insto - Australian financial markets

The Australian-based Investec Global Aircraft Fund, managed by Investec Capital Markets, has appointed ex-Qantas senior executive John Borghetti to join its investment committee, which now has six members. Borghetti had 36 years experience with Qantas where he held the position of executive general manager before leaving in mid-2009. IGAF currently has seven aircraft with a total value in excess of US$500 million and is currently undergoing a second capital raising.

US stocks were weaker on Friday after Q3 earnings from Bank of America and General Electric fell short of expectations.

The S&P500 shed 0.81 per cent during Friday’s session but still ended the week up 1.5 per cent as the market was encouraged by a positive start earlier in the week. Friday’s softness however forced the Dow lower, to close below the 10,000 mark having broken through the milestone earlier in the week.

US stocks ended a strong quarter on a low after manufacturing data disappointed investors.

The S&P500 fell 0.4 per cent after a Chicago ISM report showed a surprising decline in factory orders. US GDP numbers however were positive, as the US economy was shown to have declined by 0.7 per cent, less than the forecast 1.2 per cent.

The S&P500 index has now gained for the seventh straight month and its 15 per cent quarterly gain is the highest in almost a decade.

A three day winning streak for US stocks was broken as investors paused for breath.

The S&P500 index fell 0.3 per cent on Thursday following strong gains earlier in the week. The decline was amidst mixed economic data as housing starts rose a less than forecast 1.5 per cent while jobless claims unexpectedly declined. Financial stocks bucked the trend, trading higher during the session.

US Credit indices also paused for breath. The Markit CDX closed above the 100 mark, 4bps higher at 102.

Paul Masi, the new country head for Bank of America in Australia has been marshalling the troops from two very different businesses.

A more traditional commercial bank has now merged with as investment bank. How is that playing out, in your area of operations?

US stock markets strengthened at the close despite poor retail and jobs data dampening strong numbers from Walmart.

Market optimism fueled by positive US corporate earnings continued on Thursday as stock index hit year-highs.

The S&P500 index closed up 2.3 per cent at 976, its highest level since November 2008 while the Dow Industrial index closed above the 9000 mark for the first time since January after more US companies including McDonalds and AT&T beat analysts’ forecasts.

Bonds declined on Friday after housing starts data was better than expected. US 10yr yields rose 7bps to 3.64 per cent. Credit indices were firm; The Markit CDX index moved 1bp tighter to end the week at 131.

Citigroup and Bank of America both beat analyst forecasts when they reported Q2 earnings, but the banks warned of rising losses in consumer loans.

The co-ordinated response to the banking crisis appears to have benefitted the owners of the world’s largest banks in no uncertain terms. The results from the US banks in the last few days have emphatically confirmed that, with first Goldman Sachs and then JP Morgan delivering their best results ever, backed by a better than expected efforts from Bank of America (with Merrill Lynch yet to be fully digested) and Citigroup.

US Stocks had another positive session on Thursday as JPMorgan posted solid earnings and Dr Doom changed his tune.

The US S&P500 index closed up 0.86 per cent. Bonds also gained as foreclosures data and concerns surrounding CIT led to some ‘safe haven’ buying. The UST 10yr yields fell 6bps to 3.56 per cent.