##{"id":60912,"date":"2012-11-16T16:27:57","date_gmt":"2012-11-16T05:27:57","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/11\/16\/what-happened-today-15\/"},"modified":"2012-11-16T16:27:57","modified_gmt":"2012-11-16T05:27:57","slug":"what-happened-today-15","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/11\/16\/what-happened-today-15\/","title":{"rendered":"What Happened Today?"},"content":{"rendered":"

\n\tBy Max Ludowici<\/span>, Equities & Derivatives Advisor, 708 Capital <\/p>\n

\n\tTrade was sluggish on the ASX200<\/span> as investors digested another night of weak news and leadless price action and continued concern over the fiscal cliff weighed on sentiment. Quiet trading saw the market briefly in the green early on before trading sideways down fractionally for the majority of the day as we had little data to take lead from. We closed the day near the lows, down 12 points or 0.3% to 4337 on tiny turnover of $3.8B. There was little real reaction to the weaker jobless claims and industrial data in the US overnight as this was largely a result of the disruption Hurricane Sandy caused late in.<\/p>\n

\n\tMarket action has been sour since Obama reclaimed office with the S&P500<\/span> now down 5% as investors mull over the potential ramifications of the January 1 budgetary reset. The market needs a clear signal that solid attempts are being made to tackle the fiscal cliff issue before it’s going to trade higher. It would be too politically unpopular (like most tough economics decisions) to let the bus crash off the cliff and actually try to tighten up the US$1.2 Trillion (not a typo) budget deficit. Politicians can generally be counted on acting like politicians so it’s quite a safe bet that Obama and the congressional leaders will make friends and take action. Warren Buffet came out last night, teeth chattering, to comment on the disastrous consequences for the US economy if the fiscal cliff tax hikes and spending cuts were allowed to take place. You know when Warren is wheeled out that a resolution isn’t far away. We had begun to get a glimmer of hope that things in the US were on the up given the positive housing data in August, September and October and the support Bernanke has shown for the sector with the $40B<\/span> Mortgage Backed Securities buyback program also announced in September. Remember, it all starts with housing.<\/p>\n

\n\tQantas’ ((QAN<\/span>)) double whammy of good news yesterday, didn’t actually appear to be viewed very favourably<\/span> by analysts. UBS, Goldman Sachs and Credit Suisse all lowered their price targets. UBS from $1.67 to $1.60, GS<\/span> from $1.44 to $1.41 and Credit Suisse from $1.95 to $1.76.<\/p>\n

\n\tDOW futures point to a slightly weaker open down 14 points.
\n\t <\/p>\n

\n\tThis article produced at the request of and is published by FNArena<\/span> with the expressed permission of 708 Capital.<\/em><\/em><\/p>\n

\n\t708 Capital is a full service stockbroking<\/span> and investment advisory firm. 708 offers investment and market advice to high-net-worth Private and Institutional clients in Australia and across the globe. 708's extensive network of contacts gives its clients exclusive access to ground-level fundraising opportunities and new company listings in a variety of small and large cap ASX<\/span> listed companies. 708 has a longstanding track record of generating exceptional returns for its clients. Click here 708capital.com.au\/contact-us\/<\/a> <\/a>for a no cost consultation and portfolio review or to learn more visit www.708capital.com.au<\/a>. Note: 708 Capital offers wealth management services for Sophisticated and Wholesale Investors only. We cannot assist investors who aren’t classified as Sophisticated Investors<\/em> or have verified assets over AUD$2.5m.<\/em><\/em><\/p>\n

\n\t $\"\"$ <\/p>\n

\n\t708capital<\/span> is a holder of AFSL<\/span>. No. 386279<\/em><\/p>\n

\n\tIMPORTANT DISCLAIMER – THIS MAY AFFECT YOUR LEGAL RIGHTS:<\/em><\/p>\n

\n\tThis document is intended to provide general securities advice only, and has been prepared without taking account of your objectives, financial situation or needs and therefore before acting on advice contained in this document you should consider its appropriateness having regard to your objectives, financial situation and needs. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.<\/em><\/p>\n

\n\tDisclosure of Interests: 708capital<\/span> receives commission from dealing in securities and its authorised<\/span> representatives, or introducers of business, may directly share in this commission. 708capital<\/span> and its associates may hold shares in the companies recommended.<\/em><\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"