much of the market.

The Energy sector followed the miners lower, losing 1.4% of its own. Woodside Petroleum retreated 87c to $41.70.

Oil Search lost 0.7% to $5.55, while Origin was down 5c to $14.71.

Coal miners were also down, with Whitehaven, Centennial Coal and New Hope Corporation slumping 3.6%, 4.6% and 2.2% respectively.

Among the big four banks CBA lost the most ground, down 92c to $48.46, while ANZ, Westpac and NAB lost between 1.1% and 1.7%.

The broader Banks and Financials sector lost 1.8%.

Under siege Macquarie tumbled another $1.66, or 4.4% to $36.42 in the face of self-described difficult trading conditions for some of its businesses.

All the major insurers were down between 1% and 2.6%.

The Property Trusts sector, which often trades counter to the broader market, slumped 1.7%.

Westfield was down 26c to $12.19, while Mirvac and GPT Group were down 3% and 2.1% respectively.

Stockland and Goodman Group however capped losses, albeit with only very modest gains.

Industrial stocks sank 2%.

Qantas lost 3c to $2.20, despite carrying 5.6% in May compared to the previous May. Virgin Blue lost 2.5%.

Transport logistics company Asciano and Toll gave up 3.5c and 11c respectively to $1.635 and $5.44 respectively.

Engineering and construction company, Downer EDI sold off its final 49% stake MB Century Drilling, however after paying back shareholders and other costs, would only gain around $5 million.

The company’s shares fell 15c to $3.59.

Brambles lost 19c to $5.39, while Leighton retreated 65c to $28.86.

Elsewhere, the Consumer Discretionary sector was 1.5% lower.

Myer and Harvey Norman were 8c and 4c lower $3.14 and $3.33.

It wasn’t all negative for the retailers however with David Jones and Billabong up 4c and 18c to $4.29 and $8.83 respectively.

Many of the gamers, including Aristocrat, Tabcorp and Crown were down between 0.6% and 1.1%.

Losses were more pronounced among media plays, led by Fairfax, which slumped 4.3% to around $1.28 per share.

Consumer Staples stocks retreated 0.9%.

Wesfarmers and Woolworths gave up 27c and 16c to $28.60 and $26.88 respectively.

The Utilities sector was one of the stronger performers, just 0.4% down at lunch.

AGL Energy was 9c higher $14.46.

On the other hand, Telstra retreated 3c to $3.25, leading the broader Telecommunications sector to lose 0.6%.

Around the region, the Nikkei 225 lost 204.6   to 9,366.1, the Straits times Index added 27.4 to 2,802.9 and the NZSE50 retreated 30.4 to 2,960.6.

Spot gold was trading at US$1,242.80 per ounce, while the Aussie was buying US$0.849.  

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Downer offloads Century Drilling
Downer EDI has announced the sale of the company’s remaining 49% of MB Century Drilling, an oil, gas and geothermal drilling business, to Mohamed Al Barwani Holding Company LLC. The company said that cash inflows would be around $88 million, however there would be a pre-tax gain of only around $5 million once repayments and impairments had been factored in.

At noon, Downer shares were trading down 14c to $3.60.

Ausenco writes down $6.8m
Ausenco, whose share price continues to hover around all-time lows, this morning confirmed it would take a $6.8 million impairment charge on the goodwill of the company’s Energy business. However, Ausenco said the impairment would affect neither cash flow, or its compliance with debt covenants.

Half way through the day, Ausenco shares were trading down 10.5c at $1.855.

Qantas passenger numbers up 5.6% in May
Across the Qantas Airways group May passenger numbers climbed by 5.6% from the previous May, however revenue seat factor, a key measure of profitability for an airline, fell 2.7% to 75%. However for the financial year to date at the end of May, revenue seat factor came in at 80.7%, 1.2% higher than in the previous year.

At midday, Qantas shares were trading down 4c to $2.19.

Rio lifts stake in Ivanhoe Mines to 29%
Rio Tinto has said it would increase its stake in Ivanhoe Mines to 29.6% through the exercise of all its Series A warrants. This represents a 7.3% hike in ownership of the company by Rio Tinto, and is set to cost the miner US$393 million.

At midday, Rio Tinto shares were trading down $1.99 to $66.43.

Shares tumbled in the US overnight as investors sold out of equities on an increasingly pessimistic outlook over the strength of the global economic recovery. The latest sell-off was prompted by a slump in US consumer confidence and a slowdown in Chinese exports.

