As this is my last afternoon report for the year, I wish all my readers a happy, healthy and prosperous 2014!Hope you have enjoyed reading my afternoon reports and have found them useful. After all FN Arena did pronounce them the second best market round up in the universe!
So, today we got a little touch of tinsel, Xmas pudding and a mince tart and no indigestion at all. Santa Ben came to town and after softening us up for months, he finally delivered the Taper and what a relief. Now the US economy can stand on its own two feet, he now starts to remove the crutches. The US markets went to records and our market took off. We finished the session up a whopping 106 points at 5203,still a long way off our recent high but at least a big step in the right direction. Amazing how much it rallied in the last hour. Seems the DJs window wasn’t the only thing dressed up this Xmas! The momentum built throughout the day as sellers went to a Xmas lunch and left the field clear to keep pushing it higher. As is customary the banks did the heavy lifting but it was nicely festive to see the big resource stocks chip in as well. #BHP#,#RIO#,#FMG# and #WPL# all had a day out at the seaside. Other energy stocks also promenaded on the pier as #ORG# had some more success at Moomba, which in turn helped #OSH# and #STO#. Gold however continue to feel like the market pariahs
Industrials today were led by #TLS#,#WOW#,#WES#,#CWN#,#FOX#,#AMC#,#ORI# and #BXB#. Retailers also pushed ahead with #MYR#,#JBH#,#BRG#,#DJS#,#HVN# and even #DSH# feeling the Xmas cheer.
Sitting happily on top of the Xmas tree were #CTX#,#FLN#,#BSL#,#SIR#,#NUF#,#QBE#,#OZL# and #ARI# whilst under the tree were new entrant #CVO#,#WTF#,#MYT#,#YAL#,#GDI#,#CNU#,#BDR# and #WOR#.
Volume was at the top end of recent days as we had option expiry today at over $6bn whilst Asian markets were mixed with Japan up strongly although China was off a small amount. Aussie dollar trading around 88.30 whilst Bitcon has been digitally mangled and has fallen to $645!Ouch!Pass the Tulips someone?
Stocks and Stories
#CVO#, the new IPO on the chopping block today as it underwhelmed dramatically. Bit of a theme this year. #NEC#,#DSH#,#ORA#,#REC# etc The lesson seems to be beware of Private equity bearing false gifts!
Big fat dividend cheques about to land on punters doorsteps or in their banks in the next day or so.
#CTX# rallied hard today following a market update. In historic accounting terms, the net profit is forecast to surge to $515-535 million, well ahead of the $366 million earned a year earlier.
However, using the company’s preferred replacement cost accounting, it estimates the 2013 net profit is forecast to slump to $320-340 million, well down from the net profit of $458 million earned a year earlier
#AQA# briefly spiked more than 6 per cent this afternoon after the company said one of China’s largest steelmakers, Baosteel, raised its stake to almost 20 per cent. However enthusiasm soon evaporated to provide a more modest rise.
#DLX# held their AGM today for Old English sheepdogs and the shares benefitted from comments on low interest rates, expansionary consumer confidence and rising house prices which were helping its Australian operations.
#WOR# has been hit with legal action following its recent profit downgrade, with a claim it failed to comply with “continuous disclosure” requirements.
Tomorrows News Today
Eurozone finance ministers have agreed on a long-awaited pact on how to deal with failing banks in the region. It aims to create a 55bn euro ($75bn; £46bn) fund – financed by the banking industry, over the next 10 years.
Ukraine’s decision to suspend a deal on closer EU ties and sign a Russian aid agreement instead has helped avoid bankruptcy, Prime Minister Mykola Azarov has told ministers in Kiev. Russia has agreed to buy $15bn (£9.2bn, 11bn euros) of government bonds and slash the price of gas.
Britain’s unemployment rate fell faster than expected in the three months to October, sliding to 7.4 percent — its lowest level in four and a half years. As a result, the U.K.’s unemployment rate is moving closer to 7 percent, which is the Bank of England’s (BoE) threshold level for considering a hike in interest rates.
Does anyone else find it ironic that a digital made up currency Bitcon that was designed so no governments could track its legal or illegal transaction pathways is hit because of Government intervention. This was a smack-down waiting to happen!
BP is back in the Gulf of Mexico and has hit some pretty deep oil at 30,000 ft. First discovery from deepwater drilling since US regulators lifted a five-month ban on deep-water drilling in 2010 after the Macondo well blowout; it follows two finds in the Gulf in 2006 and 2009.
And in separate news for BP they led a group of companies signing a $45 billion deal to pipe natural gas from Azerbaijan’s Shah Deniz field to Italy, offering the European Union an alternative to Russian supplies. The World is not Enough! Watched it last night. Always good!
So as we kiss goodbye to 2014 ,it looks like the QEIII has been a huge success. All those economies that have printed money are doing well. Austerity hasn’t worked out quite so well.US, UK, Japan strong. Europe weak still.
And just to make you feel better this Xmas about your excess spending and drinking .Total household wealth (net worth) stood at a record $7,318.6 billion at the end of September, up $225.3 billion over the quarter – the biggest quarterly rise in almost four years. In per capita terms, wealth rose to a record $315,117 in the September quarter, up $8,458 over the quarter.
Have a great Xmas and a prosperous and healthy new year