What is of Interest in the Market today

The Daily Grindstone Morning Reportsubmitted by The Stone Bridge Group updated 30 July 2010

The Daily Grindstone Afternoon Reportsubmitted by The Stone Bridge Group updated 30 July 2010

The Daily Grindstone Technical Report submitted by The Stone Bridge Group updated 8 July 2010

Extract from Money Morning (First Prudential Markets) updated 30 July 2010

The founder of Virgin Group (VBA), Richard Branson, yesterday responded to recent comments from Qantas Airlines (QAN) chief executive Alan Joyce. Joyce had commented on airline Virgin Blue's plans to target both the leisure and corporate markets, saying that such a strategy could leave an airline as "roadkill." Branson said of Joyce, "there's an element of him running scared, and to be perfectly honest I think he's got every right to be running scared."

Terry Burgess, chief executive of mining company OZ Minerals (OZL) , yesterday said OZ did not intend to make a takeover bid for Sandfire Resources (SFR). OZ purchased a 19.9 percent stake in Sandfire earlier this month, and Mr Burgess met the miner's managing director, Karl Simich, for the first time on Tuesday. Mr Burgess said the meeting went well, adding that "I think we've made a very good investment there."

Beverages group Coca-Cola Amatil (CCL) yesterday opened its new Bluetongue Brewery in New South Wales. The A$120 million facility is the second-largest in the state, with an initial capacity of 50 million litres a year. CCA chief executive Terry Davis said Pacific Beverages, its joint venture with brewer SAB Miller, would reinvest earnings from the brewery for the next two years in a bid to increase market share and capacity utilisation.

Internet service provider iiNet (IIN) yesterday agreed to acquire the retail division of rival AAPT in a deal worth up to A$60 million. The owner of AAPT, Telecom New Zealand, recently rejected a bid for the whole of AAPT from TPG Telecom. As part of the deal, Telecom New Zealand will sell its 17.4 percent stake in iiNet in a placement which has been designed to prevent TPG owner David Teoh from gaining a large stake in iiNet.

Gaming and wagering companies Tabcorp (TAH), Tatts Group (TTS) and Britain's Ladbrokes were yesterday shortlisted by the Victorian Government for the state's monopoly wagering licence. The Minister for Gaming, Tony Robinson, said the Government was "on track" to award the licence by the end of the year. Analysts say the value of the licence is unclear due to a legal challenge to the exclusivity of the licence, with courts to decide whether computer terminals that allow online betting in hotels are legal.

Financial services firm Macquarie Group (MQG) will hold its annual meeting today, with expectations that it will back away from previous guidance stating that all its operating businesses would provide stronger results this year. Macquarie's first-quarter results have been affected by volatile global markets and a relative lack of merger activity. Chief executive Nicholas Moore earlier this week said that market confidence has "dissipated" in the second-quarter of the year.

Commodities

London Metal Exchange

Copper rallied to fresh 12-week highs on the London Metal Exchange Thursday, with demand boosted by firmer equities, a stronger euro and a general rebound in market confidence. The metal, which led a rally across the entire base metals complex, peaked at $7,283 a metric ton before pulling back marginally. LME three-month copper still closed 0.8% higher than Wednesday's PM kerb, at $7,230/ton, with short covering activity exacerbating its rally.

"There is a real rebound in confidence at the moment," said David Wilson, an analyst at Societe Generale in London. "The confidence started back with the positive European PMI data for June, continued with the benign results of the stress tests and is now building more momentum as people focus on growth in Europe and China, and forget about the U.S. concerns."

The metals showed little immediate reaction to both the weaker U.S. durable goods data released Wednesday and the better-than-expected jobless claims on Thursday. Positive comments about the economic outlook made by the People's Bank of China Tuesday, however, have continued to wash over the market throughout the week, participants said.

"Short-covering activity emerged across much of the base metals complex this morning, seeing the market spark into life after a moribund overnight trading session," Standard Bank analyst Leon Westgate said. "A stronger euro and firmer equities appear to be the main reason for the strength, with weak shorts, tempted into the market after prices stalled yesterday afternoon, heading for the exit."

Analysts are, however, still reporting thin volumes, driven partly by the summer lull and partly by some traders who are said to be sticking to the sidelines, waiting for a stronger trend to emerge. While a fresh bout of confidence regarding the economic recovery and the subsequent rise in demand for riskier assets is putting upward pressure on the metals, there is still some nervousness that weaker PMI data out of China Sunday could drag the markets lower again. "The figures are expected to be weaker, but they could cause a bit of panic when they come," SocGen's Wilson said

US Commodities

Crude-oil and natural-gas futures jumped Thursday on a weaker dollar and a general optimism about the outlook for commodities that held even as stocks turned lower. Crude for September delivery added $1.37, or 1.8%, to $78.36 a barrel on the New York Mercantile Exchange. Prices started out in the red, but rebounded as stocks opened higher and held even as equities reversed lower. It was oil's first positive finish in a week.

"Today you are seeing commodities stronger than stocks, and a lot of it has to do with continued weakness in the dollar," said Richard Ross, a technical analyst at Auerbach & Grayson in New York. Investors are also growing more optimistic about the pace of global economic recovery and thus more positive about commodities, he added.

