Another day when we tried really , really hard to rally out of the blocks but our hearts weren’t really in it. Mildly positive leads coming in to today’s session evaporated in a sea of pre- election apathy and the imminent US jobs numbers tonight also ensured players were happy to sit and wait this one out. To put things in perspective the market closed last Friday at 5135 and this afternoon, after a bit of a tickle up at the death, at 5145.says it all really. Syria and election have dominated. There is always some excuse isn’t there.

Anyway a day of mixed markets with banks flirting with losses before dusting themselves off, whilst resource stocks were a little softer especially BHP Billiton Limited (A$35.16, -0.3%) given the stronger dollar. Gold stocks were hit hard again today led by Big Daddy Newcrest Mining Limited (A$12.80, -3.0%) but Silver Lake Resources Limited (A$0.845, -6.1%), Evolution Mining Limited (A$0.845, -4.0%),BDR#,KCN# all fell in behind. Telstra Corporation Limited (A$4.80, -0.4%) also lost ground as the NBN will become an issue on Monday and how they fare in a brave new Abbott world. After all he is no techie and after yesterday it seems that Malcolm has policies made for him and he has to defend them without any knowledge of them. Not a great environment maybe for TLS.

Energy stocks were mixed despite oil rising with Woodside Petroleum Limited (A$39.22, +0.7%) better, Oil Search Limited (A$8.40, -1.5%) and Santos Limited (A$14.96, -0.6%) easier and WorleyParsons Limited (A$22.17, +1.7%) and Miclyn Express Offshore Limited (A$2.14, +9.7%) looking good. Retailers were mixed with Harvey Norman Holdings Limited (A$3.09, +3.3%) ,Funtastic Limited (A$0.17, +6.3%),Nick Scali Limited (A$2.56, +4.5%) and Pacific Brands Limited (A$0.765, +3.4%) better whilst Premier Investments Limited (A$8.09, -1.7%),Kathmandu Holdings Limited (A$2.41, -5.9%),Breville Group Limited (A$8.80, -0.6%),Ruralco Holdings Limited (A$3.30, -2.4%) all worse off.

Big cheesy grinners today included Miclyn Express Offshore Limited (A$2.14, +9.7%),Village Roadshow Limited (A$6.64, +4.9%),Challenger Limited (A$5.09, +3.2%),Oceanagold Corporation (A$1.835, +1.7%),Harvey Norman Holdings Limited (A$3.09, +3.3%) and ResMed Inc. (A$5.42, +2.7%) whilst in the canine club were Transfield Services Limited (A$1.185, -6.3%),Kathmandu Holdings Limited (A$2.41, -5.9%),Energy Resources of Australia Limited (A$1.255, -4.6%),Evolution Mining Limited (A$0.845, -4.0%) and Newcrest Mining Limited (A$12.80, -3.0%).

Volume was pretty pathetic today as you would expect the day before the election.

In Asian markets the Nikkei was down but green on most of the other score cards in the region in front of US jobs numbers tonight .

Stocks and Stories

Wesfarmers Limited (A$40.40, +0.5%) announced today that it had applied for a banking licence for its Coles Supermarkets business. Dire Straits are warming up their foam guitars in the background with “Money For Nothing”, hoping to do as well as Status Quo have.

In BC Iron Limited (A$4.00, -2.4%) Consolidated Minerals has exited the stock with more than a sixteen-fold return on its initial investment. Nearly three years after it won a messy fight for control , ConsMin, which is controlled by Ukranian billionaire Gennadiy Bogolyubov, have exited for $111m. The placement was done at a small discount to market of 3.90 by Macquarie.

The International Monetary Fund estimates Australia’s gross borrowing has almost tripled to 27.6 per cent of the economy, compared with 2007, when Prime Minister Kevin Rudd was first elected.

The Australian dollar continues to play a bigger role in the $US5.3 trillion-a-day global currency market, with its share of total turnover rising to 8.6 per cent in the last three years.

Moodys has downgraded the big four banks sub debt to something a little more risky. No effect on the head shares credit of course but does highlight these hybrids are not as safe as some investors think. Then again these ratings agencies rated most of the sub-prime rubbish as AAA. And it has also raised the outlook on German Banks from negative to stable.

Index swaps are now showing that there may be more a chance of rate rises in the coming year after the RBA comments on Tuesday. Rates are being squeezed higher around the World. May have seen the bottom of the cutting cycle.

Japan’s fishermen rejected any release of contaminated water from Tokyo Electric Power Co. (9501)’s Fukushima atomic station into the ocean, a step the country’s atomic regulator last week indicated may be needed.

Tomorrows News Today

Here are the headlines:

Abbott wins historic victory in a complete rout of Labour. Kevin Rudd loses his seat and blames Julia for destabilising his election campaign. Rupert is smiling down on his loyal subjects. Looking forward to Mondays front page.” A victory for the true deceivers.”

US jobs numbers come in better than expected around 190,000 and ‘Tapering’ talk is back on the agenda despite the Syrian distractions.

Meanwhile in Russia, Obama snubs David Cameron, who? No consensus for a limited military strike, so vows to go it alone with French support. The French vow to send another really big statue to decorate New York harbour but stop short of attacking Syria citing a good lunch offer.

China has another set of weekend numbers to tantalise the markets for Monday morning. Why do these guys have to be different to the rest of the World and release their economic numbers on a weekend. Don’t they know about penalty rates. They must have work choices for Civil servants (the choice is work or get sent to the country!)

Clarence
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