We have had “Stronger for longer”, “Whatever it takes” and now “Lower forever!” ‘King’ Carney and ‘Super’ Mario last night ignited the blue touch paper in Europe with news that they will keep rates down low until everything is sorted. Forever really. It was enough to kick us higher at the open and there we stayed. No volume and no volatility. Once again the big green financial blob led the way with BHP Billiton (A$31.60, +1.2%) and Telstra (A$4.76, +1.5%) also adding to the gains. With the US on holiday it was concerning how little real business there was out there. Seems this week’s wild gyrations have taken a toll on investor interest. Although we are now up 40 points for the week.

Financials were good, all the banks led with QBE Insurance Group (A$16.57, +2.4%) and Macquarie Group (A$41.96, +2.2%) coming up the rear. Property trusts were also in favour again with Mirvac Group (A$1.68, +3.1%), GPT Group (A$3.86, +1.6%), Dexus Property Group (A$1.08, +3.3%), Stockland (A$3.53, +2.3%) all better.

Resource stocks were led by Fortescue Metals Group Ltd (A$3.36, +1.8%) which had a stunning return to favour as did RIO Tinto (A$52.70, +1.0%). But Newcrest Mining (A$10.73, -2.3%) came in for some profit taking following a small fall in the Gold price. Staples like Wesfarmers (A$39.22, +0.9%) and Woolworths (A$32.69, +0.7%) also fared ok as did CSL (A$63.28, -0.2%) consolidating its recent rises. Energy stocks rose as Woodside Petroleum (A$35.89, +0.7%) recovered and Santos (A$13.22, +1.9%), Oil Search (A$7.97, +1.1%) and Origin Energy (A$12.65, +0.2%) did well too. Drillsearch Energy (A$1.24, +6.0%) continued up following yesterday’s deal with STO. We even had some positive moves from retailers, Harvey Norman (A$2.44, +1.2%),JB Hi-Fi (A$16.56, -0.6%), David Jones (A$2.58, +2.8%) and Myer (A$2.47, +2.1%), who are now suffering from a low Aussie Dollar as their products they import get more expensive! These guys can’t win really!

Media stocks were better today with APN News & Media (A$0.275, +3.8%), Fairfax Media (A$0.52, +2.0%), Seven West Media (A$2.01, +3.3%) and Ten Network (A$0.28, +1.8%) on the up. Suspect it may have something to do with Melissa Doyle but not 100%.Mining services also found some friends today with Monadelphous Group (A$15.40, +3.4%), WorleyParsons (A$20.15, +1.0%), Cardno (A$5.26, +3.1%), Macmahon (A$0.14, +7.7%), NRW (A$0.945, +3.8%), Austin Engineering (A$3.08, +3.7%) and Bradken (A$4.39, +2.1%). But then they are all coming off some pretty low bases.

Smiling like Cheshire cats today were Western Areas Nl (A$2.92, +4.3%), Pacific Brands (A$0.76, +4.8%),Seven West Media (A$2.01, +3.3%) and Magellan Financial Group (A$11.00, +3.8%) whilst sitting on the sidelines like wallflowers were Linc Energy Ltd (A$0.975, -3.5%), Karoon Gas Australia (A$5.58, -2.6%).Regis Resources (A$3.40, -2.9%) and Ainsworth Game Technology (A$3.76, -1.6%)

Volume would not even get a super model out of bed!

Stocks in the News

Big day for Crown (A$12.60, +3.2%) having dealt themselves a new Casino licence. Of course it is not called a casino by ‘Fatboy Slim’ Barry but a VIP executive gaming experience. I call it the thin end of the wedge! Obviously Crown were delighted while Echo Etertainment Group (A$2.76, -5.2%) were disappointed.

Cudeco (A$1.87, -1.8%) continued to bobble around after yesterday’s positive announcement on production but finished a tad down having hit 194 earlier. Pharmaxis Ltd (A$0.145, +3.6%) was slightly better following the awarding of two grants today. And in other house stocks, SMS Management & Technology (A$5.09, +6.7%) had a great day following our analyst’s recommendation as a strong buy after their recent acquisition. And Data#3 (A$1.13, +6.1%) was appointed by Ipswich Council as a “service cloud”. Yeah I didn’t know what it was either!

Big winner this week is iron ore. Prices rose to six-week highs overnight and are on track to post their biggest weekly gain in six months as Chinese steel mills replenished run-down inventories, although caution is rising after the sharp rally.

Australia’s benchmark bonds are set to deliver their worst losses on record to international investors, after a world-beating run over 15 years. Bonds due in 10 years and longer lost 12 percent this year, after gaining 365 percent from 1998 through 2012, based on data compiled by Bloomberg and the European Federation of Financial Analysts Societie.

Tomorrows News Today

US jobs numbers tonight…only game in town. Analysts expect 165,000 jobs to have been added in June, below the 175,000 added in May. US earnings season kicks off next week with Alcoa due to disappoint early.

Samsung Electronics, the world’s biggest smartphone maker, posted second-quarter earnings that missed analyst estimates as sales of its flagship Galaxy S4 handset fell short of analyst expectations…hardly surprising everyone has one. And the new models are no better than the old so why upgrade?

Expect more turbulence from the Zombiezone tonight as they try to settle Portugal down and Greece tries to secure the next part of the Troika funding in exchange for sacking a new bunch of civil servants. A Greek government minister said it wasn’t Greece’s fault that it couldn’t live up to the demands of a flawed bailout program. “There are failures [by Greece], but you assume that the program that has been effectively imposed on us is perfect, which is far from the case.” It just isn’t fair!

Brussels has threatened to suspend two data sharing agreements with the US, in an escalation of transatlantic tensions over claims that America’s intelligence agencies have been spying on European citizens and embassies.

Its official it’s now too hard to work out the numbers from China. It has now suspended the release of industry-specific data from a monthly survey of manufacturing purchasing managers, with an official saying there’s limited time to analyze the large volume of responses. “We now have 3,000 samples in the survey, and from a technical point of view, time is very limited — there are many industries, you know,” Cai Jin, vice president of the China Federation of Logistics & Purchasing. See they don’t even have to lie anymore!

Big game tomorrow. I think the winner is Rugby whoever wins, but I am a Lions fan. Shame they are all Welsh! And go Andy Murray, shame he is a Scot!

Clarence

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