Wow, that was a surprise. A 25 bps rate cut down to a low of 2.5%.Judging by the rhetoric coming from Uncle Glenn that may be the last though and perversely the dollar rallied! And all day we waited for this? The market oscillated between small losses and bigger ones with a low of 5087 before book squaring nearly saved the day. We closed down for the second day in a row but at least holding above the 5100 level. Banks were especially weak both before the announcement and after with WBC leading the way followed by NAB and CBA, although we did see some end of day tickling in the order matching. Other financials joined in the fun leaving losses for MQG, QBE, SUN, HGG but property trusts made up for yesterday’s losses with gains for GPT, SGP, MRV, WDC and GMG .

Some of the Material girls were easier with BHP down marginally whilst RIO firmed a tad and FMG soared after Nev talked it up yesterday at the Diggers and Dealers. TLS were back in favour as their big fat dividend cheque comes into sight. Results this week and expect a slight increase in the div I reckon. Well would be nice. Gold was nudging that 1300 level again and as such NCM fell in a heap as did others in the unloved sector. SLR continued their downward trajectory with KCN, RRL, SBM and BDR also weak. Media stocks were a touch firmer as APN, FXJ and SWM all to benefit from the election ads.

In energy stocks WPL, STO, OSH and ORG all gave up recent gains whilst the big energy winner was GUF as Gleneagles asset management bought 5%.Mining services continued to be on the nose with BLY, NWH, DCG and MLD all weaker. In industrial land CSR eased from their 2 year high while JHX and BLD eased too. Retail stocks should have been positive on the rate news but JBH, HVN, MYR and SUL all fell. Can’t please some apparently!

Grinners today were AGO, UOS, IGO, SGM and MMS whilst losers were RSG, DJW (ex Div 16 c), ERA, FLT, EVN, WTF and VAH .

Volume was again on the skimpy side as players awaiting the reporting season to kick off in earnest.

Stocks and Stories

DOW was quick off the mark with results this morning and obviously had something to crow about with better than expected numbers, however as reality set in they drifted lower after topping out at 4.10 earlier.

COH had record implants of nearly 27, 000 units which was up 16% plus net profits up 133% and the div up 2%.Someone was listening as the stock rallied after the results although off their high of 61.06

Bio Tech hopeful ISN today announced TGA approval to sell its AirSonea app. Apparently asthma sufferers wheeze into the app and then a Doctor in the cloud has a listen and advises on the best treatment.Hope they are not on Vodafone!

In economic news today we saw a trade surplus again with exports falling 1% and Imports down 2% resulting in a surplus of $602 million in June That followed a surplus of $507 million in May, the Australian Bureau of Statistics said on Tuesday.

And just to make us all feel better.That is if you own a home, house prices in capital cities gained 2.4% on average with Sydney, Perth and Darwin the big winners. Won’t help our kids buy a home but then that’s their issue.

And the ANZ jobs ads number was out today too and have fallen for the fifth-straight month in July and are 19 per cent below their levels a year ago, a private monthly survey has found.

Tomorrows News Today

The Holy Grail of the internet is of course China. Mobile usage is massive and everyone is trying to crack online purchases through their smartphones. These guys moved today. Tencent Holdings China’s biggest Internet company, began allowing its WeChat users to make online payments, less than a week after Alibaba said it blocked the messaging app.

I know we talk about Sovereign risk in Australia but we are not in the same league as this one. The Kenyan government has revoked all prospecting and mining licences granted during the first five months of this year after complaints about the issuing process. The country’s commissioner of mines, Moses Masibo, has been suspended.

The boss of Amazon, Jeff Bezos, has agreed to purchase the Washington Post newspaper for $250m (£163m).Mr Bezos is buying the paper and its other print properties in a personal capacity.The Post has been owned by the Graham family for 80 years.

Sony has rejected a proposal from activist shareholder Daniel Loeb to spin off part of its entertainment business, arguing it could still squeeze synergies from its marriage of content and hardware while promising greater disclosure.

Sub-prime mortgages, widely blamed as the cause of the financial crisis, have begun to re-emerge with a new lender unveiling a range of loans for borrowers with poor credit histories. Magellan Homeloans in the UK will offer mortgages of up to £400, 000 to people who have had county court judgments, individual voluntary arrangements (IVA) or even bankruptcy orders against their names. But borrowers will be charged interest rates starting at 8.55% compared to current “best buy” rates of as little as 1.5% on conventional loans.

The Eurozone’s recession could end in the third quarter, after official data showed that the region’s businesses had returned to growth for the first time in 18 months.This is going to be the story of the second half of the year.

And it looks like that as Dad looks at a jail sentence marina Berlusconi may be in the box seat to take over his throne. Apparently her parties aren’t nearly as good though.

And finally a Queensland Polllie has resigned followed a texting scandal where he texted pictures of his private parts in a glass of wine.. brings a whole new meaning to Coq au Vin.

That is all