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Good US jobs numbers on Friday ensured the Dow roared above 15,000 for a brief time before sliding a little but still very strong..after Fridays dismal performance expect to see it far better today..at least early that is..Financials will be the trail blazers again with resources finding some support from higher copper prices.
Good to see the French pushing back against austerity measures from Germany..unusual to see them push back against the Germans..haven’t exactly got history in that respect!…but the austerity drive in the Zombie zone is coming to an end..hair shirts are being packed away to be replaced by a growth model…not sure they have worked out what a growth model is yet but by heck when they find it they are going to be so happy!!
Well, so far my Sell in May call or at least market going nowhere call is NOT working at all well…it is only the 6th but US continues with its head of steam driven by free money searching for a home….same the World over….
Best laugh I had over the weekend was Julia Gillard saying she though they could still win……
Idea of the Day
One of my faves for some time has been APN..now the stock has run from 26 to 40 but today they have appointed a new CEO..bout time…Micheal Miller is a News Ltd man and has some good runs on the board for digital biz…I believe this is a good turnaround story and continues to offer value around 37/38 for a move towards 50….it may not happen overnight but it will happen!Speculative but worth a look …then of course there is the banks and other yield stocks…TLS remains in my must have list..best bank WBC…next best is NAB for UK turnaround…
Things that make me go all….
1.Copper fans out there were in force as shorters scrambled for cover Friday as Copper Futures surged the most in 18 months but Iron ore broke through $130, closing down 1% at $128; BHP and RIO were strong overseas so this will help the market.
2.Australia’s treasury department has lowered its growth forecasts for the current fiscal year and next, the Australian Financial Review reported Monday without citing a source. The treasury department has cut its gross domestic product growth outlook by one quarter of a percentage point and now expects growth of 2.75% for the fiscal year ending June 30 and for the 2013-2014 fiscal year.
3.ANZ Banking Group: chief Mike Smith says the share prices of Australian banks can “probably be justified” and while they are being pushed higher by the vast amounts of liquidity being pumped into the financial system, bank shares are “not in the stratosphere yet”. Compared with earnings, banks shares are at a record high. Asked whether bank shares were overvalued, Mr Smith pointed to monetary easing policies by central banks which were creating a thirst for assets offering yield.
4.Westpac is planning to aggressively expand its mortgage book to address falling market share, suggesting competition in the $1.3 trillion home-loan market is unlikely to decrease.
5.And still in banking.. The market responded well to Macquarie Group’s decision to return cash to shareholders in the form of a $2 dividend on Friday, but one analyst is concerned Australia’s biggest investment bank has run out of ideas. The dividend took Macquarie’s payout ratio to 79 per cent, an unheard of level for an investment bank
6.Malaysian Election win for ruling party ..extending the status quo after 55 years! Possibly good for LYC…
7.Chelsea beat Man United 1-0 to keep Champions league hopes alive.
8.One in five UK households borrowed money or used savings to cover food costs in April, a Which? survey says.It suggests the equivalent of five million households used credit cards, overdrafts or savings to buy food.
9.ORICA 1H13 result Revenue up 1% toA$3.33B, below Factset consensus A$3.36B EBIT up 6% to A$442M ($419M pcp), below consensus A$450M NPAT up 5% to A$267M, below consensus A$269M Interim dividend 39cps (38% franked), vs 38cps pcp
10.Syria gets a pounding from Israel and Gold moves not a fraction…strange..this seems to have been overlooked post the US jobs number euphoria.
Things to watch out for today..
Australian Bureau of Statistics (ABS) retail trade for March
ANZ job advertisements series for April
TD Securities – Melbourne Institute inflation gauge for April
Dun and Bradstreet business expectations
And later this week…Tuesday RBA Meeting…Thursday NAB Results..pressure is on!!
Have a great Day
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