Good morning,

World markets bounced slightly last night as corporate results from Alcoa combined with an easing of Spanish and Italian bond yields helped the sentiment, more based on lack of interest for German bond sale. Nothing though to get too carried away with yet though as the rumblings from ‘Zombieland’ grow..The problem they have is austerity measures don’t promote growth and they get themselves locked into a death spiral which ends in serious pain..

The big winner out of this is Germany who is making like a bandit with its exports as the low Euro makes them super competitive..I have also seen some forecasts on more Spanish property problems with prices predicted to fall 30% again!!That would hurt…

Yesterday our market held up better than most so today will be more muted on the recovery but I strongly suspect that we have seen the high for a while at 4370 on the SPI..it’s now down to stock selection to make some money as it always should be…

One that has fallen back but will not last is MAD..just announced good results so would expect the stock to head back up today..their latest well in the US has encountered significant oil and gas..always a good thing..the other oil stocks like BRU,NSE etc have all come crashing back to earth but support should start to appear soon and accumulation is recommended.

Things of note today.

1.Man United lost and City won..not over yet!

2.BHP moves to close Norwich Park coal mine in Queensland after the union troubles there..That’s taught them!

3.Unemployment figures released today..expecting a rise to 5.3%…expect 6500 jobs to have been created in March..not sure where!

4.Base metals and Oil higher as Gold eases..

5.Clive Palmers company paid no tax…who would have guessed eh!

6.Soc Gen analyst in Tokyo warns that the Country could lose its AAA rating if Julia embarks on austerity at all costs…RBA come on it’s your turn to help this economy!Gloom is descending on consumers as winter approaches..Carbon Tax will loom large in people’s minds..stoked of course by Tony and friends.

7.North Korea will launch today..Japan on Full alert..earthquakes in Sumatra and Mexico!

8.US initial jobless claims tonight!

9. The next major test for the market comes very shortly in London, as Fed dove Yellen speaks in New York on economic outlook and monetary policy. Any hints of hawkishness from Yellen could have a profound impact on the market. Coming in now….. says “further monetary easing could be warranted if US recovery proceeds at slower than expected rate”

10.Ten profit sinks 70% on weak advertising market..could have guessed that as they are still running Energy watch ads with disgraced Ben Polis on it! Didn’t anyone spot this…

 

Expect another lacklustre day in the land of OZ…volumes are pathetic and enthusiasm for equities is not huge..any bounce will be tepid whilst kids are on holiday..traffic very light ..

 

Thought for the day from BBC Series QI

[On the inventor of the Hokey Pokey]

Stephen Fry: He died in 1996; what happened at his funeral?

Alan Davies: Oh, it was terrible, they couldn’t get him into his coffin.

Stephen Fry: Why was that?

Alan Davies: Well, they put the left leg in … Then the trouble started.

Clarence

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