Markets Live: Dollar drops below US93c

The US and EU have already imposed measures to curb Russia’s access to bank financing and advanced technology. 9:10am: Local shares appear set for a flat open with Wall St closed overnight and Euro shares lower, as the iron ore price heads towards five-year lows and ahead of the RBA’s cash rate decision. • AUD at 93. 30 US cents, 97. 33 Japanese yen, 71. 07 Euro cents and 56. 19 British pence. • In Europe, Euro Stoxx 50 +0. 1%, FTSE +0. 1%, CAC -0. 03%, DAX +0. • Iron ore slips 0. 9% to $US87. • Brent oil down 0. 4% to $US102. • Australia: RBA cash rate decision and statement at 2:30 AEST;  current account balance, net exports at 11:30; building approvals. • US: ISM manufacturing index, construction spending. • Flight Centre names Gary Smith as chairman. • Macquarie leads for $1. • OzForex rated a new buy at Deutsche Bank; price target $2. 95. • Tap Oil says received writ from Apache Oil for claim of $US4. 2m. • Deutsche Bank has kept its “buy” rating on UGL, with a 12-month target price of $8. 21 a share given its current cheap valuation, low gearing, pending capital return and potential for large contracts wins. • Morningstar has a “reduce” recommendation on Cabcharge and a $3. 90 fair value share price expectation. 9:10am: Good morning and welcome to the Markets Live blog for Tuesday.

Nicol said that “the focus has turned to non-residential construction activity to fill the void” left by the passing of the mining investment boom. “But despite much talk at both federal and state government levels, the long lead times and political nature of these projects means real activity is still some way off,” he said. “We remain optimistic that the activity levels will eventually pick up in the area and see opportunities for companies such as Lend Lease to participate. 12:06pm: Australia‘s current account deficit widened out to $13. 7 billion in the June quarter, from $7. 8 billion at the end of March, as exports of goods and services fell 7 per cent and imports rose 1 per cent.

“Global volatility risks will rise substantially”: Stephen Halmarick, the head of economic and market research at Colonial First State. 10:58am: The Reserve Bank of Australia board holds its monthly policy meeting today, and is universally expected to leave the cash rate where it has been since August last year, at 2. 5 per cent.

The “stable and predictable” LNG income will provide earnings diversity, offsetting the volatile electricity related income and reducing risks for shareholders. “All of Origin’s growth options are in gas, and none in electricity, in our view,” write the analysts. “Following lower 2014 profits, we expect significant recovery in 2015 in parts of the core business, but electricity industry dynamics remain poor and lack of management guidance does not help conviction levels. “Beginning FY2016, APLNG drives a step-wise change. 1:19pm: Australia’s current account deficit widened sharply in the three months to June as export growth stalled and imports rebounded, a swing that was set to be the single biggest drag on economic growth in the quarter.

AUDUSD (white line) following JPYUSD (yellow line) lead. 12:20pm: Most investors are gravitating towards the fat dividend cheques being issued by listed Australian companies, but the chief investment officer at Dalton Nicol Reid, Jamie Nicol, says he is swimming against the tide and going for growth. “We are actively seeking quality companies where boards are prepared to reinvest in the business to generate future returns rather than taking the short term ‘sugar hit’ of returning capital - such as Aurizon and Origin Energy,” the Brisbane-based Nicol said this morning in a statement. “With top line revenue growth remaining scarce, companies with strong business models that demonstrated sustainable growth are being justifiably rewarded - such as Veda Advantage, Iress and Domino’s Pizza”.

Read more here: SMH


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