The market is up 40. The SFE futures suggested a 31 point rise in the market this morning. Resources up 1.7% with BHP and RIO up 2.1% and 0.6%. Energy stocks up 0.6%. Financials up 1.4% — banks all up — ANZ up 2.3%.
The Dow was up 103. Up 134 at best — down 54 at worst. US Markets breathed a sigh of relief on strong demand for a 7-year bond auction but concerns remain about the Government’s massive issuance of Treasuries and high yields. Financials up 3.6%. Housing delinquencies up. April home sales fell short of expectations. Builders and retailers down. Continuous jobless claims remain at record levels at 6.8m. BHP and RIO both up in ADR form overnight — 3.27% and 3.70% respectively. Metals up. Oil up. Gold up.
Quiet day to finish off the month…
- Primary Health Care (PRY) up 6% as their institutional placement is increased to meet demand.
- Dioro Exploration (DIO) directors rejected the $49m Avoca Resources (AVO) takeover bid.
- Mount Gibson Iron (MGX) has reached agreement with long term iron ore contract customers inline with RIO’s price agreements with Nippon Steel.
- BlueScope Steel (BSL) attributes share price rise to brokers promoting cyclical stocks and a “V-shaped” economic recovery.
- Qantas (QAN) said their revenue seat factor was up 1.5 points to 80.4% in April.
- CSL Ltd (CSL) received a US$180m order from the U.S. government for an influenza vaccine.
- Biota Holdings (BTA) note the Australian government has added 1.6m Relenza courses to their stockpile.
- Macquarie Group (MQG) to acquire energy advisor, Tristone Capital Global, for $131m.
- Heron Resources (HER) strikes heads of agreement with China’s JEC.
- Lend Lease (LLC) note subsidiary Bovis wins a $900m Sydney Water contract.
- Bannerman Resources (BMN) out of a trading halt after their $30m share placement.
- Ausenco Ltd (AAX) successfully raised $40.5m in their oversubscribed institutional placement.
- Cudeco Ltd (CDU) in a trading halt.
- Gunns Ltd (GNS) appoints a new CEO.
- Tower Ltd (TWR) reported solid adjusted 1H NPAT up 5% to $21.5m on-year driven by general insurance.
Other…
- Macquarie Group cut CSL Limited’s (CLS) FY10 earnings estimate by 8.7% and boost FY11’s by 1.2% to reflect the FTC’s blocking of the $3.1bn Telecris deal. Maintains OUTPEFORM. UBS cuts CLS’s target to 4100c from 4300c saying CSL’s court challenge will drag thing out for five months — keeps BUY.
- UBS cuts Primary Health’s (PRY) target to $6.10 from $6.33 reflecting PRY’s capital raising.
- UBS Warburg maintain their Neutral recommendation on Fortescue Metals (FMG) and cut their target price to 270c from 275c despite saying FMG’s operations are showing signs of improvement.
The Dow Futures suggest a 22 point fall on Wall Street tonight.
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