The Conference Board ‘Consumer Confidence Index’ slumped to 52.9 from 62.7, against expectations of a fall to 62.

Another measure of volatility, the VIX, jumped 18% to levels seen in late May and early June.

Investors moved their money to the US government’s 10 year bonds, with yields there falling below 3% for the first time since April 2009.

The Dow Jones fell 268.22 points, or 2.65%, to 9,870.30, the S&P 500 sank 33.33 points, or 3.10%, to 1,041.24 and the NASDAQ lost 85.47 points, or 3.85%, to 2,135.18.

Among the banks, Citigroup retreated 5.3%, while Bank of America, American Express, Morgan Stanley and Wells Fargo all retreated between 4% and 5%.

Apple tumbled 4.5% among tech stocks, while rival Microsoft was 4.1% weaker.

Search engines Google and Yahoo! were down 3.8% and 4.7% respectively.

Bookseller Barnes & Noble tumbled 19.1% after posting a bigger than expected loss.

Elsewhere Tesla Motors, a maker of electric cars, traded for the first time on NASDAQ Tuesday. Its shares surged 40.5%.

Ford shares sank 5.3%.

Meanwhile, the bellweather industrial stocks on the Dow index, Boeing and Caterpillar tumbled 6.3% and 5.5% respectively.

NYMEX light crude oil for August delivery fell $2.70 to $75.56 a barrel.

COMEX gold for August delivery gained $4.40 to $1,243 an ounce.

European Markets

European stocks all tumbled on concerns Chinese economic growth was cooling. Losses were heavily felt in commodity stocks, with the major miners all tumbling.

The UK benchmark FTSE 100 lost 157.46, or 3.10% to. 4,914.22. The German DAX gave up 205.19, or 3.33% to 5,952.03, the French CAC40 slumped 143.46, or 4.01% to 3,432.99.

UK banks, Barclays, Royal Bank of Scotland and Lloyds were down 6.3%, 3.9% and 2.9% respectively.

On the continent, BNP Paribas slumped 6.9%, while Deutsche Bank was 3.9% down.

Across other industries, Vodafone shed 2.6% after Credit Suisse cut its outlook for the company to ‘neutral’.

Aussie peers, Rio Tinto and BHP Billiton tumbled 6.4% and 5.8% respectively. Anglo American was 5.6% lower.

BP was 1.7% lower, as it seeks to raise funds to shore up its balance sheet. Royal Dutch Shell was 3.5% lower.

Japanese Markets

Japanese stocks fell for the sixth successive day Tuesday, despite a solid gain in morning trading. As with other international markets, the decline was triggered by concerns over a decline in Chinese economic output, while a stronger yen also hit exporters.

The Nikkei 225 shed 123.27, or 1.27% to 9,570.67.

Among the banks, Mizuho Financial Group, the most heavily traded stock on the Japanese exchange, retreated 1.3%, while rival bank Mitsubishi UFJ lost 1%.

Heavy equipment maker, Hitachi Construction Machinery, shed 2.2%. Investors sold out of that stock as it exports heavily to China.

Canon shed 2.7% and Toshiba Corp fell 1.7%, while Sony edged 0.2% above the line.

Car makers Honda and Nissan gave up 1.9% and 1.3%. Toyota gave 0.6%.

Hong Kong Markets

The Hang Seng lost ground, once again on concerns over Chinese economic strength.

The Hang Seng fell 477.78, or 2.31% to 20,248.90.

Among the banks, heavyweight lender ICBC was 2.6% below the line, while Bank of China was down 2.5%. HSBC was off 2.1%.

Li & Fung, which makes clothes for Australia’s Bonds and Wal-Mart in the US, slumped 4.7%. Footwear maker Yue Yuen Holdings was flat.

As in other parts of the world, commodity stocks were particularly heavily sold. Jiangxi Copper and Yanzhou Coal Mining were down 3.3% and 6.1% respectively.

Cnooc was 3.6% lower, while Petrochina was 2% weaker.

The Aussie market reversed morning gains, tumbling through the afternoon to close down 0.9%. The miners lost ground, however it was the energy sector and consumer staples stocks where losses were greatest.

With only one day to go before the new financial year, the ASX/200 is 10% higher than its close at the end of the last financial year.

At the close, the All Ords slumped 39.1 to 4,370.6, while the ASX/200 retreated 38.8 to 4,345.7. Around 1.8 billion shares worth around $4.4 billion had changed hands.

