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The proposed revaluation of the Chinese yuan, which sustained an international market rally Monday, ran out of steam for Wall Street, with markets in the US drifting lower in the last hour of trade. Optimism about an increased demand for US exports was countered by a concern costs for imports would also increase.

The Dow Jones lost 8.23 points, or 0.08%, to 10,442.41, the S&P 500 slid 4.31 points, or 0.39%, to 1,113.20 and the NASDAQ fell 20.71 points, or 0.90%, to 2,289.09.

The banks and financials sector was little changed. Citigroup was 0.3% dearer, while Goldman Sachs was down by a similar amount.

The tech stocks were particularly weak. Blackberry maker, Research in Motion, retreated 2.9% ahead of pessimism over its quarterly results, due out Thursday.

Amazon was 2.6% lower as price wars over e-readers heat up.

Microsoft and Apple retreated 1.9% and 1.4% respectively. Meanwhile Google and Yahoo! were both more than 2% cheaper.

Retailers were also weaker on the prospect of higher costing imports from China. Macy’s tumbled 3.4%, while Wal-Mart and Saks gave up 1% and 1.4% respectively.

NYMEX light crude oil for July delivery advanced US64c to settle at US$77.82 a barrel.

Demand for commodities was expected to be one of the major effects of an increased Chinese yuan.

Alcoa surged 5.5%, while Century Aluminum Company climbed 8%.

Among oil plays, Exxon Mobil and Chevron edged just above the previous close.

COMEX gold for August delivery fell US$17.60 to US$1,240.70 an ounce.

European Markets

European stocks extended gains into a ninth day, their best run in 11 months. The rally was driven by Chinese appreciation of the yuan, which was expected to increase the attractiveness of European exports. 

The UK benchmark FTSE 100 put on 48.27, or 0.92% to 5,299.11. The French CAC40 rallied 48.94, or 1.33% to 3,736.15, while Germany’s DAX climbed 75.99 or 1.22% to 6,292.97.

UK bank Barclays was 1.5% higher, while HSBC and Lloyds both rallied 1.7%.

Royal Bank of Scotland, bucked the trend, shedding 0.5%.

Watch maker Swatch, which sells heavily in China, surged 5.4% on the Chinese currency move.

Meanwhile, European auto stocks, which are becoming increasingly fashionable in China, also spiked.

Daimler and BMW gained 3.2% and 2.7% respectively. Porsche jumped 5.5%.

Commodity stocks globally were particularly strong, with a surge in metal prices overnight in London helping commodity stocks. BHP Billiton and Rio Tinto spiked 4.7% and 4.9% respectively.

Anglo American climbed 3.5%.

Among oil stocks, Royal Dutch Shell added 1.4%, while the beleaguered BP lost another 2.2%. Repsol was 1.4% above the line.

Japanese Markets

Japan’s Nikkei reached a one-month high as China indicated it would put an end to the yaun’s fixed rate against the greenback. This, in turn, increased speculation demand in China would grow.

The Nikkei 225 climbed 242.99, or 2.43% to 10,238.01.

Heavyweight financials Mitsubishi UFJ and Mizuho added 1.9% and 1.3%.

Hitachi Construction Machinery spiked 6.7%. The company counts China as its largest market.

Komatsu rose 4.6%, while shippers Mitsui O.S.K. Lines and Nippon Yusen K.K. gained 4.5% and 3.1%.

Industrial robot maker Fanuc rallied 5.5%.

Trading houses Mitsubishi Corp. and Mitsui & Co. jumped 6.6% and 5.9% after a rise in commodity prices. There is also speculation China’s demand for resources will increase.

Automakers Nissan and Toyota rose 2.8% and 1.7%, while digital camera maker Canon gained 2.8%.

Hong Kong Markets

Hong Kong stocks matched European markets, with a ninth straight day of gains. Property stocks surged after the Chinese revaluation of the yuan made property stocks more attractive to investors in China.

The Hang Seng put on 625.47, or 3.08% to 20,912.18.

Bank of China spiked 2.5%, while ICBC was 3.3% above the line.

China Merchants Bank added 5.6% and HSBC put on 2.1%.

Among property stocks, state-controlled China Resources Land rallied 5.4%.

Guangzhou R&F Properties surged 7.3%. China Overseas Land & Development put on 5.2%.

Exporters to the US were mixed, with products from those companies set to be more expensive.

Li & Fung was down 1.4%, however Foxconn was 5.7% higher. 

The proposed revaluation of the Chinese yuan, which sustained an international market rally Monday, ran out of steam for Wall Street, with markets in the US drifting lower in the last hour of trade. Optimism about an increased demand for US exports was countered by a concern costs for imports would also increase.

The Dow Jones lost 8.23 points, or 0.08%, to 10,442.41, the S&P 500 slid 4.31 points, or 0.39%, to 1,113.20 and the NASDAQ fell 20.71 points, or 0.90%, to 2,289.09.

The banks and financials sector was little changed. Citigroup was 0.3% dearer, while Goldman Sachs was down by a similar amount.

The tech stocks were particularly weak. Blackberry maker, Research in Motion, retreated 2.9% ahead of pessimism over its quarterly results, due out Thursday.

Amazon was 2.6% lower as price wars over e-readers heat up.

Microsoft and Apple retreated 1.9% and 1.4% respectively. Meanwhile Google and Yahoo! were both more than 2% cheaper.

Retailers were also weaker on the prospect of higher costing imports from China. Macy’s tumbled 3.4%, while Wal-Mart and Saks gave up 1% and 1.4% respectively.

NYMEX light crude oil for July delivery advanced US64c to settle at US$77.82 a barrel.

Demand for commodities was expected to be one of the major effects of an increased Chinese yuan.

Alcoa surged 5.5%, while Century Aluminum Company climbed 8%.

Among oil plays, Exxon Mobil and Chevron edged just above the previous close.

COMEX gold for August delivery fell US$17.60 to US$1,240.70 an ounce.

European Markets

European stocks extended gains into a ninth day, their best run in 11 months. The rally was driven by Chinese appreciation of the yuan, which was expected to increase the attractiveness of European exports. 

