Overseas Market Report – U.S. Stocks End Mixed on Energy Concerns
U.S. stocks gave up their gains in afternoon trading to end mixed Tuesday, amid a renewed decline in U.S. energy prices that highlighted ongoing investor concerns about the troubled sector.
Investors were also focused on data out of China showing the country posted its weakest annual pace of growth in a quarter century. China said its GDP grew 6.8% in the fourth quarter and 6.9% for all of 2015.
The data has boosted hopes the Chinese government will launch a fresh set of stimulus measures.
WTI oil futures were lower while Brent futures rose as the market absorbed the confirmation that sanctions on Iran were lifted.
At the close, the Dow was up 0.2%, the S&P 500 was flat and the NASDAQ was 0.3% lower.
Johnson & Johnson (JNJ) announced it is cutting 3,000 jobs in its medical device division in the face of slumping sales. Shares rose over on the news.
Morgan Stanley's (MS) profit rose in the fourth quarter on the back of merger advice and stock trading. The firm made 39 cents per share in the quarter, above the 33 cents a share expected by analysts. Management also announced a US$1-billion annual cost cutting plan.
UnitedHealth (UNH) reported a drop in fourth-quarter earnings but results were above expectations. The insurer has been facing headwinds from losses on plans sold on the healthcare exchanges.
For Australian ADRs listed on the NYSE, BHP Billiton slipped 13 cents (0.64%) to $20.06, ResMed gained 37 cents (0.69%) to $53.66, Telstra Corporation added 42 cents (2.30%) to $18.50, Spark New Zealand gained 32 cents (3.03%) to $10.88 and Westpac added 42 cents (2.01%) to $21.33.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.05% and the 5-year yield was 1.48%.
European markets moved higher.
Germany's DAX, the FTSE 100 and the French CAC 40 were up 1.5%, 1.7% and 2%, respectively.
Asian shares moved higher on Chinese stimulus hopes.
The Shanghai Composite rose 3.2%, the Hang Seng was up 2.1% and the Nikkei 225 tacked on 0.6%. India's Sensex gained 1.2%.
Australian Market Report – Local Market Expected To Open Lower
Ahead of the local open, SPI futures were 19 points lower at 4,829.
Tuesday 19 January – close. The Australian market opened flat this morning, following little changes on offshore markets. Local stocks seesawed into positive territory, buoyed by major gains from the big four banks and miners, snapping a three-day losing streak. There were mixed results from the sectors; health care posted the biggest gains while consumer staples were the biggest laggard. The Australian dollar appreciated against most major currencies.
The All Ordinaries rose 43.30 points to 4,955.10 while the S&P/ASX 200 added 44.40 points to 4,903.10.
In This Issue
SkyCity Entertainment Group (SKC)
SkyCity Entertainment Group announced that it has continued the strong financial performance in the first half of FY16. The expected 1H16 performance at both the EBITDA and NPAT levels is significantly up on that achieved in the pcp. This is due to a combination of factors, including: Strong trading performances by all NZ businesses; Strong growth in turnover in the International Business, with turnover slightly above $7bn for the period; Significant cost savings achieved at the Adelaide Casino and Significantly lower funding costs (after deduction of capitalised interest). The reported results are expected to differ from the normalised results primarily due to adjustments for the actual win rate in the International Business and the write-off of various non-current assets. SKC soared 30 cents to $4.20.
Rio Tinto (RIO)
Rio Tinto released solid fourth quarter production results reported that global iron ore shipments were in line with 2015 full year guidance of around 340mt. Global iron ore production in 2016 is expected to be around 350mt. Continued strong performance in bauxite exceeded full year guidance of 43mt with record third party shipments of 26.6mt. Aluminium production was in line with 2014 with record annual production at nine smelters offsetting lower production from Kitimat as the modernised and expanded smelter was commissioned. Mined copper production was in line with full year guidance of 510 thousand tonnes as de-weighting and de-watering activities at Kennecott resulted in lower production in 2015, which was partly offset by a 36% increase in production at Oyu Tolgoi from higher grades and throughput. RIO lifted 13 cents to $38.82.
Recent Contacts & Presentations
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