BHP Billiton and Rio Tinto lost 1% and 0.3% respectively. RBS this morning speculated that Rio shareholders might vote against the proposed merger of iron ore operations with BHP in the Pilbara region.

Fortescue retreated 11c to $4.31.

Newcrest and Lihir were down 1.8% and 2% respectively to $35.29 and $4.32.

Steel stocks, Bluescope and Onesteel edged between 0.5% and 1.3% lower, while Nufarm was upgraded to Neutral by Credit Suisse, sending that company’s shares 23c higher to $5.43.

The broader Materials and Resources sector fell 1%.

The Banks and Financials sector retreated 0.8%. Among the major banks, Westpac reversed morning gains to close down 26c to $21.25, while ANZ sank 42c to $21.87.

Investment bank Macquarie shed 2.2%, extending its worst five-day loss in over 15 months. The banks have been hit by deteriorating business conditions and the loss of key staff.

AMP and QBE were 1.1% and 0.9% lower, joined below the line by Suncorp-Metway, which lost 3c to $8.04.

Property Trusts traded in the opposite direction to the broader market, moving to a 1% gain for the day, led by Westfield, which surged 15c to $12.45.

Goodman Group was up 2c to 64c.

A 71c decline in the price of Woodside shares to $42.57 led the Energy sector to a 1.2% retreat. Santos slid 7c to $12.59.

Linc Energy was down 1.9% despite saying it is experiencing success in the development of a hydrogen fuel cell.

Downer EDI tumbled 25c, or 6.3% to $3.74 after responding to media reports, saying the company had ample liquidity with in excess of $600 million in available funds.

The Industrials sector eased 1.1% lower.

Leighton - the sectors biggest company – lost 1.6% to $29.51, while airliner Qantas dipped 7c, or 3% to $2.23.

Campbell Brothers rallied 4.8% to $30.71 after forecasting a record half-year profit.  

The Consumer Staples and Discretionary sectors were 1.1% and 0.5% softer.

Newscorp helped media stocks higher with a 1.1% gain to $17.01, while gamer Tatts Group eased just 2c lower to $2.23, despite writing off $165 million, mainly from its UK businesses.

Wesfarmers reversed early gains to close 32c, or 1.1% in the red at $28.8, while Woolworths shed 43c to $27.04. 

Around the region, the Nikkei 225 lost 123.3 to 9,570.7, the Straits times Index gave up 35.6 to 2,834.4 and the NZSE50 retreated 17.3 to 2,991.1. The Hang Seng was down 222.4 to 20,504.3

Spot gold was trading at US$1,238.47 per ounce, while the Aussie was buying US$0.8632. 

Local shares pushed higher Tuesday morning, buoyed by the major miners and the banks. Investors were encouraged by speculation the new Prime Minister will seek to end the impasse with the mining industry over the RSPT quickly, while stronger metal prices also strengthened the sector.

With only day to go before the new financial year, the ASX/200 was 0.4% stronger by lunch.

At midday, the All Ords added 12.1 to 4,421.8, while the ASX/200 put on 14.6 to 4,399.1. Around 1.1 billion shares worth around $4.9 billion had changed hands.

BHP Billiton and Rio Tinto gained 0.8% and 1.7% respectively. RBS this morning speculated that Rio shareholders might vote against the proposed merger of iron ore operations with BHP in the Pilbara region.

Newcrest and Lihir were down 1.9% and 1.8% respectively to $35.24 and $4.33 respectively.

Steel stocks, Bluescope and Onesteel edged around 1% higher, while Nufarm was upgraded to Neutral by Credit Suisse, sending that company’s shares 27c higher to $5.47.

The broader Materials and Resources sector gained 0.3%.

The Banks and Financials sector rose 0.6%. Of the major banks, Westpac put on 26c to $21.77, while NAB added 19c to $23.72.

Investment bank Macquarie eased 0.1% lower, extending its worst five-day loss in over 15 months. The banks have been hit by deteriorating business conditions and the loss of key staff.

AMP and QBE were 0.7% and 0.3% lower, countering modest gains from the other insurers.

The Property Trusts were subdued, easing to a 0.4% gain for the morning. Goodman Group was the only significant mover, up 2c to 64c.

A 21c decline in the price of Woodside shares couldn’t stop a 0.2% overall rise from the Energy sector. Santos countered with a 15c rally to $12.81.

Linc Energy was 4.1% stronger after saying it is experiencing success in the development of a hydrogen fuel cell.