The UK benchmark FTSE 100 put on 48.27, or 0.92% to 5,299.11. The French CAC40 rallied 48.94, or 1.33% to 3,736.15, while Germany’s DAX climbed 75.99 or 1.22% to 6,292.97.

UK bank Barclays was 1.5% higher, while HSBC and Lloyds both rallied 1.7%.

Royal Bank of Scotland, bucked the trend, shedding 0.5%.

Watch maker Swatch, which sells heavily in China, surged 5.4% on the Chinese currency move.

Meanwhile, European auto stocks, which are becoming increasingly fashionable in China, also spiked.

Daimler and BMW gained 3.2% and 2.7% respectively. Porsche jumped 5.5%.

Commodity stocks globally were particularly strong, with a surge in metal prices overnight in London helping commodity stocks. BHP Billiton and Rio Tinto spiked 4.7% and 4.9% respectively.

Anglo American climbed 3.5%.

Among oil stocks, Royal Dutch Shell added 1.4%, while the beleaguered BP lost another 2.2%. Repsol was 1.4% above the line.

Japanese Markets

Japan’s Nikkei reached a one-month high as China indicated it would put an end to the yaun’s fixed rate against the greenback. This, in turn, increased speculation demand in China would grow.

The Nikkei 225 climbed 242.99, or 2.43% to 10,238.01.

Heavyweight financials Mitsubishi UFJ and Mizuho added 1.9% and 1.3%.

Hitachi Construction Machinery spiked 6.7%. The company counts China as its largest market.

Komatsu rose 4.6%, while shippers Mitsui O.S.K. Lines and Nippon Yusen K.K. gained 4.5% and 3.1%.

Industrial robot maker Fanuc rallied 5.5%.

Trading houses Mitsubishi Corp. and Mitsui & Co. jumped 6.6% and 5.9% after a rise in commodity prices. There is also speculation China’s demand for resources will increase.

Automakers Nissan and Toyota rose 2.8% and 1.7%, while digital camera maker Canon gained 2.8%.

Hong Kong Markets

Hong Kong stocks matched European markets, with a ninth straight day of gains. Property stocks surged after the Chinese revaluation of the yuan made property stocks more attractive to investors in China.

The Hang Seng put on 625.47, or 3.08% to 20,912.18.

Bank of China spiked 2.5%, while ICBC was 3.3% above the line.

China Merchants Bank added 5.6% and HSBC put on 2.1%.

Among property stocks, state-controlled China Resources Land rallied 5.4%.

Guangzhou R&F Properties surged 7.3%. China Overseas Land & Development put on 5.2%.

Exporters to the US were mixed, with products from those companies set to be more expensive.

Li & Fung was down 1.4%, however Foxconn was 5.7% higher. 

Aussie shares started the week strongly as China indicated it would end the yuan’s fixed rate against the greenback. Commodity and financial stocks led gains, while the telco sector received a boost from Telstra’s agreement with NBN Co yesterday.

At the close of trade, the All Ords gained 58.6 to 4,632.7, while the ASX/200 rose 60.7 to 4,612.6. Around 2.4 billion shares worth around $5.7 billion had changed hands.

Telstra climbed 11c, or 3.4% to $3.34 after the telco giant signed a non-binding Financial Heads of Agreement with NBN Co to participate in the rollout of the National Broadband Network. The company said the transaction, if completed, would deliver it a post-tax net present value of about $11 billion.

The Telecommunications sector was 3.2% higher.

Elsewhere, the big four banks improved throughout the afternoon to finish between 1.1% and 1.9% higher. 

ANZ was the best performer, up 45c to $23.59.

The Banks and Financials sector put on 1.3%. 

Insurer Suncorp-Metway finished 1.8% dearer, while AMP added 4c to $5.65 after the New Zealand Commerce Commission granted clearance for AMP to acquire the Australian and New Zealand operations of AXA Asia Pacific.

AXA APH shares advanced 3c to $5.75.

The larger mining stocks contributed solid gains as the Materials and Resources sector rose 2%.

BHP Billiton and Rio Tinto gained 2% and 2.1% to $39.91 and $72.34 respectively despite a drop in metals prices in London.

Fortescue rose 20c, or 4.6% to $4.57 after announcing it is set to sign a Cooperation Agreement with China Gezhouba Group Company today pursuant to Fortescue’s expansion planning for 95 million tonnes per annum of capacity within its Chichester Hub.

Gold miners Newcrest and Lihir added 1.4% and 1.1% as the price of the precious metal reached record highs.

Alumina put on 3.7% to $1.675, while shares in Sundance Resources were halted as the search for six of the company’s executives missing in West Africa continues.

The Energy sector tracked the price of crude higher, gaining 1.3%.

Woodside added over 2 points to the broader index, rallying 2.1% to $45.65.

Oil Search put on 1.2%, while Aquila surged 3.9% to $9.42 as the iron ore and coal explorer executed a Memorandum of Understanding with China Development Bank Corporation.
 
Gains of 1.8% and 2.7% from Transurban and MAp led the Industrials sector to be 0.8% above the gain line.

Macquarie Atlas Roads surged 7% to $1.00.

It was mixed bag among Consumer Discretionary stocks as the sector finished 0.2% in the black.

David Jones shed 2c to $4.47 in the aftermath of CEO Mark McInnes’ resignation last week. Credit Suisse downgraded its rating on the stock to ‘underperform’, citing a potential negative impact on trading and on the brand.

Harvey Norman rose 2%, while Flight Centre climbed 2.2% to $17.96.

Gamer Crown advanced 1.9% to $8.15, while media company News Corp dragged, losing 31c, or 1.7% to $18.29.

Wesfarmers rose 1.6% to $29.70 as the Consumer Staples sector strengthened 0.4%. 

Brewer Foster’s weakened 0.9% to $5.76

Around the region, the Nikkei 225 climbed 243.0 to 10,238.0, while the NZSE50 gained 20.7 to 3,068.2. The Straits times Index added 52.6 to 2,886.0 and the Hang Seng rallied 576.5 to 20,863.2. 

