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Australian stock market and companies daily report (December 05, 2011)

22.05.12

Customer base Overview

- US stocks finished barely changed in Friday's session to cap a great week after the US unemployment rate unexpectedly dropped and European leaders and key bankers redoubled efforts to tackle the sovereign-debt crisis.

- A stronger-than-expected monthly jobs communiqu and signs of progress were not enough to sustain a triple-digit Dow advance early in the seating. Stocks tracked a swift mid-session decline in the euro, with European cohere yields also changing course mid-session.

- Financial stocks were the strongest performers.

- Worries over the euro zone's reigning debt crisis resurfaced, and the ensuing flight to safety pushed up Resources bond prices for the first time during the week.

- European stocks rose, as comments from the German and French leaders reinforced expectations that a credible drawing to tackle the euro-zone debt crisis may be announced soon.

- German Chancellor Angela Merkel called for clever treaty changes that would allow for closer fiscal union.

- Separately, French President Nicolas Sarkozy also advocated agreement changes and announced that he and Merkel will be meeting Monday in Paris to discuss their intersection proposals ahead of the Dec. 9 summit of all 27 European Union leaders.

- Evil metals closed mostly higher on the London Metal Exchange after broadly auspicious US jobs data offset the impact of a stronger dollar. Oil ended shed weight higher after a report said the US unemployment rate fell under 9%, fuelling optimism over the trade recovery in the world's largest oil consumer.

INTERNATIONAL OVERNIGHT Talk

US stocks finished barely changed in Friday's session to cap a strong week after the US unemployment be entitled to unexpectedly dropped and European leaders and central bankers redoubled efforts to grapple with the sovereign-debt crisis.

The Dow Jones Industrial Average finished with a dying of 0.61 point, or less than 0.1%, at 12019.42, but surged 7% this week, the biggest weekly proportion gain since July 2009. The Standard & Poor's 500 stock-typography fist shed 0.30 point, also less than 0.1%, to 1244.28, but added 7.4% this week, the steepest weekly be nurtured since March 2009. The Nasdaq Composite eked out a rise of 0.73 focus to 2626.93 and ended the week up 7.6%.

A stronger-than-expected monthly jobs article and signs of progress were not enough to sustain a triple-digit Dow advance early in the term. Stocks tracked a swift midsession decline in the euro, with European treaty yields also changing course mid-session.

Even though major indexes were little changed, more stocks rose than mow down on Friday. On the New York Stock Exchange, gainers outnumbered losers by a mix of about three to two. Among Nasdaq-listed issues, winners were in the lead by a ratio of five to three.

The week's stock surge, driven by central banks' infusion of reasonably dollar loans into the global financial system, left both the S&P 500 and the Nasdaq within roughly 1% of breakeven for 2011. The dirty-chip Dow is up 3.8% for the year.

Financial stocks were the strongest performers. JP Morgan Hunt led the Dow with a 6.1% gain, followed by Bank of  America, which added 2%. Among other economic gainers, Citigroup added 4.4% while Morgan Stanley rose 7% and Goldman Sachs Put together climbed 3%. Utilities and health care, viewed as two of the more defensive sectors, led the S&P 500's decliners.

Stocks' beforehand gains were fueled in part by favorable US employment data. US nonfarm payrolls gained 120,000 last month while the unemployment price, obtained by a separate survey of US households, fell to 8.6% in November from 9.0% the aforesaid month, well outstripping forecasts. Previous months' tallies were revised upward.

US Commercial News

Worries over the euro zone's sovereign debt crisis  resurfaced, and the ensuing depart to safety pushed up Treasury bond prices for the first time during the week.

European and Asian Markets

European stocks rose, as comments from the German and French leaders reinforced expectations that a credible lay out to tackle the euro-zone debt crisis may be announced soon.

The Stoxx Europe 600 table of contents rose 0.9% to close at 240.73. The index gained 8.7% for the week.

European stocks pared some gains after gossip the US economy added 120,000 jobs in November.

The euro-zone liability crisis stayed at the forefront of investors' minds.

German Chancellor Angela Merkel called for expert treaty changes that would allow for closer fiscal union.

Separately, French President Nicolas Sarkozy also advocated agreement changes and announced that he and Merkel will be meeting Monday in Paris to discuss their common proposals ahead of the Dec. 9 summit of all 27 European Union leaders.

In putting together, European Central Bank President Mario Draghi hinted that the cardinal bank may take a more active approach if euro-zone nations first agreed to move toward pecuniary union.

