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Aussie shares opened lower after a weak lead from Wall Street overnight and despite a rise in commodity prices in London. The broader indices were down 0.9% following broad-based losses within the resource and financial sectors.

At midday, the All Ords lost 41.0 to 4,463.1, while the ASX/200 fell 42.1 to 4,437.6. Around 1.1 billion shares worth around $4.9 billion had changed hands.

Consistent losses from the big four banks led the Banks and Financials sector 1.2% lower.

They were all between 1.2% and 1.7% in the red, with Westpac the worst performer, down 38c to $21.74.

Macquarie shed 2% to $39.83 a day after the investment bank warned that market conditions were affecting some of its business activity levels. The stock is trading at 11-month lows.

Insurer Suncorp-Metway slumped 23c, or 2.8% to $8.11.

Opinions on whether the new Prime Minister Julia Gillard will negotiate with the miners on the proposed super profits tax remain divided as the Materials and Resources sector retreated 0.9%.

Rio Tinto and BHP Billiton shed 1.8% and 1% to $70.45 and $39.25 respectively.

Iron ore producer Fortescue dropped 10c, or 2.2% to $4.44.

Steelmakers OneSteel and BlueScope weakened 2.2% each.

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 both 1.8% higher to be trading at $36.29 and $4.45.

Orica edged 11c lower to $25.28. Credit Suisse upgraded its rating on the chemicals company to ‘outperform’.

A 2.2% drop to $43.60 from heavyweight Woodside saw that the Energy sector was down 1% at lunch. A stronger euro sent crude prices higher in New York.

Oil Search and Santos gained 1.1% and 0.5% to $5.77 and $12.88 after Citigroup gave favourable coverage to both stocks, while being more bearish on Woodside.

Caltex slumped 6.8% to $9.65 after announcing weaker than expected earnings forecast last night.

It was a mixed morning for the Industrial stocks as the sector edged 0.3% lower.

Brambles and Asciano were the standouts, adding 1.3% and 1.5% to $5.67 and $1.685.

However, their gains were outweighed elsewhere including Leighton which slid 26c, or 0.8% to $30.93.

MAp lost 1c to $2.83 amid reports the owner of Sydney Airport is considering selling its stake in Mexican airport group Aeroportuario del Sureste.

Qantas was flat despite a broker upgrade from JPMorgan.

Intoll fell 2.3% to $1.06.

A 59c, or 2% drop to $29.27 from Wesfarmers outweighed 1.9% and 2.1% gains from beverage makers Coca-Cola Amatil and Foster’s as the Consumer Staples sector dipped 0.6%.

Consumer Discretionary retreated 1.3% on the back of weakness in the media sub-sector.

Newscorp and Fairfax shed 2.7% and 2.5% to $17.09 and $1.355 respectively.

Telecommunications giant Telstra lost 2c to $3.32 as the sector slid 0.5%.

The only sector not to fall below the gain line was Property Trusts and it was flat. Westfield advanced 1.3% to $12.70. 

Around the region, the Nikkei 225 fell 156.6 to 9,771.8. The Straits times Index eased just 6.9 points lower to 2,854.5. The NZSE50 retreated 13.4 to 3,036.0.

Spot gold was trading at US$1,245.40 per ounce, while the Aussie was buying US$0.8664.

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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.

Half way through the day, The Reject Shop shares were trading up 6c at $16.56.

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 noon, ASG shares were unchanged at $1.345.

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 midday, Lend Lease shares were down 8c to $7.37.

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. 

Half way through the day, Caltex shares were trading down 70c to $9.65.

Wall Street slumped Thursday as investors digested mixed economic reports over the last couple of days and after the Fed downgraded its economic outlook. Financial and energy plays were the major drags. 

In economic news, new unemployment claims declined from a revised 472,000 in the previous week to 457,000 last week, to be in line with forecasts. Continuing claims fell to a better than anticipated 4,548,000.

Meanwhile, durable goods orders dropped a better than expected 1.1% in May after a 3% rise the previous month.

According to Freddie Mac the average rate for 30-year fixed loans fell from 4.75% to 4.69%. This was the lowest level on record.

The Dow Jones dropped 45.64 points, or 1.41%, to 10,152.80, the S&P's 500 shed 18.35 points, or 1.68%, to 1,073.69 and the NASDAQ fell 36.81 points, or 1.63%, to 2,217.42.

Bank of America, Citigroup and JPMorgan lost between 2.2% and 2.8% as the White House moved closer to reaching a compromise on the the financial regulatory reform bill.

Morgan Stanley slumped 3.1%.

Apple dipped 0.8% as thousands of people lined up for its iPhone 4, which was released Thursday.

Tech heavyweights Microsoft and IBM lost 1.2% and 1.5%, while Oracle shed 2% ahead of the release of its quarterly report after the close.

Search engines Google and Yahoo! fell 1.4% and 2.6%.

Google won a copyright infringement dispute with Viacom, ruling that Google’s YouTube isn't liable for its users' copyright violations. Viacom was seeking over US$1 billion in damages and said it would appeal.

Viacom shares retreated 2.9%.

Economically sensitive Dow components Alcoa and Caterpillar shed 2.8% and 1.5%.

Energy majors Exxon Mobil and Chevron were among the biggest losers, down 1.7% and 2% respectively.

NYMEX light crude oil for August delivery rose US9c to US$76.44 a barrel.

COMEX gold for August delivery gained US$11.30 to US$1,246.10 an ounce.

European Markets

European stocks closed at a two-week low on concerns related to the financial reform bill set to be released in the US shortly. Ongoing doubts over a global economic recovery also plagued the market.  

The UK benchmark FTSE 100 retreated 78.29, or 1.51% to 5,100.23. The French CAC40 lost 86.43, or 2.37% to 3,555.36, while the German DAX fell 89.04, or 1.44% to 6,115.48.

UK banks Barclays, Lloyds and Royal Bank of Scotland dropped 4.6%, 4.1% and 3.3% respectively.

Societe Generale and BNP Paribas tumbled 4.5% and 5%. Deutsche Bank lost 1.6%.

