eeg is a no brainer for proactive investors, page-2

Here's the Pre-Market wrap illustrating the sentiment climate in which EEG will be traded today.

Oil and gas energy stocks are in vogue, in the USA.

With interest rates down, and fixed deposit returns down, we can expect more people to be investing in the Share Market, which can be risky, unless people invest in solid companies, well established and building from a solid base, like EEG.

Should be a good day for EEG today, climbing up again after a technical adjustment nearly took out the secondary gap at 20 cents.

All good news coming this month of May, with the AGM also on 31 May.


Market wrap:

Stocks are pointed higher this morning after solid manufacturing data cleared doubts over the strength of the US economy and helped drive the Dow to a four-year peak overnight.

The June SPI 200 futures contract ended the night session 20 points or 0.5% stronger at 4439 as the US figures added to global optimism after yesterday's improvement in Chinese factory output.

The Dow rallied more than 120 points to its highest level since December 2007 before paring its gain to 66 points or 0.5% at the close. The S&P 500 put on 0.57% with companies most exposed to global growth leading the way. The Nasdaq added 0.13%.

The Institute for Supply Management's manufacturing report for April confounded expectations for a slowdown in growth, instead accelerating to its fastest pace in 10 months. The gauge ticked up to 54.8 from 53.4 in March, well above the 50-point level that indicates expansion. Economists had expected the measure to moderate to 53.3.

"The view on the economy has swung from optimism to pessimism of late and this could bring us back to the middle," the head of FX strategy for North America at Wells Fargo told Reuters. "[This manufacturing report] suggests there's no real reason to get too concerned about the path of the US economy at this point."

Energy stocks were the strongest sector as West Texas crude reached a five-week high following the data. Crude for June delivery added $1.12 or 1.1% at US$105.98 a barrel for its fifth rise in six sessions.

TRADING THEMES TODAY

ONWARDS AND UPWARDS: There are plenty of grounds for optimism this morning after yesterday's 0.5% RBA cash rate cut and solid gains in the US and UK overnight. With interest rates on savings accounts/term deposits set to drop, the stock market will become an increasingly attractive option for retirees and other investors, if only by default. That should help bring money of the sidelines and support the market for some time to come. Elsewhere, Shanghai re-opens today after a two-day public holiday and has its first chance to react to yesterday's manufacturing figures. Financials and energy and transport stocks were among the stand-outs in the US overnight. Small caps struggled - the Russell 2000 eased 0.12%.

CHINESE MANUFACTURING PART 2: Today brings the "final" version of the private rival to yesterday's Chinese government manufacturing report. The HSBC final PMI is due at 12.30pm EST but is unlikely to have a big impact unless there is a major deviation from the "flash" or preliminary figure of 49.1 delivered last week.

ECONOMIC NEWS: After yesterday's flurry of news, there are no major scheduled domestic reports today. HSBC's final manufacturing PMI for China is due at 12.30pm (see above). Europe releases employment data tonight. Highlights in the US include the ADP non-farm employment change report, factory orders and crude oil inventories.