A wishy washy reaction to the news of the storm in the black sea cup being downgraded to a passing shower. After big rises on Wall Street and Europe we blasted out of the blocks only to hit the glass ceiling at 5450 and once again backed off from it. The big green bank blob was in the ascendency with Macquarie Group Limited (A$56.55, +1.7%), Suncorp Group Limited (A$12.29, +1.2%) and AMP Limited (A$4.82, +1.7%) also joining in the fun. Money managers Perpetual Limited (A$52.93, +2.4%), Magellan Financial Group Limited (A$13.62, +4.0%), IOOF Holdings Limited (A$9.41, +2.3%) and Henderson Group PLC. (A$4.57, +2.0%) also caught eh buzz as what is good for equity markets is good for these guys. The GDP number at 11.30 looks to have put the kibosh on any further rate cuts and the Aussie dollar had a spurt briefly before the Chinese PMI took some wind out of the sails.in the end the index closed up 46 at 5446best since the GFC.
Miners put in an effort with BHP Billiton Limited (A$37.80, +1.2%),Alumina Limited, Iluka Resources Limited (A$9.71, +2.5%), Panaust Limited (A$1.835, +5.8%), Arrium Limited (A$1.535, +1.0%), Bluescope Steel Limited (A$6.25, +4.2%) and Sims Metal Management Limited (A$9.93, +3.0%) and gold stocks were pretty much unchanged despite the price falling on the decreased tensions in the Crimea. Seems most of the action took place yesterday Newcrest Mining Limited (A$11.78, +0.3%) were even up for a time.
Industrials were generally firm with Wesfarmers Limited (A$43.15, +1.0%) better on expansion plans, Computershare Limited (A$12.36, +3.1%) on market activity, healthcare stocks such as Sirtex Medical Limited (A$15.68, +5.7%) and Ramsay Health Care Limited (A$49.33, +3.0%) also shone whilst REA Group Ltd (A$51.00, +2.6%) continued to find buyers as brokers suggested they like Fairfax Media Limited (A$0.975, +3.2%), Csr Limited (A$3.25, +4.5%) and the banks will be big winners from the housing scramble in Sydney and Melbourne.Media stocks are climbing with Fairfax Media Limited (A$0.975, +3.2%),Ten Network Holdings Limited (A$0.34, +1.5%),Seven West Media Limited (A$2.24, +0.9%) and REA Group Ltd (A$51.00, +2.6%) in demand.
Big movers and shakers today in green today included Iproperty Group Limited (A$3.09, +5.5%), Sirtex Medical Limited (A$15.68, +5.7%),Energy Resources of Australia Limited (A$1.60, +5.6%), Panaust Limited (A$1.835, +5.8%),Aristocrat Leisure Limited (A$5.20, +4.2%),G8 Education Limited (A$4.24, +4.2%), Greencross Limited (A$8.08, +4.8%) and Magellan Financial Group Limited (A$13.62, +4.0%) whilst in the red corner were Goodman Fielder Limited (A$0.63, -1.6%),Hutchison Telecommunications (Australia) Limited (A$0.092, -3.2%),Treasury Wine Estates Limited (A$3.76, -2.1%),Mount Gibson Iron Limited (A$0.835, -2.9%),Northern Star Resources Ltd (A$1.195, -2.0%) and Mighty River Power Limited (A$1.895, -1.6%) with RIO Tinto Limited (A$64.81, -1.5%) ex-dividend today. Volume was pretty good at over $5bn.
Asian markets were better as the MSCI Asia Pacific Index climbed 0.8 percent its biggest increase since Feb. 21, as Japanese shares rallied after the yen retreated yesterday. Aussie dollar up to 89.60 and Gold steady at around $1338
Stocks and Stories
Flinders Mines Limited (A$0.029, -14.7%) were sold off as the short term punters took profits after the recent cash raising.
GDP came in better than expected at 2.8% and poor old Uncle Joe struggled to explain what it meant why he had been too pessimistic and his plans for the future. I was doing Sky Biz live when we crossed to him. Rabbit in the headlights, then everyone wanted to talk Qantas Airways Limited (A$1.14, +0.4%). Again.
The Chinese HSBC/Markit Services Purchasing Managers’ Index (PMI) rose to 51.0 in February from January’s 50.7, buoyed by new orders, remaining above the 50 line that separates expansion from contraction.
Fairfax Media Limited (A$0.975, +3.2%) hit $1.00 today. Thought they might. Seem to be a beneficiary of the Chinese invasion of the Aussie housing market
Wesfarmers Limited (A$43.15, +1.0%) Supermarket chain Coles has unveiled plans to invest $1.1 billion over the next three years building 70 new supermarkets and creating more than 16,000 jobs. Earlier this week, the Australian Workforce and Productivity Agency released a report forecasting 8.9 per cent growth in retail sector employment by 2017, a projected rise of 109,1000 jobs.
Tomorrow’s News Today
China reaffirms its target of 7.5% growth. So it shall be! Although they have admitted they may struggle unless they loosen the purse strings!
China has declared war on smog! Should be about as successful as the US war on drugs or terror.
This doesn’t seem very much somehow. China’s central government will boost defence spending 12.2 percent this year as President Xi Jinping seeks to create a strong military and the navy extends its reach into neighbouring waters. The defence budget is set to rise to 808.23 billion yuan ($131.6 billion).US defence spending is set at around $US575 billion for 2015, less than the peak in military spending of $US691 billion in 2010 but still far beyond the 2001 budget of $US316 billion. Be nice if they did something worthwhile with it. Russia spends $68bn a year but at least they get to win occasionally!
Chinese buyers are currently spending $5.4 billion a year on Australian properties. That does not include the ones that give the money to relatives here to buy houses. The latest FIRB report showed in financial 2013 that there was a total of 5101 approvals to buy existing property worth $6.36 billion, which was up more than 50 per cent from the previous year. Apparently according to a broker 18% of all new house purchases are from the Chinese!
Must be getting to be the top of the market as the Church of England looks to increase its exposure through hedge funds!
An app that allows people to charge members of the public to use their private toilet is being tested at the New Orleans Mardi Gras. Works a bit like AirBnB…more like AirPnP!Buisness tells us to find a problem and come up with a solution. Apparently the ‘Rogue Pee’ is pretty popular during the festival in New Orleans but the punishment is a weekend in the slammer .Hence the App. Not sure facebook or Angry Birds has anything to worry about!
Looks like RasPutin has out manoeuvred all as he takes the freehold of his naval base in the Black Sea
Anyone read this report I would love some feedback. Not sure if anyone is out there sometimes!
There haven’t been any defaults in China’s publicly traded domestic debt market since the central bank started regulating it in 1997,but all that looks set to change as the first one is about to go under. Shanghai Chaori Solar said it may not be able to make an 89.8 million yuan ($14.6 million) interest payment in full on March 7, in what would be the first default of an onshore bond.
And now Uncle Ben print it and they will spend Bernanke is off on the lecture circuit. He was reportedly paid $250,000 for a talk in the Middle east where he told the assembled acolytes that the reason for the GFC was ‘Overconfidence’. Wow, got their monies worth then!
That is all.