Spot gold was trading at US$1,260.95 per ounce, while the Aussie was buying US$0.8834.

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Telstra signs $11bn NBN deal
Telstra Corporation signed a non-binding Financial Heads of Agreement with NBN Co yesterday to participate in the rollout of the National Broadband Network. The telecommunications giant said the transaction, if completed, would deliver it a post-tax net present value of about $11 billion.

At the close, Telstra shares were up 11c to $3.34.

Fortescue to sign engineering agreement
Fortescue Metals Group Limited (FMG) said it is set to sign a Cooperation Agreement with China Gezhouba Group Company (“CGGC”) today pursuant to Fortescue’s expansion planning for 95 million tonnes per annum of capacity within its Chichester Hub. The Australian iron ore miner said the agreement commits both parties to negotiate and define an engineering and procurement role for the Chinese engineering group, which would convert to a formal appointment, if mutually acceptable terms can be agreed.

At the end of the day, Fortescue shares were up 20c to $4.57.

AMP given green light by NZ competition watchdog
AMP welcomed the New Zealand Commerce Commission’s decision to grant clearance for AMP to acquire the Australian and New Zealand operations of AXA Asia Pacific Holdings. The Commerce Commission chair, Dr Mark Berry, said the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any of the affected markets.

At the bell, AMP shares were up 4c to $5.65, while AXA APH's shares were up 3c to $5.75.

GUD to raise capital as it proceeds with Dexion takeover
GUD Holdings shares were halted ahead of the company’s announcement that a takeover offer for Dexion would be funded via a mix of existing cash reserves and bank facilities, a fully-underwritten $40m institutional placement and a non-underwritten share purchase plan for up to $15m. GUD said under the takeover offer, it is offering Dexion shareholders 80c cash for every Dexion share, equating to an equity valuation for Dexion of $84 million.

At the finish, GUD shares remained halted at $8.65, while Dexion shares were up 4c to 76c.

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Filed under:
Market Watch by egoli

Aussie shares jumped out of the blocks Monday morning as global markets reacted to an indication that China was set to allow its currency to increase in value. While Telstra continued to rally after it moved closer to reaching an agreement with the government on NBN, the broader market began to slide as the morning progressed. 

At lunch, the All Ords gained 37.4 to 4,611.5, while the ASX/200 rose 39.1 to 4,591.0. Around 960 million shares worth around $2.2 billion had changed hands.

Telstra climbed 14c, or 4.3% to $3.37 after the telco signed a non-binding Financial Heads of Agreement with NBN Co yesterday to participate in the rollout of the National Broadband Network. The company said the transaction, if completed, would deliver it a post-tax net present value of about $11 billion.

The Telecommunications sector was 4.1% higher.

Elsewhere, the big four banks edged higher after their European and US peers rallied Friday.

ANZ was the best performer, up 1.2% to $23.42, while the remaining three were between 0.5% and 0.8% in the black.

The Banks and Financials sector put on 0.7%. 

Insurer AMP added 5c to $5.66 after the New Zealand Commerce Commission granted clearance for AMP to acquire the Australian and New Zealand operations of AXA Asia Pacific.

AXA APH shares advanced 2c to $5.74.

The larger mining stocks contributed solid gains as the Materials and Resources sector rose 1.3%.

BHP Billiton and Rio Tinto gained 1.4% each to $39.69 and $71.86 respectively despite a drop in metals prices in London.

Fortescue rose 15c, or 3.4% to $4.52 after announcing it is set to sign a Cooperation Agreement with China Gezhouba Group Company today pursuant to Fortescue’s expansion planning for 95 million tonnes per annum of capacity within its Chichester Hub.

Gold miners Newcrest and Lihir were only slightly higher despite the price of the precious metal reaching record highs in New York on Friday.

Alumina put on 2.2% to $1.65, while shares in Sundance Resources were halted as the search for executives missing in West Africa continues.

The Energy sector tracked the price of crude higher, gaining 0.8%.

Woodside added over 2 points to the broader index, rallying 1.7% to $45.47.

Oil Search added 0.9%, while Aquila surged 5% to $9.52 as the iron ore and coal explorer executed a Memorandum of Understanding with China Development Bank Corporation.

Linc Energy spiked 8.2% to $1.255.

Gains of between 1.4% and 1.6% from Toll, Transurban and MAp led the Industrials sector to be 0.6% above the gain line.

A mixed morning from Consumer Discretionary stocks resulted in the broader sector being flat at midday.

David Jones shed 5c to $4.44 in the aftermath of CEO Mark McInnes’ resignation last week. Credit Suisse downgraded its rating on the stock to ‘underperform’, citing a potential negative impact on trading and on the brand.

Another retailer, JB Hi-Fi, added 1.1%, while Flight Centre climbed 2.4% to $18.00.

Media company News Corp dragged, losing 33c, or 1.8% to $18.27.

It was also a mixed session for the Consumer Staples.

Wesfarmers rose 1% to $29.53, while brewer Foster’s weakened 1.2% to $5.74.

The sector was flat.

Around the region, the Nikkei 225 climbed 154.3 to 10,149.3, while the NZSE50 gained 18.9 to 3,066.4. The Straits times Index added 37.2 to 2,870.6.

Spot gold was trading at US$1,256.95 per ounce, while the Aussie was buying US$0.8779.

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Telstra signs $11bn NBN deal
Telstra Corporation signed a non-binding Financial Heads of Agreement with NBN Co yesterday to participate in the rollout of the National Broadband Network. The telecommunications giant said the transaction, if completed, would deliver it a post-tax net present value of about $11 billion.

At midday, Telstra shares were up 14c to $3.37.

Fortescue to sign engineering agreement
Fortescue Metals Group Limited (FMG) said it is set to sign a Cooperation Agreement with China Gezhouba Group Company (“CGGC”) today pursuant to Fortescue’s expansion planning for 95 million tonnes per annum of capacity within its Chichester Hub. The Australian iron ore miner said the agreement commits both parties to negotiate and define an engineering and procurement role for the Chinese engineering group, which would convert to a formal appointment, if mutually acceptable terms can be agreed.

