European shares tumble ~3% ASX set to open higher

Transcription

1 European shares tumble ~3% ASX set to open higher Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change Volatile Week for U.S. Stocks as Investors Watch Fed, OPEC The most volatile week for U.S. stocks since the summer swoon ended right where it began -- with investors waiting for the Federal Reserve. Equities shattered a month of calm as attention careened from centralbank stimulus to OPEC and jobs data. The steady flow of news that will likely set the tone for markets in 2016 whipsawed the Standard & Poor s 500 Index to four consecutive moves of 1 percent or more. In the end, the gauge ended the week little changed after a catch-up rally on the final day. The future of monetary policy in Europe and the U.S. kept investors guessing two weeks before the Fed s final meeting of the year. Fresh signals that a rate hike is imminent came at the same time the European Central Bank disappointed with the scale of its expanded stimulus. S&P % Dow Jones +2.12% NASDAQ +2.08% STOXX % FTSE % Dax % Crude Oil -2.70% Gold +2.16% The S&P 500 added 0.1 percent in the week to 2,091.69, kicking off what is normally the second-best month of the year with a four-day stretch of swings last seen in August. The index rallied 2.1 percent on Friday, the most in almost three months following a two-day rout of 2.5 percent.

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change ASX Finishes Week Deep in the Red; Set to Open Higher The ASX lost ground on Friday to fall 1.5% with Materials and Banking shares weighing on the market. The S&P/ASX 200 index fell 2 per cent but recovered some ground to close down 76.1 points, or 1.46 per cent, to , in line with the 1.4 per cent fall of the S&P 500. In local news, Australian Bureau of Statistics data show retail spending rose 0.5 per cent in October, and is up almost four per cent in the 12 months to October. According to official data the Australian trade deficit increased to $3.3 billion, significantly higher than the expected $2.4 billion. HIA new home sales declined 3% for the month of October. ASX % ALLORDS -1.43% CBA -1.57% BHP -1.43% WBC -1.85% NAB -1.43% FLN -1.12% IAG -1.74% Chinese services data was slightly below expectation but still above the crucial 50 points mark which indicates expansion. The Service PMI came in at BPF -3.41%

4 DAILY PRICE ACTIVITY AUSTRALIA ASX200 price action last week

5 UPCOMING ANNOUNCEMENTS What s coming up? 2/12/2015 TEF TELFORD HOMES Telford Homes - Interim results 2/12/2015 Cyan Holdings Plc 2/12/2015 RESERVE BANK OF AUSTRALIA Cyan Holdings - Strategic Partnership Agreement with Newcapec in China RBA address to the Australia-Israel Chamber of Commerce (WA) Corporate Breakfast 2/12/2015 MGV MUSGRAVE MINERALS LIMITED Musgrave secures the advanced Cue Project 2/12/2015 finncap finncap - Tailings 2/12/2015 finncap finncap - Support group 2/12/2015 VERTU MOTORS Vertu Motors - Acquisition of Who's Ace Holdings Limited 2/12/2015 CCT CHARACTER GROUP Character Group plc - Results for the year to 31 August /12/2015 IMIMOBILE PLC Leading the Charge - IMImobile 3/12/2015 BENNELONG FUNDS MANAGEMENT Fund aims to provide outperformance with lower fees 14/12/2015 IGO INDEPENDENCE GROUP NL Independence Group NL 2015 Nova Project Update 18/12/2015 GNC GRAINCORP LIMITED GrainCorp 2015 Annual General Meeting 10/02/2016 BLD BORAL LIMITED Boral Half Year Results Courtesy of

6 UPCOMING DIVIDENDS Tasty dividends & distributions ASX CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING % DDR Dicker Data 07 Dec Dec IBC Ironbark Capital 07 Dec Dec AMPHA BND 3M Q RD T 08 Dec Dec CKF Collins Foods 08 Dec Dec GTK Gentrack Group 08 Dec Dec NABHB BND 3M Q RD T 08 Dec Dec SUNPC Dec Dec YTMMG Dec Dec ANZHA BND 3M Q RD T 09 Dec Dec FPH Fisher & Paykel Hlth 09 Dec Dec GSBK35 TB 2.75% M 09 Dec Dec GSBK39 TB 3.25% M 09 Dec Dec Courtesy of

7 WHATS HOT? WHATS NOT? CKF.asx - steaming hot GFY.asx - cooling down Collins Food experienced a strong start to the year and announced profit growth for half year ended October Underlying net profit rose 33.6% to $14.3 million and the company raised its dividend 20% to 6 cents, fully franked. Godfreys is a retailer of domestic and commercial floorcare and associated cleaning products in Australia and New Zealand. Godfrey s warned in October that choppy trading conditions and intense competition will result in flat profits this year.

8 ECONOMIC NEWS What to look out for: No economic news for Australia today

9 NEWSWORTHY This caught our attention.. Crowd DATE Mobile CODE On COMPANY Track' to Accelerate Growth ANNOUNCEMENT Crowd Mobile (ASX:CM8, ETR:CM3) is set to post a record year following the acquisition of Netherlands based payments company Track Holdings. On a pro forma basis combining both Cm8 and track Holdings, both companies would have generated a total of $43.1m in revenue during FY15 and EBITDA of $13.8m. This compares to revenue of $13m and EBITDA of $2.1m for just Crowd Mobile. CM8 expects the synergies of the acquisition to flow through in FY16 as the company achieved revenue of $4m in November which is already 30% of the total revenue achieved in FY15. Read the full story here:

10 LATEST UPDATE FROM WISE-OWL Adidas AG (ETR:ADS) CODE COMPANY Adidas AG (ETR:ADS) - Hold & Upgrade Target ANNOUNCEMENT Update: Wise-owl recommend to buy Adidas AG (ETR:ADS) on 5 August 2015 at Adidas is trading under the ticker code ADS on XETRA (ETR), the electronic trading system for securities based in Frankfurt, Germany This position is part of our International Portfolio and is currently ~25% in profit. ADS surpassed our initial target of last night. On 5 November 2015 Adidas published strong result for Q3 beating analyst consensus forecasts. Group wide revenue rose 13% (currency neutral) with double-digit growth in major markets such as North America or China. ETR:ADS We continue to monitor the stock for a potential 'take profit' level' in the medium-term. The stock is benefiting from further depreciation of the EUR and recognising Adidas' sound financial performance, we maintain our 'hold' advice and upgrade our target to Hold Price: Target: Profit: 25.3% Click here to read the full report

11 OUR VIEWS AT A GLANCE Find below a summary of Wise-owl s current market views CODE COMPANY ANNOUNCEMENT The ASX 200 is stabilising but remains in a medium-term downtrend We continue to focus on small-mid cap stocks We remain cautious on the resource sector We expect international markets to benefit from lower volatility Bullish view for European equities There are individual opportunities on the ASX 200

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