The SPI Futures is trading above the key pivot level of 4230, ending up 0.1% (or 2 points) at 4,259. The key levels for our index today are 4220 to 4280.

Aussie shares are expected to open flat today.  Traders should be looking to protect recent profits, as investors wait for some conclusive news on the Greek debt talks and for the Chinese CPI figures out today.  The Aussie reporting season heats up.   Markets held on to recent gains in the US and European markets overnight.

See below for ASX listed companies in the news today.

US Markets

US stock markets continued to melt-up overnight, as traders waited for the finialisation of an agreement among Greek politicians on austerity reforms ahead of the country’s second international bailout. 

The Dow Jones Industrial Average edged upwards to its highest high since May 2008.  In the broader markets the S&P500 and Nasdaq closed higher again. Energy stocks weighed, as crude-oil prices pulled back from their early gains. 

The Greek debate continued as international lenders have asked Greece to come up with EUR3.2 billion in spending cuts for 2012 alone, demanding a reduction in private-sector minimum wages, additional cutbacks in government spending, the layoffs for some 15,000 civil servants in the Greek public sector in 2012, plus steep cuts in supplemental pensions. Understandably this is proving a hard sell to the Greek population. 

Cisco, the IT bell-weather, reported after market beating forecasts on the back of stronger corporate revenues.  

Commodities remained well supported with copper rising 0.9% around a 5-month high, crude-oil finished higher, but gold prices gave back some of their recent gains, while the US dollar eased against the euro and gained on the yen.  

Most of the company groups that make up the S&P index traded higher, with Materials up 0.1%, Energy down -0.3%, Financials up 0.8%, Industrials up 0.2%, Technology up 0.6%, while Consumer Staples were up 0.2%.

The Dow Jones closed up 0.1% (or 6 points) at 12,883, the S&P 500 index was up 0.2% (or 3 points) at 1,349, the Nasdaq ended up 0.4% (or 12 points) at 2,916 and the smaller cap Russell 2000 was up 0.1%.

European Markets

European stock markets eased overnight after opening higher, as the Greek debt bailout negotiations linger longer. The Stoxx Europe 600 index fell 0.2%.

Investor focus continued to be on the Greek debt negotiations, as traders watch for the Greek government’s commitment to the necessary austerity measures, which are a prerequisite for finalising the bailout deal.  

News that the European Central Bank (ECB) is willing to exchange its holdings in Greek government bonds with the European Financial Stability Facility (EFSF) at a discounted price, was well received.  This news boosted banking shares across the region, while mining stocks sold down as BHP Billiton fell 2.3% after reporting a 5.5% decrease in first-half profit due to rising costs, falling commodity prices and production disruptions, and Glencore International and Xstrata edged lower.

In London the FTSE 100 index closed down -0.2% (or -14 points) at 5,876, the German DAX was down -0.1% (or -5 points) at 6,749 while in France the CAC was down -0.1% (or -2 points) at 3,410. Spain was up 0.1% and Italy ended up 1.1%.

Asian Markets

Asian stock markets rose yesterday, as traders followed positive leads from their overseas counterparts.  

Across the region growth sensitive stocks provided suport as the growing optimism for risk appetite pushed a number of key markets to multi-month highs.

The negotiations over the Greek debt restructuring deal continued. In Japan the Nikkei Stock Index rose to its 3-month high, while in Hong Kong the market rose to 6-month highs.  In China the Shanghai Composite bounced to 2-month highs, ahead of Chinese CPI figures out today (12:30pm).  Traders went bargain hunting ahead of the CPI news.  Property and energy stocks also gained for the session.

In China the SSE Composite closed up 2.4% at 2,347, while in Hong Kong the Hang Seng Index was up 1.5% (or 319 points) at 21,018 and in Japan the Nikkei 225 Index closed up 1.1% (or -98 points) at 9,015. The South Korean KOSPI was up 1.1% for the session, while the Indian market up 0.5%.

Commodities

The Dollar Index was higher at 78.60 on a higher Euro, while the Australian Dollar last traded higher at 1.0802. Commodities prices traded higher.

For the session the benchmark crude NYMEX for March delivery was up 0.8% (or -$US0.74) to settle at $US99.15.  Copper prices are seeking a support level as Copper for February delivery was up 0.9% (or 3.4 cents) at $US3.89020.  February gold was down -0.7% (or -$US12.60) at $US1,734.

ASX News Today

ALZ – Australand the property developer has suffered a 15 percent slump in full-year net profit but believes it can improve earnings in 2012 despite difficult market conditions.

ANN – Ansell Ltd says it is rectifying problems with its new business processing system which have resulted in the gloves and condoms supplier losing sales and customers in the key North American market.

