Apr 11
8
ECB rate rise: arming for the future
Australian and Asian Report 8th April 2011
Asian markets moved strongly overnight after the Japanese Aftershocks. After yet again more tectonic movement, markets were exceptionally volatile.
TREASURER Wayne Swan has officially rejected Singapore Exchange’s proposed takeover of the ASX, saying it was a “no brainer” that the deal was contrary to the Australian interest.
ASX Ltd and Singapore Exchange Ltd today announced they had agreed to terminate the merger implementation agreement after Mr Swan rejected the proposed takeover by SGX.
Mr Swan said the deal – which the Foreign Investment Review Board unanimously advised against – would have advantaged Singapore more than Australia.
“It’s not the right deal for Australia if we want to ensure the strength and stability of our financial system,” Mr Swan said at a media conference he called in Canberra this morning.
“And it’s not the right deal for Australia if we want to enhance our links into global capital markets.
“It’s not the right deal for Australia if we want to grow our role as a financial services hub in Asia.”
International Report 8th April 2011
US markets advanced on Wednesday, amid speculation of a shake-up at tech giant, Cisco, and following capital-raising plans from several European banks. Cisco Systems jumped 4.9%, leading the technology sector higher, after the CEO’s memo hinted at a likely spin-off of its consumer business, such as Flip digital camera business. Among semiconductor stocks, Broadcom added 3.9%, after a broker upgraded it to “Outperform” from “Perform”, while Advanced Micro Devices was up 4.0%. Financial stocks, Bank of America and J.P. Morgan Chase,, gained values, after Germany’s Commerzbank and Italy’s Intesa Sanpaolo Spa revealed plans to raise as much as €13.25 billion ($19 billion), increasing confidence in the banking system and the ability of lenders to raise cash.
DJIA advanced 0.3% to 12,426.8. NASDAQ ended 0.3% higher, to 2,799.8. S&P 500 Index rose 0.2% to 1,335.5.
Other European markets finished higher yesterday, after Germany’s factory orders rose higher-than-forecasted, and after investors regained some confidence in the banking sector. Banks, Commerzbank and Intesa Sanpaolo led the banking stocks higher, advancing 1.9% and 5.4%, respectively, after the banks announced to raise capital to repay the government. ThyssenKrupp rose 2.6%, after a broker raised its rating from “Neutral” to “Overweight”. Pirelli jumped 4.3%, after a broker upgraded its rating from “Underweight” to “Overweight”. ElringKlinger added 2.0%, amid the company’s plan to buy 66.7% of Elsau, Switzerland-based Hug Group, to expand in the area of emissions reduction technology. Air France KLM increased 1.4%, despite a cut in its price target by a broker. FTSEurofirst 300 index rose 0.3% to 1,147.2. German DAX Xetra 30 added 0.6% to 7,215.1. French CAC-40 edged up 0.2% to close at 4,048.2.
Asian Markets moved massively overnight and we are currently sitting in a tight range on most currency pairs and stock indices.
