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Monday, April 4, 2011

Australian stock market and companies report for April 04, 2011 dayli Market Overview

Australian stock market and companies report for April 04, 2011 dayli Market Overview :
Market Overview

- US The Dow Jones Industrial Average kicked off a new quarter by touching the highest level since the summer of 2008, as investors were heartened by signs of stronger job creation in the US and the lowest unemployment rate in two years.

- The DJIA rose for the second straight week and finished Friday with an advance of 0.46%, after hitting a high since June 6, 2008, during the session. The measure was led by Caterpillar, which gained 1.6%, and General Electric, which rose 1.5%.

- The Standard & Poor's 500-stock index added 0.50%, led by industrial and financial stocks. The Nasdaq Composite Index added 0.31%. Those indexes also gained for the second straight week.

- A better-than-expected report on US nonfarm payrolls, a reduction in the US unemployment rate to 8.8% from 8.9%, and Institute for Supply Management data showing manufacturing in expansion mode put investors on the offensive on Friday.

- European markets finished with strong gains on Friday, as most banks rallied after the results of Irish stress tests offered few surprises, while better-than-expected US jobs data also lifted sentiment.

- Crude oil prices surged to fresh 2-1/2 year highs near $108 a barrel on strongerthan- expected US jobs growth in March and weakness in the US dollar.

- Ahead of the local open the June SPI futures were 33 points higher at 4,907.

INTERNATIONAL OVERNIGHT NEWS

The Dow Jones Industrial Average kicked off a new quarter by touching the highest level since the summer of 2008, as investors were heartened by signs of stronger job creation in the US and the lowest unemployment rate in two years.

The DJIA rose for the second straight week and finished Friday with an advance of 56.99 points (0.46%) at 12,376.72, after hitting a high since June 6, 2008, during the session. The measure was led by Caterpillar, which gained 1.6%, and General Electric, which rose 1.5%.

The Standard & Poor's 500-stock index added 0.50% to 1,332.41, led by industrial and financial stocks. The Nasdaq Composite Index added 0.31% to 2,789.60. Those indexes also gained for the second straight week.

In deal news, Nasdaq OMX Group and IntercontinentalExchange offered to buy NYSE Euronext for about $11.3bn, a widely anticipated move that offers a 19% premium to a previous bid by Deutsche Boerse. NYSE Euronext jumped 13%. Nasdaq OMX rose 9.3% and Deutsche Boerse shed 1.7%.

Office Depot slid 9% after the company said it will restate its 2010 financial results after the Internal Revenue Service denied a tax claim, which the company said will reduce fullyear tax benefits by about $80m.

Krispy Kreme Doughnuts fell 21% after the company swung to a fiscal fourth-quarter loss on a charge related to a credit refinancing and weaker margins.

Bill Ackman's Pershing Square Capital Management bought an 8.6% stake in transportation and real-estate company Alexander & Baldwin for $148m, according to a Thursday filing. Shares surged 19%.


Logitech International plunged 19% after the digital device maker trimmed its fiscal-2011 sales and operating income targets, primarily due to weakness in Europe, Middle East and Africa.

US Economic News
A better-than-expected report on US nonfarm payrolls, a reduction in the US unemployment rate to 8.8% from 8.9%, and Institute for Supply Management data showing manufacturing in expansion mode put investors on the offensive on Friday.

Federal Reserve policy got more attention on Friday after Philadelphia Fed President Charles Plosser said the central bank may have to tighten soon, and aggressively, although New York Fed President William Dudley, one of the main advocates of easy monetary policy to support the economy, warned against premature tightening.

European and Asian Markets

European markets finished with strong gains on Friday, as most banks rallied after the results of Irish stress tests offered few surprises, while better-than-expected US jobs data also lifted sentiment.

The Stoxx Europe 600 index rose 1.5% to end at 280.02. For the first quarter, the benchmark gained 0.03%. Ireland's ISEQ index rallied 2.3% to 2,939.58. After Thursday's market close, the Irish central bank said that four lenders will be required to raise EUR24bn in order to meet new capital requirements. The government also announced plans for radically restructuring the banking sector by creating two major banks. Shares of Bank of Ireland soared more than 41% - it will be one of the country's two main banks under the new plan.

Allied Irish Banks PLC rose 11%. It will combine with EBS Building Society to form a second major bank.

Shares of Irish Life & Permanent Group Holdings plunged 59% on news that the company will undergo a significant revamp and that the government will likely take a major stake.

The market barely paused to take note of a downgrade for Ireland from Standard & Poor's Ratings Services. The agency cut the country's sovereign-debt rating to BBB-plus from A-minus but removed the rating from its watch list and said the outlook was stable.

The German DAX 30 index, largely supported by financials, pharmaceuticals and autos, gained 2% to 7,179.81, with shares of Deutsche Bank AG up 3.1%.

Insurer Munich Re rose 2.8%, another big gainer on the DAX.

In Paris, shares of Sanofi-Aventis added 1.6%. Financials also lent support in Paris, where the CAC 40 index gained 1.6% to 4,054.76. Shares of BNP Paribas SA jumped 3.6%, while AXA SA rose 3.2%.

