A nice start for the Australian market, at the open of trade the ASX 200 hit a 6 year high of 5559.4 points the highest level since June the 10th 2008. Today the early volumes on the market were also solid and by lunch time the All Ordinaries Index was at 5,528.9 points.
Overnight in the US markets moved higher helped by solid quarterly results. The material sector lifted from the start of trade today the sectors up by 1.39%
After falling so far this week gold and oil prices lifted overnight, so far in the Asian session the US$ gold price was up US$2 to US$1,302 an ounce and the oil price was above US$101.50 a barrel.
Fortescue (FMG) shares moved higher again today after its upgrade to expected FY14 production report yesterday now up 2.95% and OZ Minerals Limited (OZL) also higher up 4.6% while BHP Billiton Limited (BHP) added 1.37%
Mount Gibson (MGX) reported June quarter numbers today saying it had shipped 9.7Mwt in FY14, above the MGX and market guidance of 9.0-9.5Mwt, largely due to higher shipments of low grade ore. MGX share price lifted by 3.75%
Woodside Petroleum (WPL) announced its 2Q14 results today. Revenue lifted to US$1,679M, up 24.8% (Y/Y). Production was also stronger at 23.5MMboe up 17.5% due to higher Pluto LNG volumes. WPL also lifted its FY14 production guidance to 89-94 from 86-93mmboe and its share price lifted by 0.9%.
Boart Longyear Limited (BLY) shares fell over 34% yesterday after the company came out of a trading halt and responded to an ASX enquiry on its new strategic plans. Today the share price moved higher in morning trade up 3.4%
Syrah Resources (SYR) today announced it is looking to sell (or spin off) or IPO its Tanzanian exploration business and told the market it will hold an Extraordinary General Meeting (EGM) to allow shareholders to vote on its plans. SYR up 3.89%.
Retailer David Jones (DJS) was placed in a trading halt this morning, pending court hearing on Takeover by South African Woolworths Holdings. DJS shares last traded at $3.98.
Australian Agricultural Company (ACC) held its Annual General Meeting (AGM) today. ACC mentioned that it had been a tough year and that drought conditions contributed to a $37.1Million fall in valuation of AACo’s property portfolio over the year. ACC share price was slightly higher up 0.2%
The Australian Dollar relatively unchanged over the session now at 0.9364
Juliana
Morning Report
(06:10 AEST)
The US Federal Reserve chair, Janet Yellen, has expressed optimism on the economy: ´´I am optimistic about the economy and that´s reflected in the forecasts that are included in the monetary policy report.´´ Further, she noted: ´´...I do think the economy is recovering and that growth is picking up and that we have sufficient growth to support continued improvement in the labour market.´´
In US economic data, production rose 0.2% in June, short of forecasts tipping +0.4%. Producer prices rose by 0.4% in June, above the forecast +0.2% gain. But the core rate (excludes food and energy) rose by 0.2% as expected. Long-term capital flows into the US totalled US$19.4 billion in May.
European shares rose on Wednesday with investors comforted by firm Chinese economic data while there continued to be an easing of concerns about Portugal´s banks. The FTSEurofirst 300 index rose by 1.3% with the German Dax up by 1.4% while the UK FTSE rose by 1.1%. Australia´s major miners were higher in London trade with shares in BHP Billiton up by 2.1% while Rio Tinto rose by 2.8%.
US sharemarkets were higher on Wednesday. Shares in Intel rose by 9.3% after a solid earnings result. And shares in Time Warner rose by 17.1% after Twenty-First Century Fox confirmed that it made a $80 billion offer for the rival. The Dow Jones index rose by 77 points or 0.5% to record highs with the S&P 500 index up by 0.4% while the Nasdaq rose by 10 points or 0.2%.
US treasury prices were mixed on Wednesday as investors weighed testimony by Janet Yellen and mixed economic data. US 2 year yields were steady near 0.488% while US 10 year yields were down 2 points to 2.532%.
Major currencies were mixed against the US dollar in the European and US sessions on Wednesday. The Euro fell from highs near US$1.3565 to US$1.3520, closing US trade near the day´s lows. The Aussie dollar rose from lows near US93.30c to highs near US93.65c before ending the US session near US93.60c. And the Japanese yen held between 101.62 yen per US dollar and JPY101.79, ending US trade near JPY101.72.
World oil prices were mixed on Wednesday. Brent crude fell by US17c or 0.2% to US$105.85 a barrel and the US Nymex price rose by US$1.24 a barrel or 1.2% to US$101.20 a barrel. Nymex rose in response to data showing that US oil stockpiles fell by 650,000 barrels in the latest week. But the Brent price was supported by solid Chinese economic data.
Base metal prices were mixed on Wednesday but gains and losses didn´t exceed 0.8%. Copper fell 0.8% but aluminium rose by 0.7%. Gold prices rose after three days of losses with the Comex gold futures quote up by US$2.70 or 0.2% to US$1,299.80 per ounce. Iron ore was unchanged at US$98.00 a tonne on Wednesday.
Ahead: Detailed job data for June is released In the US, weekly claims for unemployment insurance is released together with housing starts and the Philadelphia Federal Reserve survey.