Downer EDI tumbled 20c, or 5% to $3.79 after responding to media reports, saying the company had ample liquidity with in excess of $600 million in available funds.

The Industrials sector eased 0.4% lower, despite Brambles and Leighton - the sectors two biggest companies - edging higher.

Elsewhere Asciano, Toll and Transurban were between 1% and 1.5% lower.

The Consumer Staples and Discretionary sectors were 0.3% and 0.2% stronger.

Newscorp helped media stocks higher with a 1.8% gain to $17.14, while Tatts Group eased just 1c lower to $2.24, despite writing off $165 million, mainly from its UK businesses.

Wesfarmers rallied 36c to $29.55, countered by a 17c fall in the price of Woolworths shares to $27.30 

Around the region, the Nikkei 225 gained 47.7 to 9,741.6, the Straits times Index added 9.9 to 2,879.9 and the NZSE50 retreated 13.1 to 2,995.3. 

Spot gold was trading at US$1,236.90 per ounce, while the Aussie was buying US$0.8717.  

Wall Street ended a choppy session just below the gain line Monday as investors remain cautious ahead of the release of several significant economic reports later in the week. Consumer stocks bounced off Friday’s falls, while banks weighed.

In economic news, personal income increased slightly below what was expected at 0.4% in May according to the Commerce Department. Personal spending rose 0.2%, higher than the 0.1% increase forecast.

The Dow Jones shed 5.29 points, or 0.05%, to 10,138.52, the S&P's 500 dipped 2.19 points, or 0.20%, to 1,074.57 and the NASDAQ lost 2.83 points, or 0.13%, to 2,220.65.

Financials closed lower in the wake of the reform bill that was finalised by Congress last week. It is expected to be voted on this week and sent to President Obama in July.

JPMorgan and Goldman Sachs fell 2.3% and 2.2%, while Bank of America retreated 1.2%.

Citigroup bucked the trend, adding 1.5%.

It was a mixed day for the tech heavyweights. Microsoft and Oracle slid 0.9% each, while IBM and Apple countered by gaining 1.5% and 1.1%.

Consumer stocks were boosted by the better than expected consumer spending report. Coca-Cola and Wal-Mart rose 1.6% each.

Tobacco companies gained ground after the Supreme Court declined to listen to an appeal over the government's capacity to collect US$280 billion from the industry for alleged fraud in its marketing.

Altria and Reynolds put on 3.3% and 4.1%.

Exxon Mobil and ConocoPhillips shed 1.1% and 1.4% as NYMEX light crude oil for August delivery fell US90c to US$77.96 a barrel.

BP ADR’s edged 0.1% higher after the besieged oil giant revealed it has spent US$2.65 billion on costs related to the Deep Water Horizon oil spill in the Gulf of Mexico.

COMEX gold's August contract dropped US$16.60 to US$1,239.20 per ounce.

European Markets

European stocks moved higher for the first time in five sessions as the G20 nations vowed to preserve economic growth while reducing debt at a meeting in Toronto. Positive consumer spending data out of the US also buoyed the market.

The UK benchmark FTSE 100 added 25.21, or 0.50% to 5,071.68. The French CAC40 advanced 56.72, or 1.61% to 3,576.45, while the German DAX gained 86.62, or 1.43% to 6,157.22.

UK banks Lloyds and Barclays gained 2.2% and 1.5%, while Royal Bank of Scotland shed 2.2%.

On the continent BNP Paribas and Deutsche Bank rose 3.6% and 0.9%.

Peugeot Citroen rallied 2.8% on reports the automaker has increased its sales target for the DS3 model.

Porsche put on 3.1% on the back of a broker upgrade.

Aussie miners Rio Tinto and BHP Billiton advanced 2.1% and 0.8% following a rise in metals prices.

Anglo American gained 2.2%, while company BP bounced off a 14-year low by adding 1.4%.

Premier Oil climbed 7.1% after the company said one of its North Sea well encountered oil-bearing sandstones.

Japanese Markets

Japan’s Nikkei retreated to its lowest close in more than a fortnight on a very thin day’s trade. Concerns the benchmark could test six-month lows that were recently hit heightened.

The Nikkei 225 lost 43.54, or 0.45% to 9,693.94.

Toyota dropped 1.1% to a 15-month closing low on reports it was recalling and halting sales of its 2010 Lexus HS250h hybrid sedan temporarily due to a potential mechanical issue.

Mazda dipped 1.4%, while consumer electronics companies Canon and Panasonic fell 1.1% and 1%.