At lunch, Fortescue shares were up 15c to $4.52.

AMP given green light by NZ competition watchdog
AMP welcomed the New Zealand Commerce Commission’s decision to grant clearance for AMP to acquire the Australian and New Zealand operations of AXA Asia Pacific Holdings. The Commerce Commission chair, Dr Mark Berry, said the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any of the affected markets.

At noon, AMP shares were up 5c to $5.66, while AXA APH's shares were up 2c to $5.74.

GUD to raise capital as it proceeds with Dexion takeover
GUD Holdings shares were halted ahead of the company’s announcement that a takeover offer for Dexion would be funded via a mix of existing cash reserves and bank facilities, a fully-underwritten $40m institutional placement and a non-underwritten share purchase plan for up to $15m. GUD said under the takeover offer, it is offering Dexion shareholders 80c cash for every Dexion share, equating to an equity valuation for Dexion of $84 million.

At lunchtime, GUD shares remained halted at $8.65, while Dexion shares were up 4.5c to 76.5c.

0

Filed under:
Market Watch by egoli

US stocks posted modest gains on Friday with low volumes and a lack of major corporate or economic news. Despite Friday’s unconvincing session, this was the second straight week of gains in New York. 

The Dow added 16.47 points, or 0.16% to 10,450.64, while the broader S&P 500 rose 1.47 points, or 0.13% to 1,117.51. The NASDAQ was up 2.64 points, or 0.11% to 2,309.80.

The next major economic report is due Wednesday, when the Commerce Department releases new home sales data. Economists argue that the housing market may struggle given the expiry of the housing tax credit.

Anxiety about the housing outlook weighed on home builders with D.R. falling 1.7%. PulteGroup and KB Home shed 1.6% and 1.7% respectively.

Dow component Home Depot managed to edge 0.1% higher.

JPMorgan was among the top Dow performers on Friday, rising 1.9% to US$39.18. Despite trading as high as US$47 in April, the market correction in May and June ensured the company remains in the red for the year to date.

Citigroup and Morgan Stanley also outperformed, rising 1.3% and 1.5% respectively. Goldman Sachs added a relatively modest 0.6%, while Bank of America was flat.

Looking to commodities, NYMEX light crude oil for July delivery rose US39c to settle at US$77.18 a barrel.

Exxon Mobil added 0.8%, Chevron was up 0.3% and ConocoPhillips gained 1.5%.

COMEX gold for August delivery closed up US$9.60 at a record high of US$1,258.30. During the session gold hit a trading record of US$1,263.70.

European Markets

European stocks finished mixed. Banks were stronger as European leaders said they would release details of "stress tests" on the financial health of the sector.

The UK benchmark FTSE 100 shed 3.05, or 0.06% to 5,250.84. The French CAC40 added 4.13, or 0.11% to 3,687.21, while the German DAX lost 6.56, or 0.11% to 6,216.98.

Banks made ground on the belief the release of the stress test would increase trust in the sector. French banks Societe Generale and BNP Paribas put on 2.9% and 2.3%.

UK banks, however, were mainly lower. Lloyds shed 1.5%. 

Banco Santander jumped 3.5% after the Spanish bank made an offer to acquire hundreds of Royal Bank of Scotland’s British branches.

Aussie miner BHP Billiton rose 1% despite a drop in metals prices. Peer Rio Tinto added 0.2%, while Xstrata advanced 1.6%.

Trouble oil giant BP dipped 0.6% after Moody’s cut its credit rating.

Porsche gained 1.3% after the automaker said it would report a narrower loss this year.

BMW and Daimler added 2.5% and 1.9%.

Pharmaceutical companies lagged, including Sanofi-Aventis which lost 3% on reports of cancer risks relating to one of its diabetes drugs. 

Japanese Markets

Japan’s Nikkei finished flat Friday but 3% higher for the week. The return of foreign investors to the market has boosted the market recently.

The Nikkei 225 lost 4.38, or 0.04% to 9,995.02.

Heavyweight financials Sumitomo Mitsui and Mitsubishi UFJ dipped 1.7% and 1.4%.

Consumer electronics company Canon lost 1%, while automakers Nissan and Toyota shed 2.5% and 1.7%.

Chip-related stocks Advantest Corp and Tokyo Electron edged 0.2% and 0.5% higher after Apple reached an all-time high due to the high demand for its new iPhones.

Promise Co. fell 6.1% as new regulations, including limiting the amount of debt a customer can take on, came into effect.

Takefuji Corp and Acom Co dropped 7.6% and 5.6%.

NGK Insulators shed 3.7% after having its target price cut by Credit Suisse.

Hong Kong Markets

Hong Kong stocks advanced after concerns about the European region’s debt were eased by strong demand in a Spanish bond auction.

The Hang Seng rose 148.31, or 0.74% to 20,286.71.

Among the banks Standard Chartered rallied 3.8%, while ICBC and Bank of China gained 1% and 0.7%.

HSBC put on 1.1%.

With a significant percentage of sales in Europe, Esprit added 0.2%.

Textile manufacturer Shenzhou International Group rallied 8% on a bullish note from Credit Suisse.

Shares gained 0.5% through the afternoon Friday, with the banks supporting the miners to lead the market higher. The ASX/200 put on 1% for the week.

At the end of the day, the All Ords gained 27.1 to 4,574.1, while the ASX/200 rose 24.6 to 4,551.9. Around 2 billion shares worth around $4.6 billion had changed hands.

BHP Billiton added 31c to $39.13. The world’s largest mining company shut down part of its iron-ore train link between Port Hedland and the mines in the region as police investigate reports of a death on the line this morning.

The Materials and Resources sector advanced 0.9%.

Rio Tinto and Fortescue were 1.1% and 1.4% dearer to be trading at $70.85 and $4.37 respectively.

Gold miners Newcrest and Lihir rallied 1.7% and 2.1% to $35.24 and $4.35 as the price of the precious metal reached record highs.

The smaller capped Eldorado, St Barbara and Perseus were 3.7%, 5.6% and 7.3% higher.

