Fletcher Building: ASM - Something for Everyone
FBU's FY16 earnings guidance implies another year of strong growth. The valuation is due a rerating as the strategy delivers results.
Global Stocks Mixed
Global markets were mixed as investors turned their attention from the Middle East to the prospects for further central bank stimulus and the improving US economy.
US stocks flat ahead of Thanksgiving holiday weekend
US stocks were flat in pre-holiday trading, with equities hovering near three-week highs as investors weighed mixed economic data and weakness in commodities. At the time of writing the S&P 500 was unchanged, while the Dow Jones Industrial Average moved +0.1%.
Energy shares trimmed earlier declines after data showed crude-oil stockpiles rose less than forecast. Pfizer climbed +3.3% to lead health-care stocks higher. Macy’s gained +2.1% and travel-related companies rebounded to pace an increase among consumer discretionary companies.
European, UK stocks rebound
European shares rebounded from their biggest drop in almost two weeks as investors turned their attention from the Middle East to the prospects for further central bank stimulus and the improving US economy. The Stoxx Europe 600 rallied +1.4%. Deutsche Lufthansa rose +2.7% after cabin crew called off strikes for this week.
The UK’s FTSE 100 rose +1.0% with homebuilders leading gains as Chancellor of the Exchequer George Osborne announced increased spending on housing and an improved economic outlook. Taylor Wimpey climbed +3.8%, leading gains in the benchmark index. Persimmon and Barratt Developments rose +3.0% and 3.6% respectively. Capita, a service provider to the public and private sectors, added +3.3%.
Asian, Japanese indices fall
Asian stocks fell, dragged lower by Japanese shares as growing military tension between Turkey and Russia drove the yen higher, fuelling demand for haven assets and curbing the profit outlook for exporters trading in Tokyo. The MSCI Asia Pacific Index slid -0.2%.
Japan’s Topix dropped -0.7%. Brokers and banks fell on media reports that Japanese regulators will require higher capital ratios at financial companies. Broker Nomura Holdings dropped -2.3%, while lenders Mizuho Financial retreated -2.0%, Mitsubishi UFJ lost -2.1% and Sumitomo Mitsui fell -2.1%.
ASX 200 drops
The ASX 200 slides -0.6%. Rising oil prices fed into the energy stocks, with Santos leading the sector, up +3.5%.
Crude and gold down
WTI crude fell -1.4% to US$40.68 while gold lost -0.3% to US$1,072.10
ARV 1H16 result
PEB 1H16 result