Overseas Market Report – U.S. Stocks Slip on Commodities Drag, Fed Comments
U.S. stocks rebounded off session lows Thursday but still ended lower as tanking oil prices underpinned a selloff in the energy and materials sectors.
Meanwhile, Federal Reserve Bank of New York President William Dudley provided comments suggesting the U.S. was closer to having interest rates raised.
Initial U.S. jobless claims were a seasonally adjusted 276,000 in the period running from 1 November to 7 November, unchanged from the prior week, the Labour Department said.Job openings rose in September to a seasonally adjusted 5.53 million from 5.38 million in August, the U.S. Bureau of Labour Statistics reported. This marks the second-highest level in the history of the series, according to reports.
At the close, the Dow and the S&P 500 were both off 1.4%, while the NASDAQ was down 1.2%.
For Australian ADRs listed on the NYSE, BHP Billiton slipped 81 cents (2.80%) to $28.12, ResMed fell $1.10 (1.88%) to $57.27, Telstra Corporation lost 1 cent (0.05%) to $18.50, Spark New Zealand slipped 18 cents (1.65%) to $10.72 and Westpac added 24 cents (1.11%) to $21.67.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.32% and the 5-year yield was 1.72%.
Shares of Kohl's Corp (KSS) were up after the retailer beat profit and sales estimates for the third quarter. The company reported net income of $120 million, or $0.63 a share, in the quarter, down from $142 million, or $0.70 a share, in the year-earlier period.
Shares of Viacom (VIAB) rose after the entertainment company posted an overall profit in the fourth quarter. However, revenue fell 5.1% in the quarter, as Viacom continues to struggle with sliding domestic advertising revenue.
European markets were sharply lower Thursday after European Central Bank President Mario Draghi said the central bank was considering expanding its quantitative easing program.
The FTSE 100 and the French CAC 40 both fell around 1.9% and Germany's DAX lost 1.1%.
Asian shares were mixed.
The Shanghai Composite fell 0.5%, the Nikkei 225 was flat and the Hang Seng was up 2.4%. India's Sensex added 0.5%.
Australian Market Report – Local Market Expected To Open Lower
Ahead of the local open, SPI futures were 69 points lower at 5,063.
Thursday 12 November – close. The Australian market finished marginally higher after a late fightback, led by a surprise fall in the unemployment rate. The big banks posted moderate gains, offsetting the impact of weakness in resource stocks and retailers. There were mixed results from the sectors; financials gained most significantly while energy lagged behind the rest. The Australian dollar appreciated against most major currencies.
The All Ordinaries rose 1.10 points to 5,182.20 while the S&P/ASX 200 added 3.10 points to 5,125.70.
In This Issue
Santos announced the successful completion of the institutional component of its fully underwritten 1 for 1.7 accelerated pro rata renounceable Entitlement Offer of new FPO shares to raise gross proceeds of $2.5bn. The institutional component of the Entitlement Offer had strong support from its shareholders, raising $1.17bn for the Company with 86% of entitlements available to eligible institutional shareholders taken up. The Institutional Entitlement Offer shortfall book build attracted strong demand from both existing shareholders and other institutional investors clearing at $4.60 which represents a premium of $0.75 above the offer price of $3.85. The retail component of the Entitlement Offer is expected to raise $1.35bn. The Retail Entitlement Offer will open on 17 November 2015 and will close on 30 November 2015. STO slid $1.61 to $4.30.
TPG Telecom (TPM)
TPG Telecom announced that it has successfully completed an institutional placement to raise $300m through the issue of 28.8m new shares to new and existing investors. The placement was priced at $10.40 per share, representing a 3.9% discount to the last close price on 10 November 2015. The Offer received significant demand from both new and existing domestic and international institutional investors, resulting in the Offer being well oversubscribed at the Offer Price. On 11 November 2015, the Company is intending to undertake a Share Purchase Plan whereby eligible existing shareholders will be able to apply for up to A$15,000 of the Company shares. TPM lost 42 cents to $10.40.
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