Sydney, Nov 27, 2008 (ABN Newswire) - US stocks rose for the fourth-consecutive session, as investors are betting on a government bailout for the two large carmakers, and hoped the worst of the financial crisis was finally over.
The Australian market closed lower on Wednesday. The benchmark S&P/ASX200 index ended down 83.4 points, or 2.3 per cent, at 3540.0, while the broader All Ordinaries dropped 95.8 points, or 2.68 per cent, to 3479.6. Analysts expect the US rally sustain for a while as there are some good signs in the global financial markets.
At 0826 AEDT, the December Share Price Index futures contract on the Sydney Futures Exchange was up 126 points at 3,691.
The Australian dollar has opened higher on improved risk appetite, as Wall Street shrugged off more poor economic data to rally for a fourth straight day. At 0700 AEDT, the Australian dollar was trading at $US0.6528/34, up from Wednesday's close of $US0.6462/65.
Oil prices rebounded overnight after Chinese and European moves to fight the global economic downturn eased fears of a deeper crisis that cuts energy demand. Light sweet crude for January climbed $US3.67 to close at $US54.44 a barrel on the New York Mercantile Exchange.
Key Economic Facts and Figures
Australia's index of skilled job vacancies fell 11.9% seasonally adjusted in November from the previous month, and was 38.3% lower than a year ago, the Employment Department said on Wednesday. Official jobless figures for November stood at 4.3% and some economists predict unemployment could spike next year to 6% or more, although the government has rejected that figure.
The figures from the Australian Bureau of Statistics (ABS) on Wednesday support the view that the Australian economy is better placed than most to weather the storm brewing in the world's economy. Total construction work done in Australia rose by 4.4 per cent in the September quarter in volume terms, seasonally adjusted, well above the median market forecast of a 1.5 per cent rise.
Today the Australian Bureau of Statistics is to release capital expenditure data. The Housing Industry Association publishes new home sales data for October.
M&A News
Rio Tinto(ASX:RIO) shares had their biggest fall in 21 years yesterday as Chinese aluminium giant Chinalco revealed it may raise its stake in the big miner. Chinalco chairman Lu Youqing said the company was considering raising its share in Rio's London-listed entity to 14.99 per cent.
Woolworths(ASX:WOW) has denied the speculation that it is in talks with discount home entertainment specialist JB Hi-Fi(ASX:JBH) over a possible acquisition. The two companies were in talks in August, but the deal fell through because of disagreements over price and maintaining independence of JB's management.
Important Corporate News
MYOB Ltd(ASX:MYO) is confident it will continue to grow through the economic cycle, despite downgrading its earnings guidance for calendar 2008 following a softness in sales. MYOB now expects earnings before interest, tax, depreciation and amortisation (EBITDA) on a like-for-like basis of between A$71 million and A$72 million for calendar 2008.
Telstra Corp.(ASX:TLS) Wednesday continued its negotiating with the Australian government by lodging an incomplete proposal to build a A$9.7 billion national high-speed broadband network. The company is threatening to walk away from the project because of a lack of assurances.
Coca Cola Amatil Ltd (ASX:CCA) posted in August a record net profit of A$171.9 million for the six months to June 30, a 22 per cent increase on the prior corresponding period, saying it was on track for single-digit earnings growth for its second half. CCA chief executive Terry Davis questioned Lion Nathan Ltd's(ASX:LNN) ability to take over the beverage group.
Tower Australia Group Ltd(ASX:TAL) has increased its full year profit by 69 per cent after the life insurer won market share and as worries about the slowing economy prompted people to buy policies. Net profit for the 12 months to September 30 rose to A$68.7 million, from A$40.7 million the year before.
Contractor NRW Holdings(ASX:NWH) said Fortescue(ASX:FMG) had suspended work on the rail line linking its Cloudbreak and Christmas Creek deposits, with work 47 per cent completed.
1. Related Stocks - Mid Market (AEST 1230)
The Australian market closed lower on Wednesday. The benchmark S&P/ASX200 index ended down 83.4 points, or 2.3 per cent, at 3540.0, while the broader All Ordinaries dropped 95.8 points, or 2.68 per cent, to 3479.6. Analysts expect the US rally sustain for a while as there are some good signs in the global financial markets.
At 0826 AEDT, the December Share Price Index futures contract on the Sydney Futures Exchange was up 126 points at 3,691.
The Australian dollar has opened higher on improved risk appetite, as Wall Street shrugged off more poor economic data to rally for a fourth straight day. At 0700 AEDT, the Australian dollar was trading at $US0.6528/34, up from Wednesday's close of $US0.6462/65.