It was a more subdued morning for the Banks and Financials sector, which was 0.5% higher.

NAB rose 32c to $25.12 to be the best of the big four banks amid reports the company might sell an adviser network to IOOF Holdings on top of Axa Asia Pacific’s North platform in an effort to convince the ACCC of its takeover plan of AXA APH.

Westpac climbed 1.3%, while ANZ edged 0.8% above the line. CBA edged just 9c, or 0.2% higher to $52.59.

Macquarie’s shares reversed morning losses to be up 19c to $44.63.

Insurer AMP added 0.5% to $5.61.

Westfield led the Property Trusts sector to finish 0.3% in the red, with an 18c, or 1.4% fall to $12.62.

Oil related stocks showed weakness on the back of a 1% drop in the price of crude overnight. The Energy sector was 0.3% higher.

Woodside was virtually flat, while Santos and Oil Search slid 0.3% and 0.5% to $13.50 and $5.86 respectively. Caltex Australia and WorleyParsons dropped 3% and 3.2%.

Origin Energy gained 35c, or 2.3% to $15.84, while coal plays Coal & Allied and New Hope advanced 4.1% and 5.5%.

The Industrials sector lost 0.8% as the sector’s second largest stock, Brambles, tumbled 32c, or 5.2% to $5.89. The pallet maker has come under pressure in recent weeks following the loss of a key US customer.

Leighton eased 74c, or 2.2% lower to $32.27 as investors booked profits following strong gains yesterday.

It was more mixed for transport and logistics companies, with Toll down 0.7% to $5.89, while Asciano put on 2.5% to $1.69.

Airport owner MAp Group rose 2c, or 0.7% to $2.96.

Alesco slumped 2.8% to $2.77 after the company said it expects to post a loss around $126 million for the year ended 31 May 2010 following a $133 million writedown on its Water Products and Services Division.

Individual stocks, rather than the sub-sectors, countered one another in the Consumer Discretionary sector, which added 0.3%.

David Jones shed 2c to $4.49 after the retailer announced CEO Mark McInnes had resigned with immediate effect for behaving “in a manner unbecoming of the high standard expected of a chief executive officer”.

Pacific Brands rallied 3c to 95.5c, while education services provider Navitas put on 22c, or 5% to $4.63.

Among the media plays, Ten and Consolidated Media rose 1.8% and 1.2%, while the larger capped Fairfax shed 2c to $1.45.

The Consumer Staples sector was up 0.4%.

The two majors Woolworths and Wesfarmers added 0.4% and 1%, however second tier supermarket operator, Metcash bucked the trend, down 13c to $4.15 after going ex-div.

The Telecommunications sector was 2.1% stronger, thanks to a 7c rally to $3.23 from Telstra.

Around the region, the Nikkei 225 retreated 4.4 to 9,995.0, while the NZSE50 gained 1.8 to 3,047.5. The Hang Seng rose 151.9 to 20,290.3.

Spot gold was trading at US$1,244.53 per ounce, while the Aussie was buying US$0.8696.

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BHP close Port Hedland rail link
BHP Billiton has shut down part of its iron-ore train link between Port Hedland and the mines in the region, the company said. Police have said they were investigating reports of a death on the line at around 4am this morning about 200km south of Port Hedland.

At the close, BHP Billiton shares were up 31c to $39.13.

Alesco posts $126m loss on more writedowns
Alesco Corporation said it is expecting to post a loss around $126 million for the year ended 31 May 2010. Following the release of its unaudited financial statements, the wholesale distribution company said the loss was on the back of a $133 million writedown on its Water Products and Services Division.

At the end of the day, Alesco shares were down 8c to $2.77.

David Jones CEO resigns amid scandal
David Jones this morning said its CEO Mark McInnes had resigned from his position with immediate effect for behaving "in a manner unbecoming of the high standard expected of a chief executive officer". Mr McInnes confirmed he behaved inappropriately towards a female member of staff at two recent company functions.

At the bell, David Jones shares were trading down 2c to $4.49.

Local shares edged 0.4% higher by lunchtime Friday, with the mining sector coming back into favour. Banks showed modest gains, while across other sectors there was a broad mix of gainers and losers.         

At noon, the All Ords gained 15.5 to 4,562.5, while the ASX/200 rose 14.8 to 4,542.1. Around 820 million shares worth around $1.5 billion had changed hands.

BHP Billiton added 27c to $39.09. The world’s largest mining company shut down part of its iron-ore train link between Port Hedland and the mines in the region as police investigate reports of a death on the line this morning.

The Materials and Resources sector advanced 0.8%.

The Federal Government’s Resource Super Profits Tax has been blamed for mining takeovers hitting a five-year low this quarter.

Rio Tinto and Fortescue were both 1.2% dearer to be trading at $70.94 and $4.36 respectively.

Gold miners Newcrest and Lihir rallied 1.6% and 2.1% to $35.18 and $4.35 as the price of the precious metal reached record highs.

The smaller capped Eldorado, St Barbara and Perseus were between 3.8% and 6.9% higher.

It was a more subdued morning for the Banks and Financials sector, which was 0.35 higher.

NAB rose 33c to $25.13 to be the best of the big four banks amid reports the company might sell an adviser network to IOOF Holdings on top of Axa Asia Pacific’s North platform in an effort to convince the ACCC of its takeover plan of AXA APH.

Westpac edged 0.4% above the line, while ANZ and CBA were barely moved.

Macquarie’s shares continued on from yesterday’s weakness to be down 12c to $44.32. The investment bank announced yesterday the resignation of more analysts.

Insurer AMP added 0.9% to $5.63.

Westfield led the Property Trusts sector to be 0.4% in the red, with a 18c, or 1.4% fall to $12.62.

Oil related stocks showed weakness on the back of a 1% drop in the price of crude overnight. The Energy sector was flat.

While Woodside was flat, Santos and Origin slid 0.8% and 0.5% to $13.43 and $5.86 respectively. Caltex Australia and WorleyParsons dropped 2% and 1.6%.

