Australia/New Zealand Daybook: Perpetual, Commonwealth Bank Annual Meeting
An overview of activity since markets closed in Sydney and a preview of the day ahead.
--------------Markets Overview (6.30 a.m. Sydney)--------------- EQUITIES
SPI 200 FUTURES 4721 +2 S&P/ASX 200 4710.00 +61.80 NZX 50 INDEX 3289.75 +24.83 DOW JONES INDUS. AVG 11218.99 +86.43 NIKKEI 225 9401.16 -25.55 NASDAQ COMPOSITE INDEX 2501.03 +21.64 FTSE 100 INDEX 5751.98 +10.61 S&P 500 INDEX 1191.04 +7.96 HANG SENG INDEX 23627.91 +110.37 REUTERS/JEFFERIES CRB INDEX 300.31 +3.08
AU 10 YR BOND 5.191 +.046 US 10 YR BOND 2.56 .00 NZ 10 YR BOND 5.098 +.006 US 30 YR BOND 3.91 -.02
CURRENCIES AUD/USD 0.9927 NZD/USD 0.7539 EUR/USD 1.3986 JPY/USD 80.83 AUD/EUR 0.7098 GBP/AUD 1.5864 AUD/JPY 80.25
SPOT GOLD 1341.80 +13.35 COMEX GOLD 1341.50 +16.40 SPOT SILVER 23.6850 +.3975 NYMEX CRUDE 82.40 +.71 ---------------------------------------------------------------
Market action since Sydney’s end of day:
EQUITIES New York: U.S. stocks rose, sending the Standard & Poor’s 500 Index to a fourth straight gain, after the Group of 20 nations pledged to avoid “competitive devaluation” of currencies and investors bet the Federal Reserve will announce further bond purchases next week. *Citigroup Inc. rallied 1.7 percent as Goldman Sachs Group Inc. added the shares to its “conviction buy” list. *CommScope Inc. surged 30 percent after saying Carlyle Group has held talks about acquiring the communications-equipment maker. *The S&P 500 advanced 0.3 percent to 1,187.07 at 2:45 p.m. in New York, adding to three weeks of gains and climbing above its highest close since May 3. *The Dow Jones Industrial Average rose 51.77 points, or 0.5 percent, to 11,184.33.
London: European stocks climbed, led by a rally in basic- resource companies, as Group of 20 finance chiefs heightened speculation the Federal Reserve will announce further stimulus measures next week. *Rio Tinto Group and Xstrata Plc advanced with metals as the dollar tumbled even after the G-20 pledged to avoid “competitive devaluation” of their currencies. *Hermes International SCA surged 15 percent as LVMH Moet Hennessy Louis Vuitton SA agreed to buy a 17 percent stake. *The benchmark Stoxx Europe 600 Index rose 0.3 percent to 267.42 at the 4:30 p.m. close in London.
Tokyo: Japanese stocks fell, led by makers of cars and electronics, as the yen strengthened to a 15-year high, cutting the outlook for export earnings. *Shionogi & Co. dropped 2.7 percent after the drugmaker cut its profit forecast, citing foreign-exchange rates and one-time losses. *The Nikkei 225 Stock Average fell 0.3 percent to 9,401.16 at the 3 p.m. market close in Tokyo. *The Topix index declined 0.4 percent to 821.23, with more than twice as many stocks retreating as advancing among its 1,662 companies.
Sydney/Wellington: Australia’s S&P/ASX 200 Index gained 1.3 percent to 4,710 at the close of trading in Sydney. New Zealand’s market was closed yesterday.
New York: The dollar dropped to a 15-year low versus the yen after a Group of 20 pledge to avoid “competitive devaluation” failed to dispel bets that the Federal Reserve will debase the greenback by announcing more bond purchases. *The U.S. currency dropped as much as 1.2 percent to 80.41 yen, the weakest level since April 1995, before trading at 80.82 at 3:25 p.m. in New York, compared with 81.38 on Oct. 22. *The dollar traded at $1.3987 per euro, compared with $1.3954.
New York: Treasury 30-year bonds rose for a second day, leading a rally in Treasuries, amid speculation on how much debt the Federal Reserve may buy to spur the economy and before data that may show economic growth was below average. *The U.S. is scheduled to sell $10 billion of five-year inflation-linked securities today, the first of four note auctions this week totaling $109 billion. *Thirty-year bond yields dropped five basis points to 3.88 percent at 12:17 p.m. in New York. *Ten-year note yields fell for the first time in four days, shrinking the difference between 2- and 10-year yields.
New York: Gold futures rose the most in more than a week as the dollar fell, boosting demand for the precious metal as an alternative investment. Palladium advanced to a nine-year high. *Gold futures for December delivery rose $13.80, or 1 percent, to settle at $1,338.90 an ounce at 1:55 p.m. on the Comex in New York, the biggest gain for a most-active contract since Oct. 13. *Palladium futures for December delivery rose $17.70, or 3 percent, to $608.80 an ounce on the New York Mercantile Exchange.
New York: Copper rose to the highest price in 27 months as a weakening dollar boosted demand for raw materials as an alternative investment. *Copper futures for December delivery rose 6.6 cents, or 1.7 percent, to settle at $3.863 a pound at 1:19 p.m. on the Comex in New York, after touching $3.8895, the highest level since July 2008.
New York: Crude oil rose for a second day as the dollar slumped to a 15-year low against the yen, bolstering the appeal of raw materials as an alternative investment. *Crude oil for December delivery gained 81 cents, or 1 percent, to $82.50 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange.
WHAT TO WATCH *Perpetual Ltd. annual meeting. *Commonwealth Bank of Australia annual general meeting *Foster’s Group Ltd. annual meeting at 10:30 a.m. in Melbourne *The Australian Bureau of Meteorology releases its seasonal weather outlook for the next three months.
ANALYST RATINGS: Upgrades, downgrades, new coverage *ASX Cut to ‘Neutral’ at JPMorgan *Leighton Holdings Cut to ‘Neutral’ at UBS *Rio Tinto Cut to ‘Reduce’ at Evolution Securities *Ten Network Cut to ‘Hold’ at BBY Limited
BLOOMBERG TV: Selected guests (Sydney time) 11:10 a.m. Hong Kong Exchanges Chairman Ron Arculli 1:10 p.m. Australia Trade Comm Chief Economist Tim Harcourt 1:40 p.m. BNP Senior Investment Strategist Andrew Freris
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