Although Chinese manufacturing data came out weak, for the 4th month in a row, equity markets eventually rallied throughout Asia, with the S&P/ASX 200 Index actually finishing flat for the day after a sell off in the afternoon to 4293 points, in a very busy corporate earnings day (a reason why I’m writing this at 6pm and not 4pm!)
Other Asian markets were more positive, with Japan’s Nikkei 225 up 1% to 9554, well above resistance at 9000 points and building on its breakout whilst the volatile Hang Seng finished flat whilst the Shanghai Composite was up 1% to 2403 points, now clearly breaking out of its long term downtrend channel:
The AUD remained resilient, actually gaining some points in late trade on news of Kevin Rudd’s second and now self-inflicted stab in the back wound, remaining just below 1.07, with the US Dollar Index remaining stable at 79.2 points, gaining ever so slightly.
WTI crude remained stable, staying over $106USD per barrel, whilst gold was steady, now getting slightly bid up in late trade, at $1759USD an ounce, whilst in AUD terms the shiny metal is currently at $1645AUD an ounce, gaining more than $30 for the day.
Movers and Shakers
A mixed board, with the energy sector gaining the most, up 1.7% (mainly due to Woodside, more below) with consumer staple stocks sold off down over 1% – amongst some very big moves due to today’s EPIC earnings releases. I’m up to my neck in them and will report soon – the big standouts were Seek, up 10% on record profits, CSL having a great day, up nearly 3% and Suncorp lifting profit, but shares sold off.
Checking out the ASX8 (the top four banks and miners who collectively provided more than 90% of profit growth last year), ANZ finished up 0.6% breaking past resistance above $22 per share on the daily charts. If it closes above this level at the end of thew week, the next target is circa $25 per share, in my opinion.
The big brother of banks, the Commonwealth (CBA) up slightly with the market trying to push the country’s largest building society up above $50 again to maintain its upward trend:
National Australia Bank (NAB) was up only 0.2% and still proving to be the worst price performer, continuing to go sideways whilst Westpac (WBC) has gained 0.5% today, also still technically in a sideways funk like NAB.
Quickly checking out Macquarie (MQG), the Millionaire Factory was off by just over 1%, the silver doughnut still building on its recent breakout and just above its long term moving average. Probably too late to buy the previous dips on a risk/reward basis and in my opinion, way above value – even the FY13 value of around $24 per share.
To the holes, where BHP Billiton (BHP) finished flat for the day and going sideways in the medium term, stuck in a trading range with a potential bottom at $34 a share. Without a big rise in the Big Australian don’t count on the broader market moving anytime yet.
Its “twin” Rio Tinto (RIO), was down nearly 1% and also remains in a trading range after trying to break free of its bearish downward bias, with resistance at $70 per share and support at $59 a share.
Gold miner Newcrest Mining (NCM) jumped again, over 2% this time, now up nearly 20% in its short term uptrend since the Janauary low and just peeking above its long term moving average:
To finish out the ASX8, Woodside Petroleum (WPL) was up 2.5% releasing its profit results to the market today. It looks like investors are matching the gains in WTI oil prices with WPL, as the weekly chart shows a possible double bottom with a breakout likely above $37 a share:
The overnight futures for the ASX200 are flat alongside other equity futures are bullish. Tonight’s dataflow includes European Flash Manufacuting and Services PMI, and the ongoing saga that is the “finished” European debt drama.