Mizuho Financial shed 2.6% to a seven-month low after revealing it is set to raise a higher-than-anticipated US$9.6 billion in a global offering.

Mitsubishi UFJ and Sumitomo Mitsui lost 1.9% each.

Shinsei Bank slumped 4.9% after a target price downgrade from Credit Suisse.

Nippon Yusen K.K. and Mitsui O.S.K. Lines slid 2.1% and 3.2% after a decline in the Baltic Dry Index.  

Hong Kong Markets

The Hang Seng edged higher, snapping two days of declines. Property stocks buoyed the market, while oil plays edged higher.

The Hang Seng edged 35.89, or 0.17% to 20,726.68.

Heavyweight lender ICBC put on 0.3%, while HSBC, which makes up one-sixth of the Hang Seng index, eased 0.3% below the line.

Sino Land added 2.2%, while Sun Hung Kai Properties added 1.1%.

Clothing maker, Li & Fung lost 1%, while mobile phone maker Foxconn International gave up 1.1%.

New World Development put on 1.9%.

Off-shore oil producer Cnooc added 2.4%, while Petrochina edged 0.2% above the line. 

Australian shares got off to a disappointing start to the week as the broader indices closed 0.7% in the red. While it was relatively mixed among the mid and smaller capped stocks, consistent falls from the blue chips weighed.

At the bell, the All Ords lost 29.7 to 4,409.7, while the ASX/200 fell 28.5 to 4,384.5. Around 1.6 billion shares worth around $3.9 billion had changed hands.

BHP Billiton and Rio Tinto retreated 31c and $1.00 to $38.49 and $68.60 respectively.

Steel stocks were also sold. Bluescope, Onesteel and metal recycler Sims Group retreated 1.8%, 1.6% and 2.7% respectively.

Fortescue Metals Group reversed early losses to close 6c, or 1.4% higher at $4.42.

Many smaller gold plays once again countered the broader decline among Materials and Resources stocks.

St Barbara rose 2.8%, while newcomer, Eldorado Gold tacked on 2.3%.

However, Newcrest and Lihir, the two biggest gold miners, lost 8c and 3c to $35.92 and $4.41 respectively.

The sector retreated 0.8%.

Oil Search added 2c to $5.72, however the broader Energy sector gave up 0.4% as several majors lost ground.

Santos and Origin weakened 0.3% and 0.7% respectively.

Coal miner Whitehaven tumbled 18c to $4.84, while WorleyParsons jumped 35c to $22.15 after signing a deal with Brazilian mining giant Vale for engineering work on an iron project in that country.

The Banks and Financials sector lost 0.7%.

Among the big four banks, CBA edged 5c lower to $49.95, while NAB and Westpac were both down 1.1% to $23.53 and $21.51.

ANZ shed 0.8%, while investment banks Macquarie retreated 55c, or 1.4% to $38.95.

Meanwhile, insurer QBE gained 12c to $18.47.

The Property Trusts sector was 0.7% lower, with Westfield virtually flat, and GPT and Goodman Group 1.7% and 3.1% below the gain line.

The Consumer Staples sector was flat. Wesfarmers added 9c, or 0.3% to $29.19.

Coca-Cola and Foster’s retreated 11c and 5c to $11.92 and $5.64 respectively.

Beleaguered rural services company, Elders was 4.1% higher at 38c. The company hit an all-time high of $28.30 on this day three years ago.

The Consumer Discretionary sector retreated 0.7%.

The retailers were weaker. Billabong, Pacific Brands and Harvey Norman dropped 1.1%, 2.7% and 1.7% respectively.

Media stock Newscorp fell 32c, or 1.9% to $16.83.

The Industrials sector was down 1.2%. Brambles continues to suffer after losing a key US customer several weeks ago. Its shares lost 21c to $5.56.

Leighton shed 66c to $30.00, while Auckland International Airport slumped 3.8% to $1.53.

Telstra shed 1c to $3.29 as the Telecommunications sector weakened 0.5%.

Around the region, the Nikkei 225 fell 43.5 to 9,693.9, the Straits times Index gained 10.9 to 2,862.5 and the NZSE50 retreated 25.7 to 3,008.4. The Hang Seng advanced 72.4 to 20,763.2.

Spot gold was trading at US$1,255.47 per ounce, while the Aussie was buying US$0.8735. 

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Asciano restructures bank facilities, plans to simplify corporate structure
Asciano Group said it has completed the restructuring of its bank facilities. The ports and rail operator said the restructure provides for the release of security held by the bank syndicate and removes prohibitions on borrowing outside the existing facilities.