Origin Energy gained 18c, or 1.2% to $15.67, while coal plays Coal & Allied and Centennial advanced 1.7% and 1.8%.

The Industrials sector lost 0.3% as the sector’s second largest stock, Brambles, tumbled 25c, or 4% to $5.96. The pallet maker has come under pressure in recent weeks following the loss of a key US customer.

Leighton eased 28c lower to $32.73 as investors booked profits following strong gains yesterday.

It was more mixed for transport and logistics companies, with Toll down 1.5% to $5.84, while Asciano put on 0.6% to $1.675.

Airport owner Map Group rallied 4c, or 1.4% to $.298.

Alesco slumped 4.9% to $2.71 after the company said it expects to post a loss around $126 million for the year ended 31 May 2010 following a $133 million writedown on its Water Products and Services Division.

Individual stocks, rather than the sub-sectors, countered one another in the Consumer Discretionary sector, which dipped 0.1%.

David Jones shed 10c, or 2.2% to $4.41 after the retailer announced CEO Mark McInnes had resigned with immediate effect for behaving “in a manner unbecoming of the high standard expected of a chief executive officer”.

Pacific Brands rallied 4.5c to 97c, while education services provider Navitas put on 12c, or 2.7% to $4.53.

Among the media plays Ten and Consolidated Media rose 1.8% and 1.2%, while the larger capped Fairfax shed 1.5c to $1.455.

The Consumer Staples sector was also down just 0.1%.

The two majors, Woolworths and Wesfarmers were both within 0.3% above the gain line, however second tier supermarket operator, Metcash, however bucked the trend, down 16c to 3.7%.

Among the beverage makers, Coca-Cola Amatil lost 5c to $11.69, while Foster’s was flat.

The Telecommunications sector was 1.2% stronger, thanks to a 3c rally to $3.19 from Telstra.

Around the region, the Nikkei 225 added 3.8 to 10,003.2, while the NZSE50 gained 4.4 to 3,050.1.

Spot gold was trading at US$1,244.28 per ounce, while the Aussie was buying US$0.8683.

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BHP close Port Hedland rail link
BHP Billiton has shut down part of its iron-ore train link between Port Hedland and the mines in the region, the company said. Police have said they were investigating reports of a death on the line at around 4am this morning about 200km south of Port Hedland.

At midday, BHP Billiton shares were up 31c to $39.13.

Alesco posts $126m loss on more writedowns
Alesco Corporation said it is expecting to post a loss around $126 million for the year ended 31 May 2010. Following the release of its unaudited financial statements, the wholesale distribution company said the loss was on the back of a $133 million writedown on its Water Products and Services Division.

Half way through the day, Alesco shares were down 18c to $2.67.

David Jones CEO resigns amid scandal
David Jones this morning said its CEO Mark McInnes had resigned from his position with immediate effect for behaving "in a manner unbecoming of the high standard expected of a chief executive officer". Mr McInnes confirmed he behaved inappropriately towards a female member of staff at two recent company functions.

At noon, David Jones shares were trading down 10c to $4.41.

 

Wall Street recovered from earlier losses to close just above the line as the Dow returned to the black for the year. A rally from commodity and consumer stocks outweighed disappointing manufacturing and jobs data. 

In economic news, the Philadelphia Fed index dropped from 21.4 in May to 8 in June. Forecasts were for the regional reading on manufacturing to fall to 20.

Meanwhile, the Consumer Price index dipped 0.2% in May after a 0.1% decline the previous month. Estimates were for a 0.1% fall.

In employment news, new unemployment claims unexpectedly rose from 460,000 the previous week to 472,000 last week. Continuing claims also unexpectedly rose, this time from 4,483,000 to 4,571,000.

The Dow Jones added 24.71 points, or 0.24%, to 10,434.17, the S&P's 500 gained 1.43 points, or 0.13%, to 1,116.04 and the NASDAQ  edged 1.23 points, or 0.05% higher to 2,307.16.

BP ADR’s slid 0.4% as the oil giant announced it was cancelling its quarterly dividend and establishing a US$20 billion fund to cover damages related to the oil spill in the Gulf of Mexico.

Exxon Mobil and Chevron edged 0.1% and 0.5% higher, while ConocoPhillips rose 1.3%.

NYMEX light crude oil for July delivery fell US$1.31 to US$76.36 a barrel.

Financials lost ground. The three largest by market capitalisation, Bank of America, JPMorgan and Wells Fargo, dipped between 0.2% and 0.7%.

Insurance company Travelers, however, gained 1.7%.

Apple was the best of the tech majors, adding 1.7%. Microsoft advanced 0.2%, while Oracle shed 0.5%.

Kroger put on 3.3% after the grocery chain reported better-than-expected quarterly earnings.

Winnebago spiked 11.9% after the mobile home maker easily beat quarterly earnings estimates.

COMEX gold for August delivery rose US$18.20 to settle at and all-time high of US$1,248.70 an ounce. Barrick Gold climbed 3.8%.

European Markets

European stocks close higher for the seventh consecutive session after investor’s were encouraged by strong demand in a Spanish bond auction. Gains were somewhat capped by the release of economic data out of the US, which missed estimates.

The UK benchmark FTSE 100 added 15.97, or 0.30% to 5,253.89. The French CAC40 rose 7.15, or 0.19% to 3,683.08, while the German DAX gained 32.63, or 0.53% higher to 6,223.54.

BP rallied 6.7% as it ended speculation as to whether it would pay quarterly dividends and also agreed to set up a damage claim fund.

Royal Dutch Shell and Total added 0.4% and 0.2%, while BG Group shed 1.8%.

UK banks Barclays, Lloyds and Royal Bank of Scotland climbed between 2.6% and 3.4% after the new finance minister gave the Bank of England more power, ditched the Financial Services Authority and appointed an independent committee to investigate as to whether retail and investment banking should be separated.

In France Societe Generale advanced 2.7%.

A drop in metals prices sent miners lower. Xstrata lost 2.4%, while Aussie peers BHP Billiton and Rio Tinto slid 0.5% and 0.6%.

