(THURSDAY 4TH AUGUST- 08.05 - JAMES GERRISH)..Some rest-bite overnight with the US MKT finishing higher after being down sharply early in the session. The DOW JONES was down -166 before the MKT put on +196 pts to close up +30pts. The S&P 500 was up 0.5% and we've got the SPI FUTURES MKT pricing a rise of +12pts when we open this morning.
There was actually a bit of positive data out with Chinese non-manufacturing PMI up to 59.6 from 57 last month (and not a long way off its peak of 63) and is above the average of 57.5. We also had the ADP private sector jobs data from the US which came in a touch better than expected (+114,000 v +100,000) but we've seen this be a pretty woeful indicator of the more important Non-Farm Payrolls number which is due out on Friday (exp +85,000). Still, these are a small bright spot in what's been a spate of disappointing releases in recent weeks which had certainly increased the risks in the global economy.
Technically, the DOW did hold support last night which is positive.
It was an awful day on our MKT yesterday with the ASX 200 down more than 100pts. We broke through 4450 pretty aggressively and closed near session lows. Most of the damage was done early then we flatlined for the session.
Why we like ANZ v NAB?
It was interesting to look at the results from Standard Chartered earlier in the week given that it has a prominent Asian focus. Its the 2nd largest bank in the UK and said first-half profit rose 19 percent, topping all expectations.
The growth that its getting out of Asia is significant and has underpinned its strong performance.
Here's an outline from Bloomberg however have a think about this as its related to the Australian Banks.
Standard Chartered, which earns most of its profit in Asia, is seeking its eighth successive year of record net income.
Finance Director Richard Meddings in June forecast the bank would hire a net 1,000 people this year, while British rivals including Barclays Plc and HSBC Holdings Plc have announced plans to cut jobs as revenue in Europe and the U.S. slows. Standard Chartered hired about 7,000 people last year and in June said costs would swell in line with revenue as the bank and its rivals face rising wages in their fast-growing Asian markets. HSBC this week said it would cut about 30,000 staff worldwide, or 10 percent of its workforce, by the end of 2013, while Barclays said it would eliminate 3,000 jobs this year. HSBC said it plans to hire 3,000 to 4,000 people a year in emerging markets.
"Given the markets we are in, and the momentum of our businesses, we expect to deliver double-digit income growth in 2011 and beyond," Standard Chartered Chief Executive Officer Peter Sands, 49, said in the statement.
AUSTRALIAN STOCK PRICES OVERNIGHT
In New York, News Corp rose by US$0.26 to US$16.12, equivalent to A$14.97, A$0.40 above its last close on the ASX.
ResMed rose by US$0.06 to US$29.39, equivalent to A$2.73, A$0.03 above its last close on the ASX.
In London, Rio Tinto fell 161.0 pence to £40.15, A$2.46 lower in Australian currency terms.
BHP-Billiton fell 93.5 pence to £21.21, A$1.43 lower in Australian currency terms.
Henderson Group Plc fell 3.5 pence to £1.53, A$0.05 lower in Australian currency terms
