Overseas Market Report – U.S. Stocks Finish Higher after Oil Rises
U.S. stocks closed higher Monday after crude oil futures rose up sharply, as a drop in the number of U.S. oil rigs boosted hopes that supply was coming down to meet demand.
The Dow Jones Industrial Average jumped more than 200 points, carried by the 7% jump by oil futures, which underscored how closely linked the fates of oil prices and stocks remain.
At the close, the Dow was 1.4% higher, while the S&P 500 and the NASDAQ were both up around 1.5%.
For Australian ADRs listed on the NYSE, BHP Billiton rose 131 cents (5.46%) to $25.29, ResMed gained 36 cents (0.61%) to $59.26, Telstra Corporation lifted 15 cents (0.79%) to $19.16, Spark New Zealand rose 18 cents (1.65%) to $11.09 and Westpac gained 66 cents (3.12%) to $21.84.
At 8:00 AM (AEDT), the 10-year Treasury note yield was 1.76% and the 5-year yield was 1.24%.
HSBC (HSBC) reported fourth-quarter results that were below expectations. Management said slowing growth in Asia and market volatility weighed on results and was likely to continue to do so throughout the year. The firm also disclosed that it is under investigation from the SEC over its hiring practices in Asia.
European markets were also higher on the day as the French CAC 40 rose 1.8% and Germany's DAX lifted 2%.
The FTSE 100 rose 1.5% as the pound dropped against the dollar after London Mayor Boris Johnson came out in favour of a U.K. exit from the European Union.
Asian shares gained on the day.
The Shanghai Composite was up 2.3%, while the Nikkei 225 and Hang Seng each rose 0.9%. India's Sensex was up 0.3%.
Australian Market Report- Local Market Expected To Open Higher
Ahead of the local open, SPI futures were 39 points higher at 5,000.
Monday 22 February – close. The ASX 200 had a good start to the week, finishing above the 5,000-point mark for the first time in three weeks, with a rally in major miners leading the way. The index heavyweight Brambles soared today after reporting a jump in half-year earnings, whilst the big banks experienced mixed results. Most sectors performed positively, with only utilities ending lower. The Australian dollar appreciated against most major currencies.
The All Ordinaries rose 48.30 points to 5,056.60 while the S&P/ASX 200 gained 48.40 points to 5,001.20.
In This Issue
Brambles (BXB)
Brambles announced results for the half-year ended 31 December 2015. At constant currency, sales revenue was up 8%. Underlying Profit, which is a non-statutory measure of operating profit that excludes significant items, was US$474m, down 2%. Underlying Profit after tax was US$296m, down 2% (up 10% at constant currency). Return on Capital Invested was 14.7%, down 0.8% points (down 0.3% points at constant currency) reflecting the impact on capital invested of acquisitions since the start of 1H15. Cash Flow from Operations was US$260m, down US$8m. The Board has declared an interim dividend of 14.5cps, up 0.5c on each of the 2015 interim and final dividends, franked at 25% and payable on 14 April 2016 to shareholders registered on 11 March 2016. BXB lifted 94 cents to $12.00.
UGL Limited (UGL)
UGL reported net profit after tax of $18.5m (HY15: $11.9 m) for the half year ended 31 December 2015. Operating revenue was $1.2bn (HY15: $1.2bn) and EBIT was $34.9 m (HY15: $28.7m). The Company and CH2M Hill project scope for Ichthys CCPP is 72% complete, with the construction component of the project 52% complete. Revenue in Rail & Defence was $482.5m in HY16, down on the comparative period largely due to reduced locomotive sales in the coal sector. The Board does not intend to declare a dividend for the 2016 financial year. The NorthConnex contract was secured during the period, where the Company, in alliance with the Lend Lease Bouygues JV, will deliver the mechanical, electrical, control, fire and communication systems for the new motorway. UGL added 26 cents to $2.66.
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)