At the close, Asciano shares were up 1.5c to $1.69.

WorleyParsons secures Vale contract
Engineering firm WorleyParsons said that Brazilian mining giant Vale had awarded a “significant cost reimbursable” contract to a consortium of WorleyParsons and SNC-Lavalin for engineering and project management work at Vales’s multi-billion dollar S11D project in Brazil. WorleyParsons, in a statement to the Australian Stock Exchange, declined to put a figure on the expected value of the contract.

At the bell, WorleyParsons shares were up 35c to $22.15.

Wattyl accepts Valspar offer
Wattyl has recommended shareholders accept The Valspar Corporation’s takeover bid, which values the Australian paint maker at approximately $142m. The US paint and coatings company offered shareholders $1.67 per share.

At the end of the day, Wattyl shares were trading up 35.5c to $1.615.

A few days before a new financial year begins, Aussie shares drifted lower to be down around 0.4% by lunch. In very light trade losses were widespread, although relatively modest.

At midday, the All Ords lost 35.7 to 4,403.7, while the ASX/200 fell 33.8 to 4,379.2. Around 1.1 billion shares worth around $4.9 billion had changed hands.

BHP Billiton and Rio Tinto retreated 23c and 77c to $38.57 and $68.83 respectively.

Steel and iron ore stocks were also sold. Bluescope, Onesteel and metal recycler Sims Group retreated 1.4%, 2.5% and 3.1% respectively.

Fortescue Metal Group lost 7c, or 1.6% to $4.29.

Many smaller gold plays once again countered the broader decline among Materials and Resources stocks.

St Barbara rose 1.4%, while newcomer, Eldorado Gold tack on 2%.

However, Newcrest and Lihir, the two biggest gold miners, lost 6c and 3c to $35.94 and $4.41 respectively.

The sector retreated 0.8%.

Oil Search jumped 11c to $5.81, however the broader Energy sector also gave up 0.8% as several majors lost ground.

Woodside and Origin weakened 0.9% and 0.5% respectively.

Coal miner Whitehaven tumbled 20c to $4.82, while WorleyParsons jumped 45c to $22.25 after signing a deal with Brazilian mining giant Vale for engineering work on an iron project in that country.

The Banks and Financials sector lost 0.7%.

Among the big four banks, only CBA made ground, up 22c to $50.22 by lunch.

Macquarie retreated 70c, or 1.8% to $38.80.

Meanwhile, only QBE, up 10c to $18.45 made ground among the insurers.

The Property Trusts sector was 0.6% lower, with Westfield virtually flat, and Mirvac and Stockland 1.5% and 0.8% below the gain line.

The Consumer Staples sector lost 0.2%, despite Wesfarmers adding 20c, or 0.7% to $29.30.

Coca-Cola and Foster’s retreated 14c and 4c to $11.89 and $5.65 respectively.

Beleaguered rural services company, Elders was 5.5% higher at 38.5c. The company hit an all-time high of $28.30 on this day three years ago.

The Consumer Discretionary sector retreated 1.2%.

The retailers were weaker. Myer, David Jones and Harvey Norman sank 1.2%, 0.9% and 2% respectively.

The gamers and media stocks were led lower by Crown and Newscorp, which sank 1% and 2.4%.

The Industrials sector was down 1.5%. Brambles continues to suffer after losing a key US customer several weeks ago. Its shares fell 11c to $5.66.

Leighton shed 36c to $30.30, while MAp slumped 3.2% to $2.72.

CSR was flat, a positive result compared to its peers, as it continues to move towards spinning off its sugar division.  

Around the region, the Nikkei 225 fell 31.8 to 9,705.7, the Straits times Index gained 9.4 to 2,861.0 and the NZSE50 retreated 9.9 to 3,024.2.

Spot gold was trading at US$1,256.30 per ounce, while the Aussie was buying US$0.8760. 

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WorleyParsons secures Vale contract
Engineering firm WorleyParsons said that Brazilian mining giant Vale had awarded a “significant cost reimbursable” contract to a consortium of WorleyParsons and SNC-Lavalin for engineering and project management work at Vales’s multi-billion dollar S11D project in Brazil. WorleyParsons, in a statement to the Australian Stock Exchange, declined to put a figure on the expected value of the contract.

At midday, WorleyParsons shares were up 40c to $22.20.