Japanese Markets

Profit-taking ended the Nikkei’s a five-day winning streak Thursday. Exporters and mobile phone related stocks lost ground.

The Nikkei 225 fell 67.75, or 0.67% to 9,999.40.

Consumer electronics companies Sony, Kyocera and Panasonic lost 2.8%, 2.9% and 2.6% respectively after the yen strengthened against the euro and greenback.

Video console and game maker Nintendo climbed 5.2%.

Automakers Nissan and Toyota shed 1.4% and 1.1%, while Mazda dropped 2.5%.

Mobile phone part makers Hirose and Nissha fell 1.8% and 1.2% after Nokia downgraded its sales forecast for the second quarter.

Financials Mitsubishi UFJ and Sumitomo Mitsui dipped 1.2% and 1%.

Hong Kong Markets

The Hang Seng has recorded its longest winning streak in over 13 months Thursday. Consumer clothing stocks surged, while the financial sector capped gains.

The Hang Seng added 76.25, or 0.38% to 20,138.40.

Heavyweight lender ICBC lost 0.9%, while Bank of China eased 0.3% lower. Bank of Communications retreated 1%.

HSBC bucked the trend with a 0.3% gain.

Li & Fung, which makes clothes for Wal-Mart, surged 4.5% as US imports increased.

Shoemaker Yue Yuen Holdings rallied 4%, while Foxconn retreated 0.9%.

Property developers, Sun Hung Kai Properties added 0.9% as it bid for a parcel in downtown Shanghai.

Henderson Land Development, however slumped 2.1% to be one of the day’s biggest losers.

Cnooc surged 2.4%, while Sinopec and PetroChina eased just lower.

Aussie stocks moved steadily lower Thursday for the market to eventually close 0.7% below the gain line. The slide followed softness in international markets overnight, with the major banks and miners leading the fall.

In economic news, the Melbourne Institute household financial conditions index increased from 28.8 in the March quarter to 33.7 in the June quarter. According to the survey household savings improved, however credit cards surpassed mortgages as the primary type of debt for the first time in nearly four years.

At the end of the day, the All Ords lost 25.1 to 4,547.0, while the ASX/200 shed 31.7 to 4,527.3. Around 2 billion shares worth around $5.6 billion had changed hands.

The Materials and Resources sector lost 0.8%. BHP Billiton and Rio Tinto shed 41c and $1.27 to $38.82 and $70.07.

The two miners have reportedly secured a price for iron ore of $147 per tonne for the coming quarter, up 23% from the previous quarter and 140% on last year’s prices.

Gold miners often counter-balance the broader results for the commodities sector and today was no different. Newcrest and Lihir added 1.4% and 1.2% to $34.64 and $4.26.

OZ Minerals retreated 2.5c to $1.035 and iron ore miner Fortescue gained 4c to $4.31.

Among the homebuilders, James Hardie slumped 27c, or 3.8% to $6.76, with Deutsche Bank suggesting recovery for that company might not happen until FY12.

The Energy sector was down 0.6% overall.

Oil Search, Origin and Woodside were between 0.4% and 1.2% lower.

Origin this morning said its New Zealand subsidiary, Contact Energy, had experienced ‘soft’ demand in May.

WorleyParsons lost 2.5% to $23.11.

Coal stocks New Hope and Coal & Allied rallied 1.1% and 0.9%.

The Banks and Financials sector lost 1.0%.

By the bell the big four were between 0.9% and 1.2% in the red.

Westpac and NAB declined 1.1% and 1.2% to $23.26 and $24.80 respectively.

QBE shed 27c to $18.68 after the insurer said that its insurance profit margin for the year was under pressure.

Investment bank Macquarie fell $1.11, or 2.4% to $44.44.

Leighton was the standout in the Industrial sector, with its subsidiary, Leighton Asia securing $1.5 billion in new work, mainly in the Indonesian mining sector.

Its shares rose 70c, or 2.2% to $33.01, while the sector edged 0.1% higher.

Asciano added 4c to 2.5% to $1.665 despite warning shareholders they wouldn’t be receiving a dividend this year.

Brambles slid 14c, or 2.2% to $6.21.

Consumer Discretionary stocks tended lower, with the sector down 1.2% overall.

Retailer Billabong dipped 24c to $9.45, while Pacific Brands dropped 4.5c to 92.5c.

It was a similar story for media stocks, with Ten and Fairfax down 2.3% and 2% to $1.68 and $1.47.

Gamer Aristocrat fell 2.7% to $3.97.

Telstra slid 2c to $3.16, as the broader Telecommunications sector retreated 0.6%.

In the Healthcare sector, Sigma Pharmaceuticals added 4.5c to 54c after Citigroup upgraded the stock to ‘buy’ from ‘sell’. The sector rose 0.2%.

Around the region, the Nikkei 225 fell 467.8 to 9,999.4, while the NZSE50 retreated 20.9 to 3,045.7. The Straits Times Index dipped 4.0 points to 2,842.9. The Hang Seng shed 68.1 to 20,130.2.

Spot gold was trading at US$1,233.78 per ounce, while the Aussie was buying US$0.8610.

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Leighton secures $1.5bn in new work
Leighton Holdings subsidiary, Leighton Asia, said it has been awarded a $1.1 billion contract for the expansion of the mining services at the MSJ coal mine in Indonesia for PT Mahakam Sumber Jaya. At the same time, Thiess Services were awarded $405 million remediation project.

At the end of the day, Leighton shares were up 70c to $33.01.

QBE lowers insurance margin expectations
QBE Insurance Group expects its half-year insurance profit margin to be at the lower end of its targeted range of 16% to 18%. In an investor update in London last night, the insurer said full year targeted investment yield on policyholders’ funds would be slightly higher than 3% guidance.

At the close, QBE shares were down 27c to $18.68.

UGL awarded $280m in contracts
UGL today announced that it has secured new works and project extensions with a range of blue chip customers worth a total end value of approximately $280m. The company also reaffirmed its previously stated FY10 earnings guidance, which is for profit to be in line with the prior year.

By the finish, UGL shares were unchanged at $13.85.

