Well, after the party there was always going to be a hangover. Not too bad a headache, more a dull pain than the thumping nausea but we saw some more ‘sell banks buy resources’ trade occurring although the gloss was taken off as Chinese numbers came in somewhat disappointing to say the least. In financials Macquarie Group (A$37.39, +0.8%) reversed early losses but the other big four struggled although did rebound slightly. Australia and New Zealand Banking Group (A$28.25, -0.8%), National Australia Bank (A$31.20, -0.7%), Commonwealth Bank of Australia (A$67.30, -1.0%) and Westpac Banking (A$30.93, -1.2%) all weaker with QBE Insurance Group (A$13.20, -2.3%) the worse of the bunch. Other defensives also suffered as the switch continued with Woolworths (A$33.89, -1.1%), Wesfarmers (A$40.12, -0.9%) and Coca-Cola Amatil (A$14.40, -1.2%) all weaker. News (A$29.51, -1.6%) also came under fire after a great run yesterday.

Resource stocks are showing signs of life as a plethora of brokers trot out oversold recommendation and suggest they are due a bounce. Of course they are, BHP Billiton (A$33.68, +1.7%) and especially RIO Tinto (A$58.28, +2.7%) showing some good gains with Fortescue Metals Group Ltd (A$3.98, +3.6%) and Atlas Iron (A$1.145, +1.8%) joining in with even the big Chihuahua Newcrest Mining (A$19.75, +1.3%) having some tummy rub time! Golds were also good with Evolution Mining (A$1.385, +4.9%), Kingsgate Consolidated (A$3.80, +3.3%), Silver Lake Resources (A$1.92, +2.9%) and Beadell Resources (A$0.845, +3.0%) shining out.

Media stocks suffered some selling today with Ten Network (A$0.305, -3.2%), APN News & Media (A$0.34, -5.6%) weaker whilst Seven West Media (A$2.12, +2.4%) and Fairfax Media (A$0.65, unch) had small rises. Telstra (A$4.57, -0.2%) gave back some of yesterday’s feel good factor after the Coalition announced its slower, sooner, cheaper, NBN plan. But other Telcos found some buyers with M2 Telecommunications Group (A$5.20, +4.0%) and Telecom of New Zealand (A$2.01, +2.0%) ringing up some gains.

Some of the big losers today included discretionary spend stocks like JB Hi-Fi (A$14.79, -2.7%), Super Retail Group (A$11.82, -2.2%) and Harvey Norman (A$2.58, -2.6%) with ARB (A$12.47, -3.7%) amongst the bigger losers.

Volume was still on the anaemic side despite some good volume on the SPI futures market this morning.

Stocks and News Today

Hasn’t Billabong International (A$0.535, -26.7%) done really well as the stock has dissolved before the markets eyes. Once they flew high at $14 now a shadow of their former self at 53c… This will be a great exercise for MBA students in years to come of how to destroy a company. Fantastic effort! Just shame the poor old shareholders have been completely duded by bad management and ineptitude still I am sure they will get a handsome pay out and move on.

Couple of house stocks suffering in the energy sector today included Linc Energy Ltd (A$2.01, -3.4%), Cockatoo Coal (A$0.067, -6.9%) and REY Resources (A$0.065, -3.0%).

Leighton (A$19.98, -0.5%) fears the early loss of a mining contract at BHP Billiton’s Peak Downs coking coal mine will cost it up to $260 million, although they will get compensation for the early termination of the contract.

Another house favourite put on some gains today with Pharmaxis Ltd (A$0.335, +4.7%) slightly better after announcing a distributor for its Bronchitol drug in Brazil.

Let’s face it no one believes most of the numbers that come out of China anyway. But news today that China’s exports rose less than forecast for the first time in four months, fuelling concerns about the outlook for trade and the quality of the data as the government said some companies file false customs declarations. Shipments abroad increased 10 % in March from a year earlier, the customs administration said today in Beijing, while imports rose by an above-forecast 14.1 %, leaving an unexpected trade deficit of $880 million.

Beach Energy (A$1.475, +3.9%) made a very positive announcement today with news of an agreement to supply Origin Energy (A$12.76, +0.6%) with gas for the new Gladstone project.

Iron ore imports by top consumer China rose 14.4 per cent in March from the previous month, customs data showed, but shipment levels were still at their second-lowest in five months amid a sluggish recovery in the country’s appetite for steel.

According to the latest Westpac-Melbourne Institute consumer sentiment survey consumer confidence unexpectedly tumbled 5.1 per cent in April in what Westpac chief economist Bill Evans says was a surprising outcome. Must be Cricket related I suspect but then I am a Pom!

The euro climbed to the highest level versus the yen since 2010 as the Bank of Japan effort to double the nation’s monetary base within two years fuelled demand for higher-yielding assets.

Tomorrows News Today

Possible nuclear tests in the Korean Peninsula. Everyone seen “On the Beach” Ava Gardner and Gregory Peck from memory.

Financial Services Minister Bill Shorten has granted a market licence to Financial and Energy Exchange Global Pty Ltd (FEX), allowing it to set up a market for energy, commodity and environmental derivatives in Australia. He also approved British clearinghouse LCH. Clearnet Ltd, controlled by the London Stock Exchange, to clear and settle contracts on the new FEX market, setting up new clearance competition for the ASX.

One of the things that is puzzling at the moment is the lack of action in the Gold price. With all the unrest on the Korean Peninsula and now Pakistan firing rockets just to add to the issues and let’s not forget the massive bubble blowing that the Bank of Japan is doing, you would think  it would be a great scenario for a higher Gold price. Apparently not although amazingly the price of a digital fantasy currency called BitCoin has gone vertical in the last few weeks rising from $50 to nearly $250.Tulips anyone? Personally I would prefer Gold to a Bitcoin but call me old fashioned!

A handful of firms, including the big four banks, have driven 90 per cent of growth in the Australian share market over the past year. The ASX200 has risen by 14.9 per cent —  or 643.85 points — since April 10, 2012, on the back of a global search for yield which has propelled the big four banks and Telstra. Biggest drag you guessed it BHP and RIO.