The cost of protecting Greek government debt against default increased to a record high.

Greece’s Eurobank slumped 5.2%, while in the equally fragile Spain Banco Santander weakened 3.8%.

Miners lost ground as an uncertain outlook for metals demand easily offset the appointment of Julia Gillard as the new Prime Minister of Australia. Ms Gillard’s promotion to the top job created optimism the government and miners will be able to reach a compromise over the Resource Super Profits Tax.

Aussie miners BHP Billiton and Rio Tinto dipped 1.6% and 3.2%.

Xstrata was also down 3.2%.

Beleaguered energy giant BP continued its slide, closing 2.5% in the red. BG Group and Royal Dutch Shell shed 2.7% and 1.7%.

Japanese Markets

Japan’s Nikkei closed flat as gains from real-estate companies were countered by losses from exporters. The index had lost 3% in the previous two sessions.

The Nikkei 225 added 4.64, or 0.05% to 9,928.34.

Automakers Nissan and Toyota weakened 1.2% and 0.8% as the yen strengthened against the greenback.

Sony and Panasonic closed 1.1% and 1% cheaper, while Canon bucked the trend adding 0.4%.

Property developer Sumitomo Realty & Development rallied 2.9% after a drop in bond yields indicated lower loan rates. Mitsui Fudosan Co. and Mitsubishi Estate Co. rose 1.6% and 0.8%.

Financials Mitsubishi UFJ and Mizuho retreated 1.6% and 1.3%.

Hong Kong Markets

The Hang Seng retreated Thursday as a raft of international data, including weak US housing reads, rattled investors. Meanwhile, some analysts in China consider the recent strong lending has increased risk across that sector, hurting shares in many of the banks.

The Hang Seng fell 123.12, or 0.59% to 20,733.49.

Among the banks, heavyweight lender ICBC lost 0.5%, while Bank of China was 0.2% weaker.

HSBC, which makes up around one-sixth of the Hang Seng index, sank 1.6%.

Li & Fung put on 0.3%, while the world’s largest third party shoemaker, Yue Yuen Holdings, added 1.8%.

Property stocks climbed despite the US Federal Reserve kept interest rates on hold again.

China Resources Land added 0.1%, while Guangzhou R&F Properties retreated 2%.

Among the oil stocks, Cnooc and PetroChina retreated 1.9% and 1.1% respectively. 

The local market tracked lower through the afternoon to be in line with their international counterparts, as the enthusiasm for a new Prime Minister wore off. Already some progress towards a resolution of the mining super profits tax has been made with a truce being called between some of the major miners and the government in the advertising war.

The government and the miners also flagged a move towards more open and transparent negotiations.

The Australian dollar surged more than half a cent against the greenback from yesterday’s close.

At the end of the day, the All Ords retreated 5.3 to 4,504.1, while the ASX/200 shed 6.4 to 4,479.7. Around 1.9 billion shares worth around $6.2 billion had changed hands.

Among the big miners, BHP Billiton and Rio Tinto climbed 51c and $1.19 to $39.65 and $71.73 respectively. Fortescue added 11c to $4.54.

Mid-cap miners also rallied, with Iluka rising 11c to $4.80, and Macarthur Coal surging 74c to $12.34.

Overall the Materials and Resources sector gained 1.1%

The Energy sector, which has had a version of a RSPT since the 80’s, was more subdued, down 0.3%.

Woodside lost 9c to $44.56, while Origin tumbled 33c to $15.08, before entering into a trading halt during the match-out.

Riversdale surged 81c to $11.35 after saying it had sold a 40% stake in a Mozambique coal mine to Chinese interests.

The Banks and Financials sector was down 1.2%.

Macquarie shares tumbled $2.02, or 4.7% to $40.65. The investment bank said that some of its businesses remained under pressure in a post-GFC hangover.

The big four banks were all lower through the afternoon trade. NAB and ANZ eased 29c and 5c to $24.38 and $22.83 respectively.

The larger banks, CBA and Westpac retreated 0.8% and 0.2% to $50.82 and $22.12.

The insurers were mixed. QBE drifted 1.3% lower, while AMP put on 1c to $5.49.

The Property Trusts sector tumbled 1.8%.

Heavyweight Westfield eased 14c to $12.54, while Stockland, Dexus and Goodman Group all lost between 2.9% and 3.8%.

Telstra continued its recent rally, putting on 5c to $3.34, helping the broader Telecommunications sector 1.6% above the line.

Among Industrial stocks, Asciano gained 1.2%, while Seven Group added 7c, or 1.2% to $6.05, the day after applying for a $250 million stake in a HK banking IPO.

Air travel stocks were mixed. Qantas put on 1c to $2.36, while MAp Group, the owner of Sydney Airport, shed 13c to $2.84.

Pallet maker Brambles extended recent losses, down another 17c to $5.60, while Leighton rose 8c to $31.19.

The sector eased 0.5% below the line, despite Downer and Transfield surging 5.5% and 5.7% respectively.

The Consumer Discretionary sector advanced 0.1%, with many stocks making modest gains.

Harvey Norman and Billabong were flat, while Crown edged 10c, or 1.3% higher to $8.09.

Media company Fairfax was 1.4% lower.

Among the Consumer Staples stocks, Wesfarmers advanced 46c, or 1.6% to $29.86, while the sector put on 0.8%.

Around the region, the Nikkei 225 rose 4.6 to 9,928.3. The Straits times Index eased 1.3 to 2,869.8. The NZSE50 retreated 4.8 to 3,049.5 and the Hang Seng gained 10.4 points to 2,0867.0

Spot gold was trading at US$1,236.35 per ounce, while the Aussie was buying US$0.874.

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Miners rally on PM change
Investors have reacted warmly to Kevin Rudd’s dumping as Prime Minister, with Australian mining stocks rallying Thursday morning. Former Deputy leader Julia Gillard will replace Mr Rudd in the top job today and as a result has boosted optimism across the markets that the mining sector and the Federal Government will reach a compromise on the proposed Resource Super Profits Tax. 

