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MARKET TALK: Australian Equities Roundup 17/05/06 09:47:00+

0800 [Dow Jones] Momentum accounts have now come into fray after AUD/USD
slumped below its 20-day moving average at 0.7610/15, suggesting further
downside can be expected, RBC Capital Markets strategist Sue Trinh says. Pair
now 0.7574. RBC has technical target of 0.7500/30. AUD/NZD also under pressure,
slipping below 1.2200 this morning. Failure to regain 1.2220 opens up 1.2140
target, Trinh says. (OGB)

0818 [Dow Jones] Qantas (QAN.AU) will fire 1,000 workers this year to cut
costs by A$100 million, Australian Financial Review reports. CEO Geoff Dixon
told staff the airline had "reluctantly" decided to cut management, support and
administration positions by 20%, because the annual cost of jet fuel had doubled
to A$3.8 billion in the past two years, AFR says. QAN last trade A$3.29. (ABH)

0826 [Dow Jones] Strong U.S. dollar, weaker global growth prospects and gold
back below US$700 again put focus on downside for Australian dollar, ANZ Bank
strategist Tony Morriss says. Pair currently lower at 0.7578. Morriss expects
support for AUD/USD today around 0.7560 but 0.7500 is first target on
correction. AUD/NZD, currently 1.2163, is also in correction mode below 1.22, he
says. (OGB)

0916 [Dow Jones]S&P/ASX 200 commodity leads bearish. DJIA down 1.9% at
11205.61 as U.S. core CPI rose 0.3% vs 0.2% consensus. U.S. 10-year bond yield
rose 5.5 bps to 5.16%. AUD/USD fell 86 points to 0.7585. Nymex crude down 84
cents at US$68.69. Spot gold up US$0.20 at U$692.50. LME copper down 2.4% at
A$8,120, zinc down 1.2% at US$3,430, aluminum down 2.5% at US$2,895, nickel up
2.7% at US$21,000. BHP (BHP.AU) ADR at A$28.98 from A$30.11 locally. BHP fell
3.9% in London. Rio (RIO.AU) fell 5.1%. Brambles (BIL.AU) fell 3.5%. SFE futures
down 102 points at 5112.0. S&P/ASX 200 last 5217.5. (DWR)

0918 [Dow Jones] News Brazil's CVRD (RIO) agreed same terms with Japan steel
mills on 2006 iron ore contracts as it did with Germany's ThyssenKrupp Monday,
likely well received by other major producers BHP Billiton (BHP.AU), Rio Tinto
(RIO.AU) as they conclude talks with China mills. CVRD says Japanese agreed to
19% jump on fines, 3% dip on pellet, which some analysts saying suggests 12-15%
average hike. Meanwhile China steelmakers dismissing notion ThyssenKrupp
settlement is benchmark; CVRD previously said pushing for 24.6% hike. (JAD)

0918 [Dow Jones] STOCK CALL: Goldman Sachs JBWere says while Transurban
(TCL.AU) agreement with Victorian state government to jointly fund upgrades and
improvements to West Gate-City Link-Monash Freeway corridor are a positive, "we
believe they are largely required to meet our current medium-term forecast
traffic growth" for TCL. Revises capex requirements and traffic flow forecasts
both during and after construction project, plus adjusts for buy-out of
concession notes, lifting TCL valuation to A$6.22 from A$6.08. Retains
marketperform in short term, sell in long term recommendation. TCL last A$6.70.
(WEL)

0927 [Dow Jones] STOCK CALL: UBS says Macquarie Bank (MBL.AU) A$700 million
capital raising adds to EPS based on ROE assumptions. With broker forecasting
10% ROE on new funds, says new capital is about 2% accretive to FY08, 1% to
FY09. "This is well below the current ROE of 21%, and should MBL generate 20%
ROE, it will add a further 6% to our forecasts." Has Buy rating on stock,
A$82.50 price target. Shares last at A$69.18. (RBT)

0934 [Dow Jones] EARNINGS WATCH: Lion Nathan (LNN.AU) reports a 10% rise in 1H
net profit to A$148.9 million in line with consensus expectations of A$147.5
million. Declares 19 cents dividend, 30 cent special dividend and an on market
buyback of up to 5% of issued capital. Says on track for net profit of A$258
million for FY06. Buyback suggests potential acquisition of NZ's Independent
Distillers may be off the cards. Last trade A$8.20. (SVM)

0946 [Dow Jones] BHP Billiton (BHP.AU), Rio Tinto (RIO.AU) decline comment on
whether CVRD's (RIO) 2006 iron ore contract settlement with Japan mills
overnight gives them upper hand at China negotiating table; except to say talks
with customers are ongoing. CVRD agrees same terms with Japan as did with
Germany's ThyssenKrupp; i.e. 19% jump on fines, 3% dip on pellet. Of CVRD-Japan
settlement, industry source says: "Traditionally that pricing process has set
the benchmark." As fines represent lion's share of total market, 19% figure
likely ringing in Chinese mills' ears; although predictably they dismiss its
relevance.(JAD)

(END) Dow Jones Newswires
17-05-06 2347GMT
Copyright (c) 2006 Dow Jones & Company, Inc.(AP-DJ-05-17-06 2347GMT)