Market Review

Well we started with a bang as the market galloped ahead completely ignoring the consumer confidence numbers and only looking at overseas strength and commodity markets.It hit an intraday high of 4950 which was my target and then shock, horror, China. High noon saw pretty dreadful numbers from our biggest trading partner. This was enough to knock the markets confidence considerably and we traded down to 4898 before finding some buying again. It’s been a pretty good performance since KRudd was returned to the throne after the wedding episode got rid of the house of Gillard. The Market has rallied 6% in a few weeks and the Coalition odds have been slashed as the resurgent Labour party looks to capitalize on the Milky Bar kids honeymoon period. Of course what would be really good for the market is the election date, but that now looks a long way off. The phoney cold war to continue.

Resources proved the better stocks today especially #BHP# and #RIO#, even #NCM# was up!. The continuing strength of oil and iron ore and weakening Aussie dollar is shining the spotlight on these. Financials were still in favour though #CBA#,#IAG#,SUN# continued to shine whilst #MQG# is drawing strength from the performance fee induced bounce in wealth managers. #PPT#,#MFG#,#AMP# and #MQG# all starring. Property trusts or REITS were a bit on the nose today #DXS#,#GMG#,#SGP# and #WDC# all suffering the slings and arrows. In industrial stocks today #CSL#,#LEI#,#BXB#,#SVW# and #ASB# fared well.

In the grinning like a Cheshire cat circle today were #BKN#,#EWC#,#MQA# and #LEI# with the meteoric rise of #XRO# continuing. Back in the casualty ward though were #PNA#,#SFR#,#CRZ#,#DXS# and #GMG#.

Volume remains an issue but slightly better than previous sessions! Still no supermodels getting out of bed too quickly though!

Stocks in the News

The rush to hybrids is bigger than a Prius convention as #WBC# joined the fray again today after #ANZ# issued a $1bn worth of theirs recently. There seems no end to the investors insatiable appetite for these products. Safe as houses? Personally I prefer the underlying equity but that’s just me! Westpac announced it intends to raise up to $750 million through subordinated notes. The notes are unsecured debt securities – which pay investors a return of 2.30 per cent to 2.45 per cent on top of the 90 day bank bill swap rate.

#KCN# received their environmental approvals for their Chilean project. Didn’t help though! Other Golds also suffered in the house universe as #EVN#,#SLR#,#RRL# and #OZL# fell.

ING said it had agreed to sell its investment management operations in South Korea to Australian financial services group Macquarie.

Economic news today from here: Consumer confidence held steady in July as people became more optimistic on the economic outlook even as they fretted about their personal finances.

The very mixed survey of 1,200 people by the Melbourne Institute and Westpac Bank showed its index of consumer sentiment edged down by 0.05 per cent in July from June, when it rose 4.7 per cent. That left the index 3.0 per cent higher than in July last year at 102.1, meaning optimists still slightly outnumbered pessimists.

Whilst China spoiled the party again with shocking numbers today ,way below expectations as China’s exports fell 3.1 per cent in June from a year earlier, the first decline since January 2012, while imports dropped 0.7 per cent, leaving the country with a trade surplus of $US27.1 billion for the month, the Customs Administration said on Wednesday. This is starting to look like a Grimm Fairy tale! No one believes them anyway!

Tomorrow’s News Today

Zombieland expected to open mixed ahead of Uncle Ben’s speech and FOMC minutes tonight.

It must be a bull market in the UK with the FTSE at 6,500 its back to the halcyon days of privitisation with news that the Royal Mail is set to float on the exchange raising $2bn The Royal Mail employs 150,000 people and can trace its history back to a forerunner established in 1516 during the reign of Henry VIII. The General Post Office (GPO) was then brought into being in 1660. Adhesive postage stamps were introduced in 1840.Historic moment.

Britain’s Treasury will hand control of Libor, London’s tarnished inter-bank interest rate, to the owner of the New York Stock Exchange.NYSE Euronext has been selected to take control of the offered rate, which is used to price some 200 trillion pounds of loans and other financial products around the world.

Spare a thought for the Greeks. Greece’s economy could shrink by as much as 5 percent this year, the Athens-based IOBE think tank said on Tuesday, revising down its previous projection and offering a more pessimistic forecast than the country’s foreign lenders. Not good for future bailouts as the death spiral continues.

China’s money-market rate dropped to a six-week low as the central bank refrained from draining funds, further easing a cash squeeze. The seven-day fixing rate, which measures funding in the banking system, dropped one basis point to 3.59 percent.

Masao Yoshida, the Fukushima nuclear chief who led efforts to stabilise the crippled plant after the March 2011 earthquake and tsunami, has died at the age of 58.Mr Yoshida died on Tuesday in a Tokyo hospital, a spokesman for plant operator Tepco said.He had been suffering from oesophagal cancer, which Tepco said was not linked to his work at the plant.

Ashes starts tonight!

Clarence

XXX

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