What Happened Today?

Max Ludowici of 708 Capital is visiting clients today and as such is unable to produce his regular report.

By Greg Peel

The ASX 200 opened weakly from the bell this morning, falling 20 points before finding buying support. Following a flat session Wall Street on Friday night and a mixed trade balance result from China on Saturday, the Australian market drifted along as traders turned their minds to centuries from both Ed Cowan and Michael Clark, finding positive territory briefly before drifting away again on the close. The XJO finished down 14 points or 0.3% to 4448.

There were nevertheless some sharp moves from individual stocks — to the downside. Having announced a profit warning due to claims from Super Storm Sandy the shares in QBE Insurance ((QBE)) plunged by as much as 15% before recovering to be down around 8% at the closing bell. Insurance industry expectations of a return to "normal" catastrophe patterns following the La Nina floods of 2011-12 are showing that history does not necessarily always repeat (See Herding Cats).

Fertiliser and explosives producer Orica ((ORI)) posted its full-year profit result and missed expectations, and has been punished 4% by the market. Rare earths hopeful Lynas Corp ((LYC)) returned today from a trading halt after first announcing a lifting of the temporary suspension on the temporary operating licence for its plant in Malaysia and then announcing a capital raising, to no one's great surprise, and fell 10% on dilution.

On the good news side of the ledger, today's housing finance data release for September indicate what the Commonwealth Bank economists suggest is upside risk for the Australian housing sector. Home loans to owner-occupiers rose 0.9% in number in the month and 1.5% in value to be up 5.1% and 4.4% over 12 months respectively.  The value of loans to investors rose 8.6% to up 8.8% over 12 months. CBA believes the positive numbers are reflective of the RBA rate cuts in May and June.

The Aussie is 0.3% higher over today at US$1.0423.

Tonight in the US may also offer up a flat session given the Veteran's Day "half" holiday. Banks and bond markets are closed but stock and commodity markets are open, although many traders will likely take the opportunity for a long weekend. We won't count our chickens just yet though. At the close of the Australian session the Dow futures are showing up 24 points.
 

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