Overseas Market Report – U.S. Stocks End Mixed after Yellen Testimony
U.S. stocks finished mixed Wednesday on the heels of Federal Reserve Chairwoman Janet Yellen's testimony before a congressional committee.
In prepared remarks, Yellen said financial conditions "have become less supportive to growth" and acknowledged "downside risks" largely stemming from uncertainty about the health of the Chinese economy.
The statement seems to indicate the central bank is unlikely to raise rates again at its March meeting.
At the close, the Dow was down 0.6%, the S&P 500 was flat and the NASDAQ was up 0.4%.
Disney (DIS) reported top- and bottom-line quarterly results that came in ahead of Morningstar's expectations, mostly on the strength of The Force Awakens. However, the media networks segment reported lower-than-expected operating income.
Time Warner (TWX) posted earnings that were ahead of expectations, but revenue was below views. HBO was a bright spot in the quarter while the Warner Brothers Movie studio was weaker. The firm also boosted its dividend by 15% to US$1.61 and approved US$5 billion in share repurchases.
For Australian ADRs listed on the NYSE, BHP Billiton slipped 14 cents (0.64%) to $21.65, ResMed added 56 cents (0.98%) to $57.74, Telstra Corporation lost 43 cents (2.20%) to $19.32, Spark New Zealand slipped 37 cents (3.31%) to $10.82 and Westpac remained flat at $20.26.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 1.71% and the 5-year yield was 1.16%.
European markets broke a seven-day losing streak on Wednesday.
The FTSE 100, French CAC 40 and Germany's DAX were up 0.7%, 1.6% and 1.5%, respectively.
In Asia, the Nikkei 225 fell 2.3%, sending Japanese shares to their lowest levels since 2014. India's Sensex lost 1.1%. Chinese share markets remained closed for Lunar New Year celebrations.
Australian Market Report – Local Market Expected To Open Higher
Ahead of the local open SPI futures were 19 points higher at 4,729.
Wednesday 10 February – close. The Australian market tumbled after a flat open this morning, following soft leads from offshore share markets and commodity markets. The negativity continued throughout the day, despite a small rebound in late afternoon, with major banks and resource stocks experiencing hefty losses. All sectors posted negative results; with health care being the worst performer. The Australian dollar fell against most major currencies, with the exception of the New Zealand dollar and Canadian dollar.
The All Ordinaries dropped 56.10 points to 4,826.50 while the S&P/ASX 200 fell 56.40 points to 4,775.70.
In This Issue
Boral announced results for the half year to 31 December 2015. The Company reported revenue of $2.2bn, down 4% from 1H FY2015. EBIT is $200m whereas Net profit after tax is up 31%. It has reported EPS of 18.2 cps, up 28% from previous period. There is a substantial improvement in LTIFR, down 29% to 1.2 in 1H FY2016. Net debt of $1.03b increased by $208m since 30 June 2015, largely due to on-market share buy-back and translation of US$ denominated debt. Total capex is $115m, up on $94m capex in 1H FY2015. Earnings growth reflects penetration of Sheetrock and adjacent products, cost reductions, including lower fuel costs and foreign exchange benefit. BLD added 18 cents to $5.32.
Recent Contacts & Presentations
Troy Resources (TRY), Northern Star Resources (NST), Regis Resources (RRL), Medusa Mining (MML), Doray Minerals (DRM), Beadell Resources (BDR), Red 5 (RED), Kingsgate Consolidated (KCN), OBJ (OBJ), Sino Gas & Energy Holdings (SEH), TFS Corporation (TFC), Paragon Care (PGC), Austal (ASB), Orbital Corporation (OEC),Energia Minerals (EMX), Berkeley Energia (BKY) , Finders Resources (FND), 4DS Memory Ltd (4DS) , Bionomics Ltd (BNO)