Macquarie still feeling the pinch
Macquarie Group shares slumped nearly 4% Thursday morning after the investment banking giant said that the current economic environment was hurting parts of its business. The bank, however, said that it was still too early to quantify exactly what effect that would have on the current financial year.

At the close, Macquarie shares were trading down $2.02 to $40.65.

Riversdale to sell 40% stake in project for $US800m
Riversdale Mining said it has signed a Memorandum of Understanding with Wuhan Iron and Steel Corporation and a logistics partnership agreement with the China Communications Construction Company for the development of the Zambeze Coal Project in Mozambique. The company said the MoU would see WISCO acquire 40% of the project for US$800 million to be paid in three tranches.

At the end of the day, Riversdale shares were up 81c to $11.35.  

Goodman Fielder upbeat despite NZ writedown

Goodman Fielder this morning said it was expecting to incur a non-cash writedown of around NZ$16 million ($13 million) on its deferred tax assets following a change to tax regulations by the New Zealand government. However the owner of many major grocery brands, including Wonder White and White Wings, said that the New Zealand tax changes would have positive impact on the company’s bottom line from FY12.

At the bell, Goodman Fielder shares were trading up 2.5c to $1.40.

AGL welcomes RET changes
AGL Energy welcomed legislative changes to the operation of the Renewable Energy Target scheme, saying they would provide greater investment certainty for the renewable industry. The company said under the changes that were passed through the Senate, the RET scheme would be split in two, creating a market for large-scale renewable energy projects, such as wind farms, and another for small-scale technologies including solar PV.

At the finish, AGL Energy shares were unch at $14.71.

Fletcher to incur NZ$30m tax expense
Fletcher Building said it would incur an unusual tax expense of NZ$30m in its FY10 results on the back of significant taxation changes announced by the New Zealand Government. The company said the changes include the elimination of depreciation on buildings for tax purposes, and a reduction in the corporate taxation rate from 30% to 28%, both with effect from 1 July 2011.

At the end of the session, Fletcher Building shares were down 4c to $6.49.

Mining stocks and the Australian dollar both rallied following Kevin Rudd’s dumping as Prime Minister in favour of his former deputy, Julia Gillard. The sudden and surprising coup on the PM was seen by some analysts as giving the government the opportunity to compromise on its opinion poll damaging super profits tax on the miners.

The Australian dollar surged more than half a cent from yesterday’s close, while mining stocks added nearly 2% across the board in morning trade.

At midday, the All Ords gained 17.3 to 4,526.7, while the ASX/200 rose 16.3 to 4,502.4. Around 800 million shares worth around $2.6 billion had changed hands.

Among the big miners, BHP Billiton and Rio Tinto climbed 76c and $1.63 to $39.90 and $72.17 respectively. Fortescue added 12c to $4.55.

Mid-cap miners also rallied Iluka and Macarthur Coal both tacking on between 5% and 6%.

Gold miners also climbed, with only metal recycler Sims Group, down 34c to $18.31, showing any real weakness among commodity stocks.

Overall the Materials and Resources sector gained 1.5%

The Energy sector, which has had a version of a RSPT since the 80’s, was more subdued, adding 0.4%.

Woodside, Origin and Oil Search were all less than 0.4% above the gain line.

Riversdale surged 55c to $11.09 after saying it had sold a 40% stake in a Mozambique coal mine to Chinese interests.

The Banks and Financials sector was down 0.4%.

Macquarie shares tumbled $1.75, or 4.1% to $40.92. The investment bank said that some of its businesses remained under pressure in a post-GFC hangover.

The big four banks were mixed. NAB and ANZ put on 13c and 16c to $24.80 and $23.04 respectively.

The larger banks, CBA and Westpac retreated 0.2% and 0.7% to $51.11 and $22.41.

The insurers were mixed. QBE drifted just a few cents lower, while AMP put on 8c to $5.56.

The markets major loser was the Property Trusts sector, which tumbled 1.7%.

Heavyweight Westfield eased 6c to $12.62, while Stockland, Dexus and Goodman Group all lost between 3.6% and 4.2%.

Telstra continued its recent rally, putting on 5c to $3.34, helping the broader Telecommunications sector 1.5% above the line.

Among Industrial stocks, Asciano gained 1.2%.

Seven Group added 16c, or 2.7% to $6.14, the day after applying for a $250 million stake in a HK banking IPO.

Air travel stocks were mixed. Qantas put on 3c to $2.38, while MAp Group, the owners of Sydney Airport, shed 11c to $2.86.

Pallet maker Brambles extended recent losses, down another 2c to $5.75, while Leighton rose 17c to $31.28.

The sector eased 0.1% below the line.

The Consumer Discretionary sector advanced 0.4%, with many stocks making modest gains.

Harvey Norman and Billabong added around 1% each, while Crown edged 8c, or 1% higher to $8.07.

Media company Fairfax was 1.1% higher.

Among the Consumer Staples stocks, Wesfarmers advanced 41c, or 1.4% to $29.81, while the sector advanced 0.6%.

Around the region, the Nikkei 225 rose 15.1 to 9,938.8. The Straits times Index eased just 0.1 points to 2,871.0. The NZSE50 retreated 2.6 to 3,051.7.

Spot gold was trading at US$1,235.42 per ounce, while the Aussie was buying US$0.875.

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Miners rally on PM change
Investors have reacted warmly to Kevin Rudd’s dumping as Prime Minister, with Australian mining stocks rallying Thursday morning. Former Deputy leader Julia Gillard will replace Mr Rudd in the top job today and as a result has boosted optimism across the markets that the mining sector and the Federal Government will reach a compromise on the proposed Resource Super Profits Tax. 

Macquarie still feeling the pinch
Macquarie Group shares slumped nearly 4% Thursday morning after the investment banking giant said that the current economic environment was hurting parts of its business. The bank, however, said that it was still too early to quantify exactly what effect that would have on the current financial year.

At midday, Macquarie shares were trading down $1.82 to $40.85.