Gold futures Thursday bounced from near three-month lows, but only slightly as investors continued to lighten their holdings of the metal, which has been losing its appeal as a refuge amid calming markets. The most actively traded gold contract, for December delivery, rose $8.80, or 0.8%, to settle at $1,171.20 an ounce on the Comex division of the New York Mercantile Exchange. "Investors are returning to more of the risk trade," said Michael Gross, broker and analyst with OptionSellers.com.

Stronger-than-expected weekly export sales data Thursday pushed up U.S. wheat futures and highlighted concerns about tightening world supplies. Growers in the U.S., the world's biggest exporter, struck deals to export 919,900 tons of wheat for the week ended July 22, according to the U.S. Department of Agriculture. That topped estimates ranging from 250,000 to 450,000 tons. U.S. wheat prices have surged nearly 49% from a nine-month low in June to Thursday's session high as a severe drought has hit the grain belts of the former Soviet Union, which in recent years has emerged as a force in the world grain trade. Nearby September wheat settled 12 cents, or 1.9%, higher at $6.27 1/2 a bushel after hitting a fresh 13-month high of $6.32 on the Chicago Board of Trade.

ICE cotton prices ended higher as the dropping dollar lifted commodities prices across the board. Most-active December cotton settled 0.60 cent, or 0.8%, higher at 76.91 cents a pound. Weaker U.S. economic sales kicked the greenback lower as bullish European data lifted the euro. Commodities across the board rose as futures were weaker in foreign currencies. Strong weekly U.S. exports and sales data also lifted prices.

Raw sugar prices soared to fresh four-month highs Thursday as speculators bought commodities when the dollar dropped, adding to gains from sugar's tight supply scenario. Nearby sugar for October delivery ended 0.63 cent, or 3%, higher at 19.50 cents a pound on ICE Futures U.S.

Market Roundup up-dated 29 July 2010 (extract from Money Morning)

The S&P/ASX 200 ended day higher by 32 points to 4,529.90.

The CPI figures came out yesterday, which showed inflation increased 0.6% for the June quarter, and 3.1% since June 2009. However, it's now 'predicted' that the RBA will keep rates on hold when they meet Tuesday next week.

The Dow Jones Industrial Average closed at 10,497.88, lower by 39 points. The Dow slumped on the Fed's economic outlook as the Federal Reserve's Beige Book reported a slowdown of growth in four of the twelve regional districts. Adding to the disappointment, were the lackluster durable goods figures, which dropped 1%.

The FTSE was 45 points lower ending the session at 5,319.68. The banking sector dragged the index down as many investors took profits from yesterday's gains.

The market also reacted badly to comments from Mervyn King, Governor of the Bank of England (BoE). King warned that a sustained recovery for the UK was uncertain, even though there had been a recent increase in output.

'The wider economic problems around the world underline the fact that we cannot be confident that the recovery in demand, output and employment here in the UK will be sustainable.' He said.

The Nikkei jumped 256 points higher to end the session at 9,753.27.

The price of spot gold in Australian dollars is $1,302.93, while in US dollars it's $1,164.58. The price of silver in Australian dollars is $19.59 and in US dollars it's $17.51.

The Aussie dollar lost nearly USD 0.75 cents after the CPI figures were released.

The Aussie dollar versus US dollar is AUDUSD 0.8926 and against the Japanese Yen it's AUDJPY 78.06.

Crude Oil closed at USD$76.85.


For up to date market information click here...




A daily report from FOCUS SECURITIES. updated 27 July 2010

Extract from Investors Hub updated 30 July 2010)

In Australia, the benchmark S&P/ASX200 Index slipped 5.80 points, or 0.13%, and closed at 4524 points, while the All-Ordinaries Index ended at 4,536, representing a loss of 5.90 points, or 0.13%.

Mining and metal stocks ended in positive territory with modest gains. BHP Billiton added 0.65%, Rio Tinto also added 0.65%, Fortescue Metals advanced 0.46%, Iluka Resources edged up 0.18%, Mincor Resources surged up 4.66%, Minara gained 1.23% and Oz Minerals climbed 2.10%. However, Macarthur Coal bucked the trend and ended in negative territory with a loss of 2.31% and Murchison Metals edged down 0.27%.

Mixed trading was witnessed among bank stocks. ANZ Bank slipped 0.17%, and National Australia Bank edged down 0.04%. However, Commonwealth Bank ended in positive territory with a gain of 0.78% and Westpac Banking Corp advanced 0.41%. Investment banking company Macquarie Group ended in negative territory with a loss of 1.21%.

Mixed trading was witnessed among gold stocks. While Lihir Gold managed to end the session unchanged from previous close, Newcrest Mining ended in negative territory with a loss of 0.18$.

Oil stocks ended in negative territory following drop in crude oil prices in the international market. Woodside Petroleum lost 1.04%, Santos fell 1.74%, Oil Search declined 1.51% and Origin Energy edged down 0.06%. However, ROC Oil Co. ended flat, unchanged from previous close

see Currencies

.

.