The Italian and Greek indexes posted the biggest gains on the day. Greece's ASE Composite table of contents jumped 2.9% to  690.68, with Alpha Bank AE up 2.2%. The FTSE MIB thesaurus rose 1.5% to 15,476. Shares of Intesa Sanpaolo SpA surged 4.6% and Banco Popolare SC gained 3.2%.

Shares of car maker Fiat SpA rose 2.7%. Car shares wait on to be particularly sensitive to the global economic outlook. Among French car makers, Renault SA rose 3.8% and Peugeot SA jumped 3.6% in Paris.

The French CAC 40 rose 1.1% to near at 3,164.95, with banks such as BNP Paribas SA soaring 9.4%, Societe Generale SA gaining 8% and Belief Agricole SA up 5%.  Auto shares also rose in Frankfurt, with Daimler AG up 1.7%, BMW AG up 0.8% and Volkswagen AG up 1.5%.

The German DAX 30 typography fist rose 0.7% to finish at 6,080.68, with Commerzbank AG up 10.6% and Deutsche Bank AG up 5%.

The UK's FTSE 100 forefinger ended 1.2% higher at 5,552.29. Banks supported the index, with a 7.6% improve one's lot for Barclays PLC, a 3% rise for HSBC Holdings PLC and a 3.2% gain for Paragon Chartered PLC.

Asian stocks ended mostly higher, with banks supporting trade in gains in Sydney and Hong Kong, as hopes rose for strong results from the key US jobs account due for release later in the global day.

 
Japan's Nikkei Stock Customary rose 0.5%, South Korea'sKospi was flat, Hong Kong's Humbled Seng Index rebounded  late in the session to end 0.2% higher, but the Shanghai Composite Formula--which closes trade an hour earlier--failed to catch the updraft and ended with a 1.1% damage.

In Hong Kong, banking shares added to their large gains in the too soon session on hopes of Chinese policy easing, driving the Hang Seng Listing into positive territory late in the day.

Bank of China jumped 4.5%, China Merchants Bank gained 2.0%, and HSBC Holdings PLC rose 1.6%.

On the downside, shares of Belle Worldwide Holdings fell 6.6% after reports said shareholder CDH Investments will blow the whistle on 50 million shares of the footwear firm.

Heavyweight automakers were higher in Tokyo. Nissan Motor rose 1.1% after the auto maker posted an almost 20% close with in its November US sales, while Toyota Motor--which posted a more modest rise in US sales--also added 1.1%.

Many Japanese retailers also advanced, with J. Front Retailing gaining 2.1%, and convenience-collection operator Seven & I Holdings adding 2.3%.

In Seoul, Samsung Electronics dropped 2.2% after Australia's top court extended a sales ban on its Galaxy Tab 10.1 computer for at least another week, as the Korean multinational company fights patent-infringement charges from Apple Inc.

The NZX-50 closed 0.2% higher at 3282.39, on increased imperil-on sentiment.

Commodities

Base metals closed mostly higher on the London Metal The Street after broadly positive US jobs data offset the impact of a stronger dollar. Oil ended a little higher after a report said the US unemployment rate fell under 9%, fueling optimism over the money-making recovery in the world's largest oil consumer. Gold finished a touch higher after some investors took profits on the at morning rally sparked by strong US employment data.

The weight of Europe's in hock problems hampered the euro, which shed more than a cent intraday as investors became  circumspect ahead of a critical European Union summit at the end of the coming week.

AUSTRALIAN OVERNIGHT Talk

Australian Markets

The Australian share market is expecting a flat chink today after global shares finished a positive week on a cautions note without thought a sharp fall in the US unemployment rate.

Ahead of the local open, SPI futures were trading 3 points discount at 4,295.

Companies in the News

Telstra (TLS)

Telstra has made a number of changes to a plan governing how it will transport parts of its infrastructure to a new statebacked broadband network, the company said. However, the changes to the so-called Structural Fission Undertaking weren't material to the company, in the context of a shareholder vote recently entranced on the planned separation. The changes "address ACCC and industry concerns," Telstra said, in quotation to Australia's competition regulator, the Australian Competition and Consumer Commission. Telstra was from the start Australia's monopoly state-owned  telecoms company but has been progressively floated since the mid-1990s. The structural fracturing plan would see its control of large parts of the country's telecoms infrastructure transferred to NBN Co., which is tasked with construction a nationwide broadband network for the country. TLS gained 2 cents (0.63%) to $3.20.

Source: Stock Markets Review