Riversdale to sell 40% stake in project for $US800m
Riversdale Mining said it has signed a Memorandum of Understanding with Wuhan Iron and Steel Corporation and a logistics partnership agreement with the China Communications Construction Company for the development of the Zambeze Coal Project in Mozambique. The company said the MoU would see WISCO acquire 40% of the project for US$800 million to be paid in three tranches.

At lunch, Riversdale shares were up 50c to $11.04.  

Goodman Fielder upbeat despite NZ writedown

Goodman Fielder this morning said it was expecting to incur a non-cash writedown of around NZ$16 million ($13 million) on its deferred tax assets following a change to tax regulations by the New Zealand government. However the owner of many major grocery brands, including Wonder White and White Wings, said that the New Zealand tax changes would have positive impact on the company’s bottom line from FY12.

At noon, Goodman Fielder shares were trading up 2.5c to $1.40.

AGL welcomes RET changes
AGL Energy welcomed legislative changes to the operation of the Renewable Energy Target scheme, saying they would provide greater investment certainty for the renewable industry. The company said under the changes that were passed through the Senate, the RET scheme would be split in two, creating a market for large-scale renewable energy projects, such as wind farms, and another for small-scale technologies including solar PV.

At lunchtime, AGL Energy shares were up 21c to $14.92.

Wall Street recovered from an early sell-off Wednesday, however still finished the day mixed. The Federal Reserve’s decision to keep interest rates near zero was countered by a glum read on new home sales.

The Fed, in explaining its decision to keep interest rates steady, said that sustained weakness in several key economic indicators, including jobs, and European debt concerns were hindering the broader recovery.

Meanwhile new home sales tumbled 32% in May to a revised annual rate of 300,000 the lowest on record.

The Dow Jones rose 4.92 points, or 0.05%, to 10,298.44, the S&P 500 lost 3.27 points, or 0.3%, to 1,092.04 and the NASDAQ index fell 7.57 points, or 0.33%, to 2,254.33.

Housing stocks soared despite the disappointing housing data. D.R. Horton, Pulte Group and KB Home rallied 2.5%, 2.1% and 4.4% respectively.

It was poor day for tech stocks. Software maker Adobe tumbled 7.3% despite handily beating the street’s earnings expectations. However investors remained concerned about the direction of the company.

Apple and Microsoft were down 1.1% and 1.7% respectively.

Among the banking and financial stocks, Citigroup retreated 1.3%, while JPMorgan gained 1.5%.

Elsewhere cigarette maker, Philip Morris rallied 3.3% after receiving a boost to sales, particularly from Asia.

NYMEX light crude oil for August delivery fell US$1.50 to US$76.35 a barrel.

The slump in the price of crude hit oil stocks. Chevron and Exxon Mobil gave up 2.4% and 1.4% respectively.

However, BP ADR’s were virtually unchanged.

COMEX gold for August delivery dropped $5.30 to $1,234.80 an ounce.

European Markets

European stocks extended losses into a second session, following recent strong gains. Wednesday’s losses were prompted by the negative housing data out of the US.

The UK benchmark FTSE 100 retreated 68.46, or 1.30% to 5,178.52. The French CAC40 lost 63.53, or 1.71% to 3,641.79, while the German DAX gave up 64.52, or 1.03% to 6,204.52.

Among the UK banks, Barclays retreated 3.2%, while RBS and Lloyds gave up 0.8% and 0.5% respectively.

On the continent, BNP Paribas lost 2.2%, while Deutsche Bank was 1.5% cheaper.

Homebuilding stocks, CRH tumbled 4.1%, while cement maker HeidelbergCement AG gave up 4.7%.

Elsewhere, among the miners, BHP Billiton and Rio Tinto lost 1.8% and 1.6%. Anglo American lost 2.3%.

Among oil plays, BP edged 0.2% lower, while Royal Dutch Shell gave up 2%.

Japanese Markets

Japan’s Nikkei witnessed its biggest fall in over two weeks as a disappointing read on housing in the US deflated optimism of an economic recovery in that region. A strengthening yen hurt exporters, while commodity related stocks lost the most ground. 

The Nikkei 225 fell 189.19, or 1.87% to 9,923.70.

Automakers Toyota and Nissan shed 1.7% and 1.8% as the yen strengthened against both the euro and greenback.

Canon fell 2.6%, while Nintendo dropped 3.6%.

Heavyweight financials Sumitomo Mitsui and Mitsubishi UFJ weakened 0.8% and 0.7%. Mizuho rose 0.6%.

A drop in commodity prices sent trading company Mitsubishi Corp.’s shares 1.5% lower.

Oil and gas explorer Inpex Corp. and Mitsui Mining & Smelting Co lost 2.9% and 2.6% respectively.

Shipping companies Nippon Yusen K.K. and Mitsui O.S.K. Lines retreated 3.6% and 2.7% after the Baltic dry index weakened for an 18th consecutive session. 

Hong Kong Markets

Hong Kong reversed early losses, driven higher by record power consumption. Housing stocks however capped gains.

The Hang Seng put on 37.53, or 0.18% to 20,856.61.

Among the banks, ICBC lost 0.5% and Bank of China was unchanged. HSBC gained 0.9%.

Li & Fung put on 1.2%, while mobile phone maker, Foxconn lost 0.5%.

Oil producers, PetroChina and Cnooc lost 0.7% and 0.1% respectively.

Shares tracked lower through the afternoon to eventually finish under the 4,500 barrier. While losses were widespread, Telstra once again showed strength following the weekend’s agreement on an $11 billion deal with the government for the NBN.

At the end of the day, the All Ords lost 71.9 to 4,509.4, while the ASX/200 fell 72.2 to 4,486.1. Around 1.9 billion shares worth around $4.5 billion had changed hands.

The Banks and Financials sector retreated 2.1%, with CBA dropping $1.33, or 2.5% to $51.21.

Westpac took the most points off the broader indices, down 3.3% to $22.56, while ANZ gave up 1.5% and NAB was down 1.6%.

