Positive lead from the US may push Asian stocks up today
City Index October 5, 2011 9:24 PM
<p>Asian stocks are set for gains today after suffering losses yesterday. There was a sharp turnaround in market sentiment in late US trading that might […]</p>
Asian stocks are set for gains today after suffering losses yesterday. There was a sharp turnaround in market sentiment in late US trading that might be viewed with caution among some traders so gains will be moderate. Italy’s rating downgrade after US markets close won’t help sentiment but this isn’t exactly a shock surprise.
We continue to watch commodity markets, base metals in particular, and now copper was again sold off on an attempt to rally. Lead took the largest losses, down by around 3.2%. The five largest energy and mining stocks in Australia contribute to just over 20% of the ASX200 Index.
Iron ore is overwhelmingly the largest earnings contributor to these mining stocks and will remain in close watch as Asian production volumes moderate.
In Australian corporate news, Telstra has secured a small win in its NBN vote with a key proxy advisor recommending shareholders accept the deal. There will be more interest surrounding Telstra’s $11 billion as the October 18 vote approaches.
More talk about Qantas this morning, as its market cap approaches $3 billion compared to a book value of around $6.2 billion. Many agree that the stock has upside once industrial issues are solved.
Interest around Mirvac after it successfully divested some industrial assets, realising a tidy profit. The deal shows an appetite for strategic Australian assets and the ability of local vehicles to book healthy returns, despite the market gloom.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.