A tentative start to the week but none the less positive with the S&P/ASX 200 closing positive. This was despite some mid-morning jitters as China opened and officially entered a Bear Market with a loss so far of 10% from its February peak. News of more property curbs were enough to knock confidence in the recovery. We actually saw some recovery across the board, Banks were better with Westpac Banking (A$30.52, +0.9%), Commonwealth Bank of Australia (A$67.02, +0.1%) and Australia and New Zealand Banking Group (A$27.86, +0.4%) all to the good whilst National Australia Bank (A$30.58, +unch) was treading water. Macquarie Group (A$36.00, -1.7%) was a big loser today as the charts turned bearish following a broker downgrade and Suncorp Group (A$11.55, -1.3%) and QBE Insurance Group (A$13.60, -0.9%) eased too. Good to see BHP Billiton (A$32.66, +1.3%) back in the winner’s circle today although the warm and fuzzy feeling did not spill over into RIO Tinto (A$54.84, -1.4%) or Fortescue Metals Group Ltd (A$3.58, +0.3%) really. One of the big winners today was News (A$29.68, +1.9%) as we get closer to the demerger of the business.

Other resource stocks that picked up included the Golds like Silver Lake Resources (A$1.795, +4.4%), Kingsgate Consolidated (A$3.66, +4.6%), Evolution Mining (A$1.285, +0.8%), St Barbara (A$1.09, +3.3%) and of course Newcrest Mining (A$19.18, +2.0%).

Qantas Airways (A$1.735, -1.4%) suffered a little today as did other Asian airlines as the recent outbreak of Bird Flu has taken its 6th victim. And also there appears to be a price war breaking out on flights to London with their competitors chopping their UK price tags as the Emirates/QAN tie up starts to threaten their business models.

Fresh from the Logies fun, the Media sector had a good day today with APN News & Media (A$0.36, unch), Seven West Media (A$2.02, +2.5%) and Ten Network (A$0.295, unch) all finding a gold logie somewhere down the back of the couch!

We also saw some positive moves in the Energy sector led by Woodside Petroleum (A$34.86, +0.2%) and Santos (A$12.18, +1.1%). Big losers today included Harvey Norman (A$2.66, -5.3%) which went XD with Trade Me Group (A$3.78, -2.6%) suffering after Aussie Post stuck up parcel postage prices… try saying that quickly!

Stocks in the News

Karoon Gas Australia (A$4.59, +3.1%) rallied today as the company announced a progress report on Bilby 1.Drilling has started. The last of the three wells they are involved in at the moment.

Silver Lake Resources (A$1.795, +4.4%) rallied again today as news of some breaking of bread with their contractor looks to have soothed things down a little. I expect there was probably some wine involved as well but feel that an amicable outcome for all concerned is the most likely.

Billabong is poised to announce it has struck a deal with Paul Naude, the former head of Billabong’s Americas division, and buyout firm Sycamore Partners at 60 cents a share.A long way from $1.10 but at least SMH has been helping Naude by constantly talking it down with their wipeout puns!

Iron-ore exports from Australia’s Port Hedland rose 25% in March, rebounding from the previous month when cyclones disrupted shipments, according to data from the local port authority. Shipments to China, the world’s biggest importer of iron ore, rose by 22% during the month.

Job advertisements have fallen after rising in the previous two months, a private employment survey says. The total number of ads declined by 1.5 per cent in March, after a 3.0 per cent increase in February and a growth of 0.6 per cent in January, the ANZ job advertisement survey found. Job ads had fallen from March to December 2012.

The Australian Industry Group-Housing Industry Association performance of construction index (PCI) tumbled 6.6 points to 39 points in March.

Not only was it the 34th straight month the index has remained below the key 50 level that indicates slowing construction work, but the March result all but wiped out some encouraging signs seen in February.

BHP Billiton Ltd., the world’s largest mining company, said copper supplies may exceed demand this year and next on growing stockpiles and as the Melbourne- based company ramps up output at its Escondida mine in Chile. It’s “possible” that the market may have a “small surplus” of supply in 2013 and 2014, Peter Beaven, head of the company’s base metals operations, told reporters in Santiago April 4.

For Wesfarmers (A$40.07, +0.5%) Target has announced the shock resignation of its managing director Dene Rogers after only 18 months in the role, citing personal reasons for his departure from the role he was only appointed to in October 2011.

Tomorrows News Today

Japan is the focus at the moment as the implications of its massive stimulus package start to be assessed. The weaker yen is driving the stock market higher as the country declared a trade surplus, the first in four months, was 637.4 billion yen ($6.5 billion), the Ministry of Finance said in Tokyo today.

US Q1 earnings season kicks off with Alcoa tomorrow morning. Like clockwork, analysts have been downgrading forecasts in recent days. Some things never change.

For those of you with long memories, remember Nick Leeson the man who brought Barings to its knees, well after years on the speaking circuit impersonating Ewan McGregor he has got himself a new job with an insolvency company. Should do well! Plenty of experience.

This is a feather in someone’s cap as it looks like Australia is going to be trading directly the Chinese Yuan against the Aussie dollar in the very near future .No US dollar involvement.

Forget the potential Korean war starting up again. It never finished. The biggest war is happening all around in currencies! This is the new global battleground and the casualties are everywhere, especially in Australian manufacturing, tourism and education.

And finally Holden joins the growing number of companies laying people off. More on this in the coming days. Build the cars that people, want not Taxis! Commodore sales have fallen 30% and Cruze, well the less said about that the better.

Clarence