Perpetual slid 50c to $29.90 as the diversified financial announced this morning that managing director, David Deverall, would step down from his position.

Investment bank Macquarie lost 3.1% to $42.67.

The five major insurers were between 1.1% and 1.7% in the red.

After outperforming the market yesterday, the Property Trusts sector was down 1.8%.

Looking at the two majors, Westfield dipped 1.5% to $12.68, while Stockland fell 12c, or 3% to $3.93 after UBS downgraded its’ rating on the stock to ‘sell’. 

The Materials and Resources sector was also weaker, down 1.5%.

BHP Billiton and Rio Tinto weakened 1.3% and 2.2% to $39.14 and $70.54, while mineral sands explorer Iluka fell 3.7% in a particularly disappointing day for the smaller to mid-capped stocks.

The sector had retreated 1% by midday after a mixed night for metals prices in London.

Investors found a safe haven in gold stocks despite the price of the precious metal only increasing 0.1% in New York.

Newcrest and Lihir added 0.8% and 0.5% to $35.38 and $4.33. The only other major company in the sector to make ground was Amcor, which rallied 8c to $6.47.

Energy stocks tracked the price of crude lower.

Woodside lost 65c, or 1.4% to $44.65. The third largest LNG producer in the world said industrial action would not affect its plan to produce gas from the company’s Pluto LNG Project by March 2011. The company warned, however, that any ongoing industrial action could impact the project’s schedule and push out this production date.

Santos and Oil Search shed 3% and 2.2% as the sector weakened 2.1%.

Their peers in the US and Europe were among the most heavily sold overnight.

Coal miner Whitehaven rallied 4c, or 0.8% to $5.08.

Leighton dipped 93c to $31.11 as the company rejected claims it could be forced to write off part of its' business in the Middle East.

Transport and logistics company Toll, Asciano and Qantas lost between 2.1% and 2.4%, while online jobs website Seek fell 2.9% to $7.44.

Seven Group edged 18c lower to $5.98. The company confirmed it has applied for $US250 million worth of shares in Agricultural Bank of China’s initial public offering.

The Industrials sector dropped 1.6%, while the Consumer Discretionary sector retreated 1.4%.

Surfwear retailer Billabong tumbled 3% to $8.78, while media company Newscorp dipped 34c to $17.66.

A day after ASIC revealed it was the most shorted stock on the market, Fairfax shares were down 2.5c to $1.41.

The defensive Consumer Staples sector retreated 0.2%, while Telecommunications was the only sector above the line, rising 1%.

Beverage maker Coca-Cola Amatil gained 0.9% to $11.73. Telstra put on 3c to $3.29.

Around the region, the Nikkei 225 retreated 180.6 to 9,932.3. The Straits times Index gave up 19.5 to 2,852.8 and the Hang Seng sank 84.4 to 20,734.7.

Spot gold was trading at US$1,238.70 per ounce, while the Aussie was buying US$0.8685.

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Seven now a cornerstone investor in AgBank of China
Seven Group Holdings has become a cornerstone investor in the initial public offering and listing of Agricultural Bank of China. Seven announced the signing of a Memorandum of Understanding (“MoU”) and an Investment Agreement with ABC, whereby Seven would invest $US250 million in China’s largest bank by retail customers.

At the end of the day, Seven shares were down 18c to $5.98.

Woodside Pluto LNG production slated for March 2011
Woodside Petroleum said that industrial action would not affect its plan to produce gas from the company’s Pluto LNG Project by March 2011. The company warned, however, that any ongoing industrial action could impact the project’s schedule and push out this production date.

At the bell, Woodside shares were down 65c to $44.65.

Perpetual MD to step down
Perpetual said this morning that managing director, David Deverall, would step down from his post. The diversified financial group said Mr Deverall would stay on as managing director until a replacement was found, or 31 March 2011, whichever came first.

At the close, Perpetual shares were trading down 50c at $29.90.

Aussie shares followed a weak lead from Wall Street overnight after a disappointing read on housing data  saw the Dow finish 1.4% lower. Locally, losses were broad based in morning trade, with only the gold miners showing any strength.

At midday, the All Ords lost 51.6 to 4,529.7, while the ASX/200 fell 50.8 to 4,507.5. Around 790 million shares worth around $1.7 billion had changed hands.

CBA took the most points off the broader indices, with a $1.17, or 2.2% drop to $51.37.

Westpac shed 2% to $22.86, while ANZ and NAB were down 1.4% each.

The Banks and Financials sector retreated 1.6%.

Perpetual slid 7c to $30.33 as the diversified financial announced this morning that managing director, David Deverall, would step down from his position.

Investment bank Macquarie lost 2.2% to $43.07.

Insurers AMP, AXA Asia Pacific, QBE and Suncorp-Metway were between 1% and 1.2% in the red.

After outperforming the market yesterday, the Property Trusts sector was down 1.2%.

Looking at the two majors, Westfield dipped 1.1% to $12.73, while Stockland fell 10c, or 2.5% to $3.95 after UBS downgraded its’ rating on the stock to ‘sell’. 

The story wasn’t much better in the Materials and Resources sector.

BHP Billiton and Rio Tinto weakened 1.1% and 1.6% to $39.23 and $70.95, while mineral sands explorer Iluka fell 3.7% in a particularly disappointing morning for the smaller to mid-capped stocks.

The sector had retreated 1% by midday after a mixed night for metals prices in London.

Investors found a safe haven in gold stocks despite the price of the precious metal only increasing 0.1% in New York.

Newcrest and Lihir added 1.3% and 1.4% to $35.54 and $4.37.

Energy stocks tracked the price of crude lower.

Woodside lost 58c, or 1.3% to $44.72. The third largest LNG producer in the world said industrial action would not affect its plan to produce gas from the company’s Pluto LNG Project by March 2011. The company warned, however, that any ongoing industrial action could impact the project’s schedule and push out this production date.

Santos and Oil Search shed 2.4% and 1.9% as the sector weakened 1.7%.

Their peers in the US and Europe were among the most heavily sold overnight.