Asciano won't pay final dividend, again
Asciano Group today said it would not pay a final dividend for FY10. The decision to cut the dividend means it will be at least two years since Asciano last paid a dividend.

At the end of the day, Asciano shares were trading up 4c to $1.665.

Rubicor upgrades earnings guidance
At a time when many companies are dampening enthusiasm about their profit expectations, Rubicor Group this morning has upgraded its profit guidance for the year to 30 June. The recruitment services company said it was now expecting EBITDA to be around $8 million to $8.5 million, up from $7 million to $7.5 million flagged just last month.

By the final whistle, Rubicor shares were 0.7c higher at 5.5c each.

Stockland forecasts drop in dividend
Stockland announced an estimated dividend for the six months to 30 June 2010 of 10.8c per share. The property development company said this equates to a full-year dividend of 21.6c per share. 

At the end of the day, Stockland shares were down 3c to $3.99.

The Australian stock market turned south mid-morning on softness in international markets overnight as uncertainty re-emerged over the strength of global economic recovery. The sell-off was led by the banks and the big miners, the main beneficiaries from yesterday’s gains.

At noon, the All Ords lost 10.5 to 4,561.6, while the ASX/200 shed 14.5 to 4,544.5. Around 960 million shares worth around $3.2 billion had changed hands.

The Materials and Resources sector lost 0.5%. BHP Billiton and Rio Tinto shed 42c and 94c to $38.81 and $70.40.

The two miners have reportedly secured a price for iron ore of $147 per tonne for the coming quarter, up 23% from the previous quarter and 140% on last year’s prices.

Gold miners often counter-balance the broader results for the commodities sector and this morning was no different. Newcrest and Lihir added 1.1% and 1%.

OZ Minerals retreated 2.5c to $1.035 and iron ore miner Fortescue gained 7c, or 1.6% to $4.34.

Among the homebuilders, Jame Hardie shed 21c, or 3% to $6.82, with Deutsche Bank suggesting recovery for that company might not happen until FY12.

It was a subdued morning’s trade among the Energy plays, with the sector down 0.5% overall.

Oil Search, Arrow Energy and Woodside Petroleum were all down 0.4%.

Losses were more pronounced for Origin Energy, down 0.8%. The company this morning said its New Zealand subsidiary, Contact Energy, had experienced ‘soft’ demand in May.

The Banks and Financials sector lost 0.4%.

At lunchtime ANZ and CBA had both shed 0.4%, while Westpac and NAB both double those losses, with declines of 0.8% to $23.34 and $24.91 respectively.

The insurers were all flat. QBE was virtually unchanged despite saying that its insurance profit margin for the year was under pressure. Yesterday, however, it was the only insurer to close lower.

GPT Group and Goodman Group helped the Property Trusts sector tack on 0.4% with strong gains. Westfield added 7c, or 0.5% to $12.88.

Leighton was the standout in the Industrial sector, with its subsidiary, Leighton Asia securing $1.5 billion in new work, mainly in the Indonesian mining sector.

Its shares rose $1.27 to $33.58, while the sector edged 0.9% higher.

Asciano added 5c to 3.1% to $1.675 despite warning shareholders they wouldn’t be receiving a dividend this year.

Toll was unchanged at lunch, while CSR gained 1.2%.

Consumer Discretionary stocks tended lower, with the sector down 0.5% overall.

JB Hi-Fi, Myer, David Jones and Harvey Norman all lost between 0.5% and 1%.

It was a similar story for media stocks, with Newscorp down 16c, or 0.9% to $18.50.

The Consumer Staples sector added 0.1%.

Woolworths gained 0.5%, as did Coca-Cola Amatil, while Wesfarmers lost 0.4%. 

Telstra sank 4c, or 1.3% to $3.14, as the broader Telecommunications sector retreated 0.9%.

In the Healthcare sector, Sigma Pharmaceuticals added 2c to 51.5c after Citigroup upgraded the stock to ‘buy’ from ‘sell’. The sector rose 0.3%.

Around the region, the Nikkei 225 fell 43.7 to 10,023.5, while the NZSE50 retreated 14.5 to 3,052.0. The Straits Times Index dipped 0.3 points to 2,846.6.

Spot gold was trading at US$1,232.95 per ounce, while the Aussie was buying US$0.8596.

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Leighton secures $1.5bn in new work
Leighton Holdings subsidiary, Leighton Asia, said it has been awarded a $1.1 billion contract for the expansion of the mining services at the MSJ coal mine in Indonesia for PT Mahakam Sumber Jaya . At the same time, Thiess Services were awarded $405 million remediation project.

At midday, Leighton shares were up $1.25 to $33.56.

QBE lowers insurance margin expectations
QBE Insurance Group expects its half-year insurance profit margin to be at the lower end of its targeted range of 16% to 18%. In an investor update in London last night, the insurer said full year targeted investment yield on policyholders’ funds would be slightly higher than 3% guidance.

At lunch, QBE shares were up 5c to $19.00.

UGL awarded $280m in contracts
UGL today announced that it has secured new works and project extensions with a range of blue chip customers worth a total end value of approximately $280m. The company also reaffirmed its previously stated FY10 earnings guidance, which is for profit to be in line with the prior year.

At noon, UGL shares were up 8c to $13.93.

Asciano won't pay final dividend, again
Asciano Group today said it would not pay a final dividend for FY10. The decision to cut the dividend means it will be at least two years since Asciano last paid a dividend.

At lunchtime, Asciano shares were trading up 5c to $1.675.

Rubicor upgrades earnings guidance
At a time when many companies are dampening enthusiasm about their profit expectations, Rubicor Group this morning has upgraded its profit guidance for the year to 30 June. The recruitment services company said it was now expecting EBITDA to be around $8 million to $8.5 million, up from $7 million to $7.5 million flagged just last month.

Rubicor shares were 0.2c higher at 5c each.

Stockland forecasts drop in dividend
Stockland announced an estimated dividend for the six months to 30 June 2010 of 10.8c per share. The property development company said this equates to a full-year dividend of 21.6c per share. 

At midday, Stockland shares were up 2c to $4.04.