Shares of food retailer Carrefour SA rallied 3.7%, the top gainer in Paris.

In London, the FTSE 100 index gained 1.7% to end at 6,009.92. Shares of Barclays PLC added 4.3%, while Royal Bank of Scotland Group PLC rose 3.8% and Lloyds Banking Group PLC gained 5%. Aside from the positive European sentiment toward the sector, banks got a lift from a report that the UK's Independent Commission on Banking study, due April 11, will be more favourable to the industry than expected.

Chinese stocks rose on Friday to lead most Asian markets higher as data showing an expansion in the country's manufacturing activity in March combined with inexpensive valuations and strong recent earnings to attract buyers.

The Shanghai Composite index climbed 1.3% to 2,967.41 and Hong Kong's Hang Seng index added 1.2% to 23,801.90, after two separate measures of the purchasing managers index for March showed that while manufacturing activity on the mainland was stabilising, price pressures were easing.

Japan's Nikkei Stock Average ended 0.5% lower at 9,708.39 as lingering worries over radioactive groundwater found just outside a troubled reactor building at the Fukushima Daiichi nuclear-power complex prompted investors to lock in recent gains. The benchmark ended the week 1.8% higher.

New Zealand's NZX-50 closed 0.4% higher at 3,452.14 as investor sentiment remained buoyant and Australian markets provided a positive lead.

Commodities
The price of copper slipped on Friday as wary investors shrugged off strong economic data from the US and China, instead focusing on fears that growing stockpiles and further monetary tightening could damp demand for the industrial commodity.

Comex gold futures ended lower, as mixed messages from Federal Reserve officials and a stronger-than-expected US employment data weighed on prices.


Crude oil prices surged to fresh 2-1/2 year highs near $108 a barrel on stronger-than-expected US jobs growth in March and weakness in the US dollar.

AUSTRALIAN OVERNIGHT NEWS

Australian Markets

Local markets are poised to open higher after international markets provided positive leads over the weekend.

Ahead of the local open the June SPI futures were 33 points higher at 4,907.

Companies in the News

BHP Billiton (BHP) and Woodside Petroleum (WPL)

Woodside Chief Executive Don Voelte has denied knowledge of a speculated takeover of the company by BHP, a newspaper reported. The newspaper quoted Voetle saying that the company isn't aware of anything concerning BHP, after previously reporting that banks were advising on a deal. Voelte said that several companies were interested in investing in its $35bn Browse liquefied natural gas project in Western Australia.

Also Falkland Oil and Gas, said it has signed a binding heads of agreement with its joint venture partner, BHP, for BHP to exit from the Northern license area once certain conditions have been satisfied. BHP advanced 12 cents (0.26%) to $46.68. WPL rose 60 cents (1.28%) to $47.40.


Leighton Holdings (LEI)
Leighton is understood to be talking to NBN Co. about constructing Australia's entire $36bn national broadband network, a newspaper reported. The original tender was aimed at selecting several companies to build different sites but the state-owned NBN Co. is now mulling whether one company could do a better job, the report said. NBN Co. said that it has indefinitely suspended its network construction tender after construction firms were unable to provide acceptable prices and terms. LEI rose 17 cents (0.58%) to $29.66.


ASX (ASX)
ASX expects the Foreign Investment Review Board process for approval of Singapore Exchange $8.4bn (US$8.65bn) bid is likely to be extended for the ASX to respond to its questions, a newspaper reported. ASX Chief Executive Robert Elstone said that FIRB and Treasury supplied the company with a "comprehensive" list of questions. "I think the likelihood that we will have answered them all in a 30- day period is quite low," he said. ASX weakened 2 cents (0.06%) to $34.40.

Seven Group (SVW) and Ten Network (TEN)
A court has dismissed a legal action against Ten brought by Seven related to the hiring of James Warburton as Ten's new CEO. A separate action by Seven directly against Warburton is still before the court. SVW firmed 7 cents (0.78%) to $9.06. TEN firmed 2 cents (1.53%) to $1.33.

Austar United Communications (AUN)
Austar said that a newspaper saying that its major shareholder, Liberty Global, had agreed on a price with rival pay television operator Foxtel for a takeover bid was "uninformed and inaccurate". "In particular, no agreement has been reached between LGI and Foxtel, including with respect to price," the company said. Austar said no assurance could be given that discussions between Liberty Global, which owns 54% of Austar, and Foxtel would lead to a proposal being put to Austar or its shareholders. The newspaper reported that Liberty Global and Foxtel had set a price of $1.49 per share for a $1.9bn takeover bid. AUN increased 5 cents (3.42%) to $1.36.

Gunns (GNS)
Gunns said Friday it will suspend operations at a woodchip operation in Tasmania amid volatile global demand driven by a strong Australian dollar and the Japanese earthquakes. An eight week suspension will commence from mid-April. The company said it is currently reviewing operations at the mill consistent with the implementation of its planned exit from native forest-based operations in Tasmania. "During the period of suspended operations the company will be working with industry participants to secure a sustainable future for the mill," Gunns said. GNS fell 1 cent (1.61%) to $0.61.. For the latest updates PRESS CTR + D or visit Stock Market news Today

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