The market is down 14. SFE Futures were down 4 this morning.

Dow Jones up 10. The Dow was up 50 at best and down 6 at worst.  Markets were up marginally as they awaited any policy outcomes from the FOMC meeting that commenced last night and will conclude tonight our time. The news that the German Constitutional Court had not blocked the ratification of the European Stability Mechanism (ESM) helped sentiment but did not provoke much buying on global markets — it was more “disaster averted”. In another piece of news that wasn’t as bad as it could be the incumbent Dutch government got re-elected which removed the risk of anti-austerity parties rejecting the ESM.

The German Constitutional Court will allow German participation in the ESM with conditions stipulating that a cap of approximately €190bn be set on total German liabilities (equal to approximately 27.14% of ESM liabilities) unless the German parliament decides otherwise. The Court decided that the ratification of the ESM does not, with a high probability, violate the German constitution. The market was said to be pricing in an 80% chance of the German Court decision we got.

European markets mixed — UK FTSE down 0.17%, German DAX up 0.46%, France up 0.18%, Spain up 0.78%, Italy up 1.19% and Greece up 5.33%. The German courts decision was a clear positive to Financials sector Goldman Sachs, JP Morgan and Citigroup all up around 1.0%. Bank of America down 0.7% in the US. Credit Suisse and UBS were up 4.9% and 2.1% in Europe.

Metals mixed — Copper up 0.64%, Nickel down 0.28%, Aluminium down 0.07% and Zinc down 1.29%. Platinum prices were at around five month highs as fears grew that supplies of this precious metal would be disrupted by ongoing industrial disputation in South Africa. Iron ore price down $2.10 to $98.10.

  • Myer Holdings — FY12 result in line with consensus — NPAT of $139m down 14.3% but slightly above a market consensus of $138m. No specific guidance given. Fully franked final dividend was cut to 9c from 11.5c. MYR is down 0.54% to 183c.
  • Sigma Pharmaceutical (SIP) — Interim profit falls — Net profit was down 2.1% to $26.1m. The fall in profit was due to reforms in the pharmaceutical benefits scheme and investments in the growth of Sigma’s business. Fully franked dividend of 2c up from 1.5c. SIP is down 1.46% to 68c.
  • QR National (QRN) — The QLD government has confirmed they will sell their 34% stake in the company. QRN is down 1.16% to 340c.
  • Lynas (LYC) — The saga continues. Activists in Malaysia are planning an attack to stop Lynas from opening their LAMP facility in Malaysia and the opposition vows to stop the plant if they gain power in April elections next year. LYC is up 3.95% to 87c.
  • Seven Group Holdings (SVW) — The ACCC has voiced their concerns over SVW’s proposal to take over Consolidated Media Holdings (CMJ). The concerns relate to the influence Seven may be able to exert over Fox Sports Australia. ACCC announces their decision October 11th.
  • Ardent Leisure (AAD) — Has bought Fenix Fitness Clubs for $61m. The purchase includes 8 clubs in Melbourne and 2 in QLD.

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