SPI FUTURES +14
US EQUITIES – S&P500 +8 or 0.32%, Dow Jones +57, Nasdaq +35,
Key themes –
- Fed meeting gets underway tonight. Rate rise universally expected. 12.4% chance of a 50 point rise.
- Terrorist attack in NY – an explosion rocked the Port Authority Bus Terminal, one of the city’s busiest commuter hubs.
- Sector shift moved back in favour of techs versus financials
- Energy sector outperforms on oil price rise
EUROPEAN MARKETS – Mostly lower – STOXX -0.05%, German Dax -0.23% and French CAC -0.23%. UK FTSE +0.80% the exception
- The US dollar closed little changed at 93.96.
- The Aussie dollar is a little stronger at US75.28c.
BONDS – US bonds little changed – 2-yr: +2 bps to 1.82%, 5-yr: UNCH at 2.15%, 10-yr: UNCH at 2.39%, 30-yr: -1 bp to 2.77%
- WTI oil was up 1.1% or US63c to US$57.99 on a shutdown to a North Sea pipeline. The pipeline carries up to 450kbpd and has been operating at reduced capacity over the last few days, prior to the shutdown.
- Gold futures steady, down US$1.50 or 0.1% to $1,246.90, ahead of the Fed.
- Iron ore up US60c to US$69.08
- LME metals rebounded – Copper +1.51%, nickel +2.65%, aluminium -0.42%.
NEWS, DATA AND POLITICS
- US economic data – October Job Openings and Labor Turnover Survey 5.996 million (previous: 6.177 million)
- Bitocoin began trading – up more than 16% on first day of trading. Reports than some Americans are taking out mortgages to speculate in the cryptocurrency.
- Economic Data – Housing prices, new home sales and NAB business confidence.
- Westfield (WFD) – Trading Halt. “Westfield is in discussions in relation to a potentially significant corporate transaction, which is pending announcement to the market.”
- Transurban (TCL) – Has closed the contract with the Victorian State Government to build, toll and operate the West Gate Tunnel Project till 2045. Will raise $1.9bn to fund the West Gate tunnel project. The raising will be at $11.40 per new security in a three for 37 entitlement offer.
- ANZ – Sale of life insurance business to Zurich for $2.85bn. Will involve a 20 year distribution agreement. ANZ will keep mortgage insurance, general insurance distribution and financial planning. Accounting loss on sale of $520m and transaction costs of $75m.
- Asaleo Care (AHY) – Profit Warning – company expects to report full year underlying EBITDA of $124-$125m and profit after tax in a range of $59-$60m.
- James Hardie (JHX) – Ex-dividend 10.45c
- A2 Milk (A2M) – Bell Potter upgraded to Buy.
MARKET PRICES (as at 10:45am)