ASX Jumps 0.5 Percent:

Australian shares have rallied quite a bit this year and they are up by 0.5 percent in yesterday’s trade. The main and the major thing that these markets would be watching out for are the fourth quarter earnings of these Australian companies. As of now, most of them have posted good results and analysts say that there is nothing to worry about.

The main macro – economic event which took place in today’s trade was the restructuring by a major blue chip company in Australia, Boral. This took many analysts by surprise and the stock jumped by over 10 percent in today’s trade. Most of the major banks were also in focus today as earnings are nearing.

Richard Morrow, E L & C Baillieu Stockbroking director, said, “Having a big manufacturing business like Boral bite the bullet on the Aussie dollar and start to make structural readjustment, then that can and usually does lead to the same sort of thing happening in other sectors.”

He thinks that this restructuring would be a game changer for this company and the trading sentiment in this sector would change in the coming days. He also added, “It\’s caught a lot of investors by surprise and sparked a lot of short covering in that stock and that\’s gravitated out into other stocks.”

Technical Analysis:

The Australian markets have outperformed most of the world indices in the past one year and that trend is continuing in this index. The index has some strong and important support level at 4600 mark. This mark has been quite difficult for the markets to cross in the past and that is the reason this level would act as a great support going forward.

On the up side, there is some resistance at 4780 and the markets need to take out that level in order to move up. But, as of now, we see that the market is consolidating and will be trading in a range for the next few weeks.

Stocks to watch out for:

Boral limited is in the news today after the company is all set to restructure its operations from the next month. The company says that it will cut 700 staff or employees from its current staff. This made the investors cheer the stock and the stock went up by around 10 percent in today’s trade. The stock was last trading at 4.80 dollars per share.

Fortescue metal group is also in the news today after the company is facing a problem with rising iron ore prices and there may be more problems going ahead for this company on the back of no deals going through. The stock is trading down around 1.5 percent and is trading at 4.57 dollars, last time we checked.

Rio Tinto said that its expansion plans are back on track and the company is all set to go higher from here on. The company said that iron ore prices will fall going forward and that will help the company along with other steel companies to grow higher. The stock has fallen around 0.5 percent and is trading at around 65 dollars per share.

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Category: Finances
Keywords: Dow Jones, Dollar index, Gold, Brent Oil, ASX, Fiscal cliff