Oil prices rebounded overnight after Chinese and European moves to fight the global economic downturn eased fears of a deeper crisis that cuts energy demand. Light sweet crude for January climbed $US3.67 to close at $US54.44 a barrel on the New York Mercantile Exchange.
Key Economic Facts and Figures
Australia's index of skilled job vacancies fell 11.9% seasonally adjusted in November from the previous month, and was 38.3% lower than a year ago, the Employment Department said on Wednesday. Official jobless figures for November stood at 4.3% and some economists predict unemployment could spike next year to 6% or more, although the government has rejected that figure.
The figures from the Australian Bureau of Statistics (ABS) on Wednesday support the view that the Australian economy is better placed than most to weather the storm brewing in the world's economy. Total construction work done in Australia rose by 4.4 per cent in the September quarter in volume terms, seasonally adjusted, well above the median market forecast of a 1.5 per cent rise.
Today the Australian Bureau of Statistics is to release capital expenditure data. The Housing Industry Association publishes new home sales data for October.
M&A News
Rio Tinto(ASX:RIO) shares had their biggest fall in 21 years yesterday as Chinese aluminium giant Chinalco revealed it may raise its stake in the big miner. Chinalco chairman Lu Youqing said the company was considering raising its share in Rio's London-listed entity to 14.99 per cent.
Woolworths(ASX:WOW) has denied the speculation that it is in talks with discount home entertainment specialist JB Hi-Fi(ASX:JBH) over a possible acquisition. The two companies were in talks in August, but the deal fell through because of disagreements over price and maintaining independence of JB's management.
Important Corporate News
MYOB Ltd(ASX:MYO) is confident it will continue to grow through the economic cycle, despite downgrading its earnings guidance for calendar 2008 following a softness in sales. MYOB now expects earnings before interest, tax, depreciation and amortisation (EBITDA) on a like-for-like basis of between A$71 million and A$72 million for calendar 2008.
Telstra Corp.(ASX:TLS) Wednesday continued its negotiating with the Australian government by lodging an incomplete proposal to build a A$9.7 billion national high-speed broadband network. The company is threatening to walk away from the project because of a lack of assurances.
Coca Cola Amatil Ltd (ASX:CCA) posted in August a record net profit of A$171.9 million for the six months to June 30, a 22 per cent increase on the prior corresponding period, saying it was on track for single-digit earnings growth for its second half. CCA chief executive Terry Davis questioned Lion Nathan Ltd's(ASX:LNN) ability to take over the beverage group.
Tower Australia Group Ltd(ASX:TAL) has increased its full year profit by 69 per cent after the life insurer won market share and as worries about the slowing economy prompted people to buy policies. Net profit for the 12 months to September 30 rose to A$68.7 million, from A$40.7 million the year before.
Contractor NRW Holdings(ASX:NWH) said Fortescue(ASX:FMG) had suspended work on the rail line linking its Cloudbreak and Christmas Creek deposits, with work 47 per cent completed.
1. Related Stocks - Mid Market (AEST 1230)
---------------------------------------------------- Code % Change Volume Turnover Low High ---------------------------------------------------- ASX:RIO +2.21 5,449,505 $270,758,916 4240 4475 ASX:TLS -1.67 22,406,044 $92,999,449 409 421 ASX:WOW +.91 2,214,280 $56,250,895 2488 2569 ASX:FMG +6.39 4,457,032 $8,375,742 181.5 194.5 ASX:LNN -.33 257,051 $2,281,266 880 895 ASX:JBH +6.62 225,736 $1,797,212 767 817 ASX:TAL +11.45 253,758 $536,391 200 218 ASX:NWH +1.78 1,190,828 $349,130 28 31 ASX:MYO +1.57 28,666 $27,032 94 96.52. Top 10 ASX on Turnover - Mid Market (AEST 1230)
---------------------------------------------------- Code % Change Volume Turnover Low High ---------------------------------------------------- ASX:BHP +4.95 16,197,378 $476,052,731 2852 2980 ASX:RIO +2.35 5,494,033 $272,673,238 4240 4475 ASX:QBE -4.69 7,921,780 $172,869,522 2162 2199 ASX:TLS -1.91 22,406,169 $92,999,962 409 421 ASX:WBC -.42 4,784,111 $80,616,214 1648 1714 ASX:NAB +.4 3,226,542 $65,488,151 1962 2015 ASX:WOW +.91 2,214,280 $56,250,895 2488 2569 ASX:ANZ -1.28 3,423,438 $48,831,486 1384 1458 ASX:CBA +.12 1,409,624 $47,053,526 3270 3356 ASX:CSL +1.39 888,506 $29,237,086 3243 3325
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