Leighton dipped 57c to $31.47 as the company rejected claims it could be forced to write off part of its' business in the Middle East.

Transport and logistics company Toll lost 2.1% to $5.67, while online jobs website Seek fell 3.1% to $7.42.

Seven Group edged 2c lower to $6.14. The company confirmed it has applied for $US250 million worth of shares in Agricultural Bank of China’s initial public offering.

MAp bucked the trend to be up 3c to $3.02 as the Industrials sector dropped 1.1%.

Elsewhere, the Consumer Discretionary sector retreated 0.9%.

Surfwear retailer Billabong tumbled 2.8% to $8.80, while media company Newscorp dipped 30c to $17.70.

A day after ASIC revealed it was the most shorted stock on the market, Fairfax shares were down 1.5c to $1.42.

The defensive Consumer Staples and Telecommunications sectors advanced 0.1% and 0.4%.

Beverage maker Coca-Cola Amatil gained 1.4% to $11.78, while Telstra put on 2c to $3.28.

Telecom rose 2.3% to $1.575.

Around the region, the Nikkei 225 retreated 187.2 to 9,925.7, while the NZSE50 edged 0.1 higher to 3,054.3. The Straits times Index gave up 20.2 to 2,852.1.

Spot gold was trading at US$1,240.45 per ounce, while the Aussie was buying US$0.8718.

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Woodside Pluto LNG production slated for March 2011
Woodside Petroleum said that industrial action would not affect its plan to produce gas from the company’s Pluto LNG Project by March 2011. The company warned, however, that any ongoing industrial action could impact the project’s schedule and push out this production date.

At noon, Woodside shares were down 53c to $44.77.

Seven applies for stake in Agricultural Bank of China
Seven Group Holdings confirmed it has applied for shares in Agricultural Bank of China’s initial public offering. The company said the maximum value applied for is US$250 million.

Half way through the day, Seven shares were down 2c to $6.14.

Perpetual MD to step down
Perpetual said this morning that managing director, David Deverall, would step down from his post. The diversified financial group said Mr Deverall would stay on as managing director until a replacement was found, or 31 March 2011, whichever came first.

At midday, Perpetual shares were trading down 11c at $30.29.

 

 

Wall Street tumbled Tuesday afternoon following the release of disappointing home sales data and on ongoing concerns over the health of the global economy. The market opened higher before a broad based sell-off sent stocks into negative territory.

Central bank officials are set to meet Tuesday and Wednesday with an announcement expected regarding interest rates and the economy at the end of the meeting. The fed funds rate is expected remain steady at near zero.

In economic news, existing home sales unexpectedly fell from a 5.77 million unit rate in April to a seasonally adjusted annual unit rate of 5.66 million in May. Forecasts were for an increase to 6.1 million units.

The Dow Jones dropped 148.89 points, or 1.43%, to 10,293.52, the S&P's 500 shed 17.89 points, or 1.61%, to 1,095.31 and the NASDAQ slid 27.29 points, or 1.19%, to 2,261.80.

All of the major financials closed lower. Wells Fargo, JPMorgan and Bank of America fell 1.7%, 1.4% and 1.35 respectively.

Goldman Sachs and Citigroup shed 2.1% and 2%.

Exxon Mobil, Chevron and ConocoPhillips lost between 1.9% and 2.4% as NYMEX light crude oil for July delivery fell US61 cents to settle at US$77.21 a barrel on the expiration date.

A judge lifted a six-month ban on deep water drilling, which was prompted by the oil disaster in the Gulf of Mexico, however the Obama administration vowed to appeal the lifting of the ban.

BP ADR’s slid 2.1%, while oil drillers Transocean and Diamond Offshore Drilling lost 2.6% and 2.9%.

Apple put on 1.4% after the company announced it sold 3 million iPads in less than three months.

Hewlett-Packard fell 1.6%, while IBM and Microsoft were 1% and 0.7% cheaper.

Homebuilding companies D.R. Horton and PulteGroup shed 3% and 3.2% on the back of the housing data.

Blue chips Alcoa and Caterpillar fell 3.7% and 3%.

COMEX gold for August delivery rose US10c to US$1,240.80 an ounce.

European Markets

European stocks ended a two-week long advance on concerns the rally outpaced earnings prospects and as investors reassessed China’s move to revalue to the yaun. Energy stocks led the slide as oil continues to spill from BP’s Deepwater Horizon rig in the Gulf of Mexico.

The UK benchmark FTSE 100 lost 52.13, or 0.98% to 5,246.98. The French CAC40 shed 30.83, or 0.83% to 3,705.32, while Germany’s DAX slid 23.93, or 0.38% to 6,269.04.

BP slumped 4.4% to its lowest close in 13-years as the oil giants CEO Tony Hayward avoided making an oil conference speech. There are also concerns as the first storm of the hurricane season may enter the Gulf of Mexico as early as next week.

BG Group dropped 3.6% following a broker downgrade, while total shed 1.6% as Goldman Sachs cut its target price on the stock.

Aussie miners BHP Billiton and Rio Tinto lost 2.1% and 1.3% on a mixed day for the metals.

BNP Paribas dipped 1.6% after Fitch cut its credit rating on the stock. Societe Generale and Credit Agricole slumped 4% and 4.7%.

Deutsche Bank shed 1%.

UK banks Lloyds and Royal Bank of Scotland gained 4.1% and 0.7% after a levy on banks was announced in the budget.

Barclays, however, weakened 2%.

Japanese Markets

Profit taking saw Japan’s Nikkei close lower Tuesday after the previous session’s bounce. Credit rating and economic growth downgrades in Europe played a part in the sell-off.

The Nikkei 225 lost 125.12, or 1.22% to 10,112.89.

Canon shed 2.7% as the euro weakened against the yen and the greenback. The company gets over 30% of its revenue from Europe.

Sony and Panasonic fell 3.2% and 1.6%, while Nintendo retreated 3.4%.

Fanuc fell off its two-month high to be down 3.3%.

