Daily FNArena News - Australia

Rio Tinto’s June quarter production report largely matched market expectations so brokers continue to see value in the stock.

Yesterday’s move by Bank of America Merrill Lynch to upgrade Foster’s to a Buy has been met by a downgrade from Citi.

As is always the case, a strong production result from the uranium miner threw up just as many questions as answers.

While still negative the Westpac-Melbourne Institute Leading Index continues to improve modestly.

National Australia Bank’s monthly survey of business conditions and confidence levels showed gains over the May results, but not enough for the bank to lift its economic growth forecasts.

Bank of America Merrill Lynch sees scope for earnings improvement in Foster’s and so upgrades to a Buy rating.

Stockbrokers remain cautious on Minara given the company’s high cost of production and the subdued outlook for nickel prices.

Macquarie has upgraded Qantas to a Neutral rating as the broker sees some early signs of reasons to be more optimistic.

As the group’s traffic ramp up continues to fall short of expectations speculation is mounting Transurban could bid for ConnectEast but brokers don’t see any such move as imminent.

Westpac Melbourne Institute Consumer Sentiment Index has delivered a “stunning” result for July.