Wattyl accepts Valspar offer
Wattyl has recommended shareholders accept The Valspar Corporation’s takeover bid, which values the Australian paint maker at approximately $142m. The US paint and coatings company offered shareholders $1.67 per share.

At lunch, Wattyl shares were trading up 35c to $1.61.

Wall Street was mixed to end the week, with a pessimistic read on GDP figures, countered by a less restrictive Wall Street reform bill than expected. Banks and some defensive stocks were stronger, while consumer focused stocks weighed.

Out of Washington, the government reported GDP grew at a 2.7% annualised rate in the first quarter, revised down from a previously reported 3%.

Meanwhile, the University of Michigan's final consumer sentiment index for June rose to 76 points, up from an expected 73.6.

The Dow Jones dropped 8.99, or 0.09% to 10,143.81, the S&P 500 gained 3.07 points, or 0.29% to 1,076.76 and the NASDAQ rose 6.06 points or 0.27% to 2,223.48.

Among the banks, Citigroup rallied 4.2%, while Goldman Sachs jumped 3.5%.

JPMorgan and Wells Fargo put on 3.7% and 2.7% respectively.

Blackberry maker, Research In Motion tumbled 10.8% after reporting an increase in revenue, however the figure was still below expectations.

Apple, the maker of the rival iPhone, lost 0.9%. Microsoft shed 1.9%.

Meanwhile, Coca-Cola retreated 3%. Pepsi was 2.6% lower.

Pharmaceutical giant Pfizer rallied 1.2%, while Merck put on 0.9%.

NYMEX light crude oil for August delivery rose US$2.11 to US$78.62 a barrel.

Exxon Mobil retreated 1.6%, while Chevron and ConocoPhillips both gave up 1.1%.

BP ADR’s tumbled another 6% as the company struggles to control the oil spill in the Gulf of Mexico.

COMEX gold for August delivery gained US$10.60 to US$1,256.70 an ounce.

European Markets

Miners and oil plays led a retreat across European stocks Friday.

The UK benchmark FTSE 100 retreated 53.76, or 1.05% to 5,046.47. The French CAC40 lost 35.63, or 1.00% to 3,519.73, while the German DAX was down 44.88, or 0.73% to 6,070.60.

In the UK, Barclays lost 2%, while RBS retreated 1.6%. The more volatile Lloyds gave up 3.7%.

On the continent, BNP Paribas was off 1.1% and Deutsche Bank gave up 1.3%.

Among the major miners, BHP and Rio Tinto gave up 2.8%. This came despite most metals making modest gains on the London Metal Exchange.

BP fell 6.4%, hitting fresh 14-year lows. Royal Dutch Shell was down 1.3%, while BG Group was 1.2% lower.

Japanese Markets

Japan’s Nikkei slumped to a two-week low on Friday. Losses were broad based.

The Nikkei 225 fell 190.86, or 1.92% to 9,737.48.

Mizuho Financial dropped 1.3% to a seven-month low on reports the bank will decide on Friday to sell up to 6 billion new shares as it looks to raise capital through a global offering.

Sumitomo Mitsui and Mitsubishi UFJ slid 0.7% and 0.5%.

Canon slumped 4.5% on the back of a broker downgrade from Credit Suisse.

Sony and Panasonic lost 2% and 2.1%.

Tokyo Electron weakened %, also after Credit Suisse downgraded its rating on the stock.

Automakers Nissan, Mazda and Toyota shed between 1.9% and 2.3%.

Hong Kong Markets

The Hang Seng retreated off recent strong gains. Global optimism was dampened with several lower reads on US consumer data.

The Hang Seng was down 42.70, or 0.21% to 20,690.79.

Heavyweight lender ICBC retreated 0.5%, while Bank of China gave up 0.3%.

HSBC edged 0.1% above the line.

Cosco Pacific, one of the largest shippers in the world, slumped 3.4%.

Esprit Holdings, which gets most of its sales from Europe, was 2.3% weaker. Li & Fung put on 0.1%.

Zijin Mining Group, China’s number one gold miner, lost 1.2% after cancelling its proposed buyout of Aussie miner Indophil after a Philippine province banned open-pit mining. 

Aussie shares tracked lower throughout the day as the ASX/200 finished 1.5% in the red. The miners gave up much of yesterday’s gains, while banks also contributed to declines.

At the end of the day, the All Ords lost 64.7 to 4,439.4, while the ASX/200 fell 66.7 to 4,413.0. Around 2.2 billion shares worth around $7.7 billion had changed hands.

