The market pushed higher today on post Easter fumes with a leap of over 25 points before wilting to be square pre the RBA announcement, then it was back up again to close at 4985.

Volume was very light and the banks and defensives took centre stage with resources as usual down. Consumer stocks Woolworths (A$34.36, +1.7%) and Wesfarmers (A$40.72, +1.3%) were standouts with Australia and New Zealand Banking Group (A$28.82, +1.0%) and Commonwealth Bank of Australia (A$68.95, +1.4%) the stars of the banking sector. Energy shares were also better with Origin Energy (A$13.45, +1.3%), Woodside Petroleum (A$36.00, +0.5%) and Washington H Soul Pattinson & Company (A$14.42, +3.7%) all in the green. However the feel good factor failed to inspire AWE (A$1.23, -5.0%), Buru Energy (A$2.37, -4.0%), Linc Energy Ltd (A$2.12, -5.4%) and AP Eagers (A$4.44, -5.9%).

Qantas Airways (A$1.83, +2.5%) had a good day after the Easter fly by with them picking up a six-fold increase in bookings for the European experience via Dubai.

Property trusts also had a positive day with Stockland (A$3.77, +3.3%),GPT Group (A$3.82, +3.0%),CFS Retail Property Trust Group (A$2.06, +2.5%), Goodman Group (A$4.92, +2.9%) and Commonwealth Property Office Fund (A$1.135, +2.3%). In other financials it appears that Macquarie Group (A$37.41, +0.7%) is making some serious progress in turning itself into a retail bank with a big push into high margin mortgages courtesy of its deal with Yellow Brick Road (A$0.595, +6.25%).

Stocks in the News Today

Lynas (A$0.505, -9.8%) got whacked today on problems for their Chinese competitors with Rare Earth prices and outlook under pressure. There is also the added complication of a Malaysian election for LYC. So investors avoiding this one like the plague at the moment.

Other house stocks in the energy sector got hit today with AWE (A$1.23, -5.0%),Buru Energy (A$2.37, -4.0%),Karoon Gas Australia (A$4.95, -3.3%) and REY Resources (A$0.063, -7.4%) all suffering from a chocolate hangover. We also saw some nausea from the Easter Bunnies gifts in ASG Group (A$0.39, -7.1%), Acrux (A$3.75, -3.4%) and Phosphagenics (A$0.125, -3.8%). And after warning in February that things were soft Resource Equipment Ltd (A$0.16, -17.9%) issued another update and it was pretty nasty reading as the softness in their key markets came home to roost.

Billabong International (A$0.73, unch) had a busy Easter evaluating the two bids that are on the table. Hopefully they will still be on the table but looks like the price is going to be somewhat adjusted. If they walk away this time it’s not going to be pleasant.

‘Big Nath’ has put all his racing interests up for grabs. As the price of Whitehaven Coal (A$2.03, -4.2%) hoovers around $2.00 it’s hardly surprising. Rumours last week of marital issues were also rife which would prove problematic as it’s his wife that gives him the money!

In economic matters the biggest surprise was that the RBA left rates unchanged. They mumbled something about inflation being so low they could cut if they needed.. ‘‘The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand.’’..Blah! Blah! Blah!..we know all that, so if you could cut why didn’t you? The manufacturers would like it.. they are suffering big time! Seems they are going to wait.. now I predict that we have seen the bottom of the cycle in rate cuts.

The decline in Australia’s manufacturing sector has extended into a 14th month as falling selling prices and a strong currency hit hard. The Australian Industry Group performance of manufacturing index fell 1.2 index points in March to 44.4 points. The index has been below the key 50 level, which separates expansion from contraction, since February 2012.

And in good news for the old school retailers, online sales have stumbled at the beginning of 2013 with Australia’s online retail spending growing at its weakest rate since May 2012.

Figures just released by National Australia Bank show its online retail sales index was weaker in February.

Tomorrows News Today

As Cyprus recedes in the rear view mirror.. “nothing to see here”..the market has moved on, expect the ASX 200 to start to focus on Wayne’s Swansong. Let’s face it, it’s going to be his last budget and most of it will never get past Parliament so it’s more of an election manifesto than anything else and the chances of that being successful are miniscule. So while everybody uses this as an excuse, the sad fact is the market will start to look tired for a few months I suspect.

I read a great list of 132 companies and individuals who managed to pull vast sums of money out of Cyprus before the confiscation of deposits. Seems even the President himself managed to extricate 21 mln Euros out to London! Seems that everyone had an inkling it was going to happen.

House prices both here and in China are going well at the moment, property curbs there have seen a massive rush into new homes, 10th straight month and here we have seen analysts RP Data-Rismark, report that Sydney dwelling values grew 1.5 per cent last month, capping a growth trend that began nearly a year ago and has made it the only city to fully recover the losses of the last three years, with the dwelling value reaching a new peak in March. So we all feel better now. Money is cheap and seems to be relatively plentiful for home buyers so the asset bubble grows!

And if the World didn’t have enough issues we now have Korea! Not sure the US can afford another war, the US has spent around $1.4trillion on them since 2001.Been a big success all round!