BHP – BHP Billiton has reported a slight fall in earnings, but is still a world leader.  Despite the 6 percent drop in half-year profit to $US9.94 billion (its first in over 2 years), BHP made more cash profits in six months than the $US90 billion proposed merger entity of commodities trader Glencore and miner Xstrata would have made in all of 2011.

CBA – CommBank is facing questions by the Queensland government after another glitch left thousands of police and civilian staff unpaid.

EMU – Emu Nickel says it needs to raise $60 million to buy the asset and re-start production in Australia’s sole antimony mine.

GNS – Gunns shares have shot up by more than 50 per cent after the woodchipper said it would make up to $280 million with the issue of new shares to New Zealand billionaire Richard Chandler.

SGT – Singtel says the federal government will consider whether there needs to be changes to copyright laws after being lobbied by Australia’s sporting codes over broadcasting rights.

SUN – Suncorp Group is the latest financial services company to announce redundancies, by sending 65 accounting positions to India.

RIO – Rio Tinto will spend $US3.4 billion expanding its iron ore operations in WA’s Pilbara region.

WEB – Webjet has posted a 17 percent jump in half-year profit as it continues to benefit from Australians travelling overseas in record numbers.

Corporate News

Reporting today: Aquarius (AQP), Bunnings (BWP), Flexigroup (FLX), Rio Tinto (RIO), Tabcorp (TAH), Telstra (TLS) and Stockland (SGP)

Market Summary 

ASX – to open flat
US & UK/Europe – held

Commodities Stock Index  down -0.3%
Gold Stocks Index down -0.3%
Oil Stocks Index down -0.3% 

US ADRs – Broadly Mixed

BHP down -1.3%,  RIO down – 0.5%; AWC down 2.5%
ANZ  up 0.6% & NAB down -0.3%
NEM   down -0.3%, JHX down -1.4%, NWS  up 0.1%

By Michael Hevern
Head of Research

For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research.

Thiess Managing Director Bruce Munro said the contract was testimony to the multi-disciplinary expertise and experience Thiess brings to such a large geographically-dispersed project. “Thiess has a culture of valuing and building long-term partnerships and we are proud to work with QGC on this project of state significance,” Mr Munro said. Work will begin in February 2012 and is expected to be completed in April next year. The project will extend Thiess’ presence in the upstream coal seam gas sector in the region where its founding fathers started the business more than 77 years ago.

Thiess has an annual turnover of $7 billion and nearly $22 billion work in hand. With over 19,000 employees, it has become Australia’s leading and most trusted construction, mining and services contractor. Thiess is a wholly-owned subsidiary of Leighton

www.leighton.com

http://www.traderdealer.com.au/fundamentals/lei

“We are very excited about winning these two new projects as they improve our revenue and further enhance our reputation in this market. We have long known that our OdorTeQ® biological treatment technology is world class, so it’s no surprise that we are winning more and more projects based on this platform. Our highly skilled sales and engineering teams are focused on providing our customers with value for money, quality products that are delivered safely and within our customer’s time expectations. Our current market success is a direct result of this offering. We are looking to expand our market geography and become a supplier to the greater Asian marketplace.” said Peter Voigt, Chief Executive Officer of Clean TeQ.

Clean TeQ (CLQ) is a leading Australian clean technology business that focuses on providing solutions for the purification of air, water and mineral resources. The Company’s technologies provide our customers with focused, fit-for-purpose solutions that are specifically targeted; minimize energy input and waste byproducts. Clean TeQ develops technologies in- house and partners with leading technology suppliers worldwide.

www.cleanteq.com

http://www.traderdealer.com.au/fundamentals/clq

DGL Chief Executive Officer Scott Criddle said, “the preferred contractor agreement that Rio Tinto has entered into with Decmil Australia reflects the strength of the relationship between the two companies. The long term nature of this agreement provides both organisations with greater certainty in long-term planning. “This agreement also represents a continuation of our strategy of securing recurring revenue streams with key clients in key sectors.”

www.decmil.com.au

http://www.traderdealer.com.au/fundamentals/dcg

*Current Yield: 2.1% Franking: 100% DRP Discount: Not Available

Colorpak Limited

*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.

*Current Yield: 2.6% Franking: 100% DRP Discount: Not Available

BKI Investment Ltd

*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.

*Current Yield: 1.5% Franking: 100% DRP Discount: Not Available

Swick Mining

*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.

*Current Yield: 5.1% Franking: 100% DRP Discount: Not Available

Korvest Ltd

*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.

*Current Yield: 3.8% Franking: 100% DRP Discount: Not Available

G.U.D. Holdings

*Yield has been calculated on the closing price on the 3/2/2011. Current yield is based on the current dividend payment only.