Consistent losses from the big four banks led the Banks and Financials sector 1.6% lower. 

NAB shed 58c, or 2.4% to $23.80, while the other three were between 1.6% and 1.7% in the red.

Macquarie shed 2.8% to $39.50 a day after the investment bank warned that market conditions were affecting some of its business activity levels. The stock is trading below the $40 mark for the first time since July 2009.

Insurer Suncorp-Metway was the worst performer among the insurers, down 20c, or 2.4% to $8.14.

Materials and Resources sector retreated 1.7%, despite Prime Minister Gillard saying that all aspects of the RSPT were on the negotiating table.

Rio Tinto and BHP Billiton shed 3% and 2.1% to $69.60 and $38.80 respectively.

Iron ore producer Fortescue dropped 18c, or 4% to $4.36.

Steel stocks OneSteel and BlueScope weakened 2.5% and 2.2%.

In London overnight the price of copper jumped 2.8%, but this and the rise in all of the other metals prices failed to have a positive impact. 

Gold stocks outperformed after a rise in the price of the yellow metal as investors looked for a safe haven. Newcrest and Lihir were 1% and 1.6% higher to be trading at $36.00 and $4.44.

Orica edged 28c lower to $25.11. Credit Suisse upgraded its rating on the chemicals company to ‘outperform’.

A 2.9% drop to $43.28 from heavyweight Woodside saw that the Energy sector was down 1.6%. A stronger euro sent crude prices higher in New York.

Oil Search and Santos lost 0.2% and 0.9% to $5.70 and $12.70 despite Citigroup giving favourable coverage to both stocks.

Caltex slumped 6.7% to $9.66 after announcing a weaker than expected earnings forecast last night.

It was a mixed day for the Industrial stocks as the sector edged 0.6% lower.

Brambles and Asciano were the standouts, adding 3% and 0.9% to $5.77 and $1.675.

However, their gains were outweighed elsewhere including Leighton which slid 53c, or 1.7% to $30.66.

MAp lost 3c to $2.81 amid reports the owner of Sydney Airport is considering selling its stake in Mexican airport group Aeroportuario del Sureste.

Qantas was 1.3% lower despite a broker upgrade from JPMorgan.

A 76c, or 2.5% drop to $29.10 from Wesfarmers outweighed a 1.3% gain from Coca-Cola Amatil as the Consumer Staples sector dipped 1.1%.

Consumer Discretionary retreated 1.4% on the back of weakness in the media sub-sector.

Newscorp and Fairfax shed 2.4% and 2.5% to $17.15 and $1.355 respectively.

Telecommunications giant Telstra lost 4c to $3.30 as the sector slid 1.1%.

Property Trusts was down 1.5%, despite being flat at lunch. Westfield retreated 1.8% to $12.31. 

Around the region, the Nikkei 225 fell 191.7 to 9,736.7, while the Straits times Index gained 2.5 to 2,850.1. The NZSE50 retreated 15.4 to 3,034.1 and the Hang Seng lost 123.7 to 20,609.8

Spot gold was trading at US$1,242.45 per ounce, while the Aussie was buying US$0.8621.

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Reject Shop confirms guidance as chairman retires
The Reject Shop confirmed that its chairman Brian Beattie would step down from the post following the company’s next board meeting on 14 July. At the same time the discount retailer reaffirmed previous guidance of a post-tax profit of around $22.5 million for the year to 30 June.

At the end of the day, The Reject Shop shares were down 8c to $16.42.

ASG awarded new contract
ASG Group said it has secured a new contract with Vodafone Hutchison Australia (“VHA”) to provide corporate IT support services for an initial term of five years with two one-year extension options. The company said there is scope to provide additional project services.

At the bell, ASG shares were up 1.5c to $1.36.

Lend Lease to pay $618m for Singapore site
Lend Lease said, along with one of its managed funds the Asian Retail Investment Fund (ARIF), they have agreed to pay $618 million for the Jurong Gateway Road site in Singapore. The group made the announcement after they outbid a rival for the large scale mixed use suburban development by $17 million.

At the close, Lend Lease shares were down 3c to $7.42.

Caltex expecting profit down by 50%
Caltex Australia said the strengthening Aussie dollar from last year would take a bite out of the company’s profits for the six months to 30 June 2010. The oil refiner said it was expecting, on a replacement cost of sales operating profit (RCOP) basis and not including significant items, would be between $140 million and $160 million, down around 50% from last year. 

At the finish, Caltex shares were trading down 69c to $9.66.