Australian Stock Market Report – Midday 2/10/14
By Steven Daghlian, CommSec Market Analyst | February 10, 2014 2:57 PM EST
The Australian sharemarket is improving for the third straight day, with the All Ordinaries Index (XAO) up by 0.7 per cent. The miners are the best performers while weakness from the property trusts, utilities and consumer staple businesses are keeping a cap on the gains.
A surge from global markets (particularly U.S. equities) has been a major catalyst for this morning's rise. A disappointing U.S. jobs report on Friday night wasn't enough to hold back optimistic investors. There were only 113,000 jobs created in Jan; 70,000 fewer than hoped for. This was once again partly blamed on recent bad weather dampening hiring. The jobless rate fell to the lowest level since Nov 2009 (6.6 per cent); largely influenced by a shrinking market. Many economists are convinced the U.S. economy will be an outperformer in 2014.
One of Australia's biggest uranium miners, Paladin Energy (PDN) has suspended production at a mine in Malawi (southeast Africa). It blamed the decision on both a weaker uranium price and significant costs associated with its operation. The price of uranium has halved in value in just three years following Japan's Fukushima Daiichi nuclear disaster in March 2011. PDN shares are 5.1 per cent higher in response to the cost cutting measure.
The major banks are the main contributors to the improvements with the big four adding 12.8pts to the All Ordinaries Index (XAO) this morning. The Australian newspaper reported that NAB is considering a $3.7 billion float of its underperforming UK division. Tomorrow, ANZ Banking Group (ANZ) will be releasing an update on its performance while Commonwealth Bank (CBA) will be announcing its interim profit numbers on Wednesday.
The price of oil (U.S. Nymex) has cracked the US$100/b mark for the first time in a month and a half. The price of gold has edged higher to US$1,265/ounce while base metals also rose modestly. Australia's largest miner, BHP Billiton (BHP) is up 0.89 per cent, while the smaller RIO Tinto (RIO) is 1.08 per cent firmer. Luxembourg-based steel producer, ArcelorMittal posted a US$1.2 billion loss between October-December 2013. On a positive note, the business has issued upbeat profit forecasts for the full year and said it is looking for deals.
The Australian dollar busy US89.4 cents; US2c firmer than a week ago.
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Taylor Swift Named People's Best Dressed Stars Of 2014 [PHOTOS]
- Champions League Results: Barcelona Barely Escapes With A Win, Chelsea Fails To Hold On To The Lead [PHOTOS]
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
Join the Conversation
- Unidentified Benefactor Offers $30M Reward For Identity Of MH 17 Bombers; MAS Criticises Kiwi Author For Suggesting MH 370 Pilot Plotted Death Of Passengers & Crew
- Australian Stock Market Report – Midday September 19, 2014
- Australian Stock Market Report – Morning September 19, 2014
- Global Markets Overview – September 19, 2014
- 2 Reasons Nexus 6 Release Date is Worth the Wait: Android L Data Encryption & Material Design
- Google Release Roundup: New Nexus 6, Nexus 8, Android 5.0 L Launch and Killer Features
- Unofficial ‘Samsung Galaxy Alpha’ Can Now Be Purchased For $700 In The US
- Xperia Z, Xperia ZL, Xperia ZR Android 4.4.4 KitKat Update Guide
- iOS 8 Jailbreak Release Update: Pangu Devs Will Outrace Evad3rs in Rollout of iPhone 6, iPad Unlocker
- Canada Consumer Alert: Costco No Longer Accepting American Express Cards Starting Jan 1
- Sony Xperia E3 vs. Moto G (2014) – Specifications, Features And Price Showdown