"Whatever it takes" helps shares jump

More words from eurozone and the ASX jumps 1.5%

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published July 27, 2012 5:29 pm AEST

Those were the words of European Central bank chief Mario Draghi as he pledged to do "whatever it takes" to preserve the Eurozone, and investors were well pleased. Risk is apparently back on.

Overnight, the Dow Jones Industrial Average was up 1.7%, while the UK's FTSE 100 put on 1.4%, following the ECB chief's comments.

In response, the S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) has jumped 1.5% to close at 4,209.8, following the offshore leads. Gold and metals & mining sectors led the market, putting on 2.8% and 2% respectively.

The Aussie dollar is up against the US dollar, currently buying 103.8 US cents.

Company News

Takeover target, Billabong International Limited (ASX: BBG) has opened its books for private equity suitor TPG to conduct due diligence, and likely, hopes of an improved offer.

The Australian Consumer and Competition Commission has initiated an enquiry into Ten Network Holdings Limited's (ASX: TEN) sale of its outdoor advertising business, Eye Corp to CHAMP Private Equity owned oOh!media. It seems the combined group would have a significant share of the outdoor advertising market.

Meanwhile, Qantas Airways Limited (ASX: QAN) appears to have turned its eye to its 29% holding in underperforming Jetset Travelworld Limited (ASX: JET), with the announcement that former Qantas executive Rob Gurney has been appointed as chief executive.

Winners and Losers

Losers from the last couple of days have staged a semi-recovery, with BlueScope Steel Limited (ASX: BSL), Fortescue Metals Group Limited (ASX: FMG) and Newcrest Mining Limited (ASX: NCM) posting the best gains from the majors today. BlueScope was up over 4%, Fortescue and Newcrest rose more than 3.4% while Rio posted a 3% gain.

Just one company from the ASX Top 50 saw their share price end in the red, with AGL Energy Limited (ASX: AGK) falling 0.2%.

Foolish takeaway

Yet more words from the euro zone, which we have yet to see put into action. Policy makers could do worse than watch the Olympic Games, which contains more action and less talk.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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