Trading house Mitsui & Co. dropped 2.9% on the back of a drop in commodity prices.

Oil and gas company Inpex Corp. slid 1.1%.  

On a positive note, financials Mitsubishi UFJ and Sumitomo Mitsui added 0.7% each.

Hong Kong Markets

The Hang Seng retreated for the first time in ten days Tuesday. The retreat was spurred by increasing pessimism that Europe’s debt crisis is abating, while concerns also resurfaced the Chinese government was aiming to restrict spending.

The Hang Seng lost 93.10, or 0.45% to 20,819.08.

Many of the banks drifted lower, including heavyweight lender ICBC lost 0.7%, while Bank of China was 0.2% weaker.

HSBC was 1.2% lower to be one of the worst performers in the sector.

Mobile phone maker, Foxconn lost 3%, while clothing maker Li & Fung advanced 1.6%. European focused clothing brand, Esprit slumped 3.4%.

Profit taking hit the property stocks, with state controlled developers China Overseas Land & Investment and China Resources Land slipped 1.7% and 2.1% respectively.

The sector is also set to be hit by decreasing property prices and credit tightening measures implemented by the government take effect.

Off-shore oil producer Cnooc retreated 0.3%, while PetroChina weakened 0.7%.

The Australian market closed 1.2% lower Tuesday as investors grabbed yesterday’s profits and enthusiasm over the revalued Chinese yuan cooled. Banks and mid-cap miners were heavily sold, while property trusts was the only sector to show any strength.

At the bell, the All Ords fell 51.4 to 4,581.3, while the ASX/200 lost 54.3 to 4,558.3. Around 1.9 billion shares worth around $5.4 billion had changed hands.

Telstra, which rallied strongly yesterday following the securing of an $11 billion NBN deal with the Australian government, lost 8c to $3.26 as investors booked profits. The broader Telecommunications sector was down 2.3%.

Elsewhere, BHP Billiton and Rio Tinto shed 25c and 23c to $39.66 and $72.11 respectively.

However, that was considerably more subdued than their London listings, which were around 5% higher. In Australia the companies said they had agreed to up their royalty payments to the West Australian government.

Gold stocks were weaker, with Lihir and Newcrest down 2% and 1.8% respectively.

Fortescue lost 7c to $4.50, while Macarthur Coal was down 51c to $12.25.

Packaging company Amcor dipped 2.7% to $6.39.

Chemical makers Nufarm and Incitec Pivot shed 5% and 2.9% respectively.

The broader Materials and Resources sector was down 1.1%.

The Energy sector finished 1.4% lower. 

Origin, Santos and Oil Search weakened 1.1%, 2.8% and 1.3% respectively.

Losses were somewhat capped by the coal miners, with New Hope and Coal & Allied adding 1.3% and 0.8% respectively.

Woodside, the sector’s largest stock, slid 35c to $45.30.

The big four banks retreated. NAB and CBA were 1.2% and 1.4% in the red, while ANZ lost 37c to be at $23.22

Westpac gave up 52c, or 2.2% to $23.32, while investment bank Macquarie lost 87c, or 1.9% to $44.05.

The insurers were mainly lower. AMP retreated 11c to $5.54, while QBE put on 5c to $19.01.

The Banks and Financials sector was 1.2% weaker.

The Property Trusts sector outperformed the market, taking positive cues from international peers who benefited from the revalued yuan. It rose 0.5%

Westfield added 10c to $12.87. GPT and Goodman rose 1% and 1.4%.

The Industrials sector was 1.4% lower.

Among transport and logistics stocks, Toll lost 17c, or 2.9% to $5.79 and Qantas fell 2% to $2.40.

Brambles continued to trade lower, down 9c to $5.80, while Leighton weakened 1.3%, or 42c to $32.04 as it maintained its full-year guidance.

Transfield Services slumped 16c to $3.20, despite announcing up to $200 million in new work.

Consumer Discretionary stocks, particularly the retailers, were 1.4% weaker, with the cost of goods expected to increase for Aussie companies as the Chinese yuan revalues.

JB Hi-Fi and Harvey Norman retreated 73c and 10c to $19.65 and $3.45 respectively. Billabong lost 33c to $9.05.

Pacific Brands bucked a broader trend, adding 2c to 98c.

Gaming machines maker Aristocrat lost 10c to $3.86 after a broker downgrade this morning.

Among the media plays, Newscorp retreated 29c to $18.00.

In the Consumer Staples sector, the major mover was Elders, which tumbled 46.3% after saying it was expecting a loss, from a previously forecast profit of $55 million.

The slump from Elders only had a small impact on the broader sector however, which was down 1%.

Wesfarmers, Coca-Cola and Foster's were down between 1% and 1.8%.

Around the region, the Nikkei 225 retreated 125.1 to 10,112.9, while the NZSE50 slid 14.1 to 3,054.2. The Straits times Index gave up 13.1 to 2,872.6. The Hang Seng gained 15.9 to 20,928.0.

Spot gold was trading at US$1,237.45 per ounce, while the Aussie was buying US$0.8766.

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Elders faces grim future
Elders shares tumbled over 40% Tuesday morning after the beleaguered rural services company downgraded its full-year profit guidance from a $55m profit to a loss of between $8m and $14m. The company said the collapse in earnings was due to a slump in revenue as farmers moved to generic, cheaper brands, compounded by the previous downgrade to MIS sales.

At the end of the day, Elders shares were down 38c to 44c.

BHP and Rio agree to higher iron ore royalties.
BHP Billiton and Rio Tinto have reached a royalty agreement with the Western Australian government to amend iron ore rates payable to the State effective 1 July 2010. The two mining giants have agreed royalty rates would increase from 3.75% of sales revenue to 5.625% for Fines and from 3.25% to 5.0% for Beneficiated Ore.

By the finish, BHP Billiton shares were down 25c to $39.66, while Rio Tinto shares were up 23c to $72.11.

Transfield picks up $200m in new work
Transfield Services updated the market this morning, saying it had picked up more than $200m in new work across its international businesses. Some of the work has come from the Gulf of Mexico oil spill disaster, with US subsidiary TIMEC providing specialist services to work on oil-spill clean-up activities in the gulf.

At the close, Transfield shares were down 16c to $3.28.

GUD completes $40m placement
GUD Holdings announced the successful completion of its $40m fully underwritten Institutional Placement as it prepares to fund the proposed acquisition of Dexion. The company said the placement was oversubscribed with demand from both existing and new Australian and international institutional investors.

By the end of the day, GUD shares were down 6c to $8.59.

Aussie shares were down Tuesday morning, with the market hit by profit-taking following strong gains yesterday, combined with cooling enthusiasm over the revalued Chinese yuan and a soft lead from Wall Street. The mid-cap miners were the weakest, while the banks also trended lower.

At lunch, the All Ords lost 16.9 to 4,615.8, while the ASX/200 dipped 16.4 to 4,596.2. Around 970 million shares worth around $2.3 billion had changed hands.

Telstra, which rallied strongly yesterday following the securing of an $11 billion NBN deal with the Australian government, lost 4c to $3.30 as investors booked profits. The broader Telecommunications sector was down 1.2%.

Elsewhere, BHP Billiton and Rio Tinto added just 5c and 12c to $39.96 and $72.46 respectively.

However, that was considerably more subdued than their London listings, which were around 5% higher, however in Australia the companies said they had agreed to up their royalty payments to the West Australian government.

Gold stocks were weaker, with Lihir Gold and Newcrest Mining down 1.6% and 1.8% respectively.

Fortescue lost 4c to $4.53, while Macarthur Coal was down 18c to $12.58. OZ Minerals eased 2c lower to $1.05.

Mirabela Nickel slumped 9c to $2.24.

Elsewhere, chemical makers Nufarm and Incitec Pivot shed 3.5% and 3.2% respectively.

The broader Materials and Resources sector was down 0.3%.

The Energy sector was more mixed and was down 0.7% through to lunch.

Origin, Santos and Oil Search weakened 1.1%, 2.1% and 0.8% respectively.

Losses were capped by the coal miners, with New Hope and Whitehaven adding 1.1% and 0.8% respectively.

Woodside, the sector’s largest stock, was barely moved.

The big four banks were marginally lower. NAB and ANZ were just a few cents below the line, while Westpac lost 17c to be at $23.67

CBA gave up 27c, or 0.5% to $53.01, while investment bank Macquarie lost 56c, or 1.2% to $44.36.

The insurers were mixed. AMP retreated 6c to $5.59, while QBE put on 11c to $19.07.

Elsewhere, Challenger Financial Services Group jumped 10c to $3.58 as it continues its share buy-back program.

The Banks and Financials sector was 0.2% weaker.

The Property Trusts sector outperformed the market, taking positive cues from international peers who benefited from the revalued yuan. It rose 1%

Westfield added 17c to $12.94. GPT, Mirvac and Stockland rose 1.4%, 1.1% and 0.7% respectively.

The Industrials sector was 0.7% lower.

Among transport and logistics stocks, Asciano gained 0.6% to $1.70, while Toll lost 13c, or 2.2% to $5.83.

Brambles continued to trade lower, down 8c to $5.81.

Engineering firm UGL lost 17c to $13.82.

Transfield Services retreated 9c to $3.27, despite announcing up to $200 million in new work.

Mining support companies Monadelphous and Boart Longyear were between 1.1% and 1.3% lower.

Consumer Discretionary stocks, particularly the retailers, were 0.9% weaker, with the cost of goods expected to increase for Aussie companies as the Chinese yuan revalues.

JB Hi-Fi and Harvey Norman retreated 68c and 6c to $19.70 and $3.49 respectively. Billabong lost 21c to $9.17.

Myer bucked a broader trend, adding 6c to $3.31.

Gaming machines maker Aristocrat lost 10c to $3.86 after a broker downgrade this morning.

Among the media plays, Newscorp retreated 34c to $17.95.

In the Consumer Staples sector, the major mover was Elders, which tumbled 41.5% after saying it was expecting a loss, from a previously forecast profit of $55 million.

The slump from Elders only had a small impact on the broader sector however, which was down 0.5%.

Wesfarmers, Coca-Cola and Foster's were down between 0.7% and 0.9%.

Around the region, the Nikkei 225 retreated 54.9 to 10,183.1, while the NZSE50 sank 11.8 to 3,056.5. The Straits times Index gave up 2.2 to 2,883.4.

Spot gold was trading at US$1,239.20 per ounce, while the Aussie was buying US$0.8798.

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Elders faces grim future
Elders shares tumbled over 40% Tuesday morning after the beleaguered rural services company downgraded its full-year profit guidance from a $55m profit to a loss of between $8m and $14m. The company said the collapse in earnings was due to a slump in revenue as farmers moved to generic, cheaper brands, compounded by the previous downgrade to MIS sales.

At noon, Elders shares were down 33c to 49c.

BHP and Rio agree to higher iron ore royalties.
BHP Billiton and Rio Tinto have reached a royalty agreement with the Western Australian government to amend iron ore rates payable to the State effective 1 July 2010. The two mining giants have agreed royalty rates would increase from 3.75% of sales revenue to 5.625% for Fines and from 3.25% to 5.0% for Beneficiated Ore.

At lunch, BHP Billiton shares were up 17c to $40.08, while Rio Tinto shares were up 43c to $72.77.

Transfield picks up $200m in new work
Transfield Services updated the market this morning, saying it had picked up more than $200m in new work across its international businesses. Some of the work has come from the Gulf of Mexico oil spill disaster, with US subsidiary TIMEC providing specialist services to work on oil-spill clean-up activities in the gulf.

At midday, Transfield shares were down 8c to $3.28.

GUD completes $40m placement
GUD Holdings announced the successful completion of its $40m fully underwritten Institutional Placement as it prepares to fund the proposed acquisition of Dexion. The company said the placement was oversubscribed with demand from both existing and new Australian and international institutional investors.

At lunchtime, GUD shares were down 15c to $8.50