Another strong day as the US Government machine edges closer to what appears to be a blank cheque to spend, spend, spend! A big leap in equities across the board this morning held for most of the day although slightly off its highs. Everything was green today. In the finale we closed up 51 points at 5259 having topped out at 5266.The big bank blob marches forever forward with the four now at $173 as we head into AGM season. Two years ago they were $100 for the bank basket! Materials were also better today as BHP Billiton Limited (A$35.40, +1.0%), RIO Tinto Limited (A$63.20, +2.5%) and Fortescue Metals Group Ltd (A$5.26, +5.8%) all rallied hard. In fact gains in all except Echo Entertainment Group Limited (A$2.59, -4.8%),Iluka Resources Limited (A$10.46, -3.2%) and Sonic Healthcare Limited (A$15.41, -1.5%) in the big stocks. Other big winners were Crown Limited (A$16.44, +3.7%) hitting highs whilst Echo Entertainment Group Limited (A$2.59, -4.8%) should sack their Government relations team following news that Queensland is looking at issuing three more casino licences. Energy stocks also in the box seat today Santos Limited (A$14.89, +2.5%), Woodside Petroleum Limited (A$38.50, +1.2%) and Origin Energy Limited (A$14.61, +3.1%) leading the way. The Two W’s were better Wesfarmers Limited (A$41.76, +0.4%) and Woolworths Limited (A$33.85, +0.5%) whilst digital companies Carsales.Com Limited (A$10.80, +3.8%) bounced following the sell down last week and REA Group Ltd (A$40.41, +2.8%) continued higher as the Sydney housing bubble gets more and more inflated!

Grinners today were Hutchison Telecommunications (Australia) Limited (A$0.11, +14.6%),Linc Energy Ltd (A$1.40, +15.7%),Atlas Iron Limited (A$0.99, +4.8%),Fortescue Metals Group Ltd (A$5.26, +5.8%),Evolution Mining Limited (A$0.765, +4.8%), XRO, McMillan Shakespeare Limited (A$11.60, +4.2%) and Bt Investment Management Limited (A$4.86, +4.5%) whilst failure to launch included such venerable trading stocks as Energy Resources of Australia Limited (A$1.275, -6.6%),Echo Entertainment Group Limited (A$2.59, -4.8%),Whitehaven Coal Limited (A$1.685, -5.6%),Iluka Resources Limited (A$10.46, -3.2%),Sigma Pharmaceuticals Limited (A$0.55, -3.5%) and MYT.

Volume was once again pretty dismal considering the move in the market. At around the standard $3.5bn it was hardly spectacular. Asian markets were also better with solid performances across the region on US debt hopes.

Stocks and Stories

RBA minutes out today show the economy growing sub trend at 2.5%, they have no worries about the housing bubble, no reason to raise rates and probably no reason to cut them as yet. Cautious optimism with two flies in the RBA Ointment – jobs growth and a strong currency.

RIO Tinto Limited (A$63.20, +2.5%) announces solid 3rd quarter production numbers. Copper bit more surprising to the upside as Mongolia ramps up and Kennecott recovers. Coal battling but Iron Ore pretty good with record production. This is will help BHP Billiton Limited (A$35.40, +1.0%) too.

Telstra Corporation Limited (A$5.00, +1.4%) AGM today emphasised single digit growth, further cost cutting measures and growth in Network Applications and Services where revenue grew by 18 per cent, and our International revenue by 16 per cent .Mobiles now account for r 36 per cent of revenue – compared with 27 per cent in 2009. All looks promising with of course a look at the NBN where the new Gov is conducting a review.

Cochlear Limited (A$58.76, -1.9%) fell on deaf ears today after their AGM today. Net profit after tax was $132.6 million, up 133% on F12 (the F12 result included our provision for costs associated with the voluntary recall of the CI500 series implant). Looks like 2014 is a setup year for better things to come. Market will be impatient for progress with their new products though so don’t disappoint guys!

Sims Metal Management Limited (A$9.69, +0.6%) is to close its Melbourne lead smelter as it continues to reduce local manufacturing activities. The smelter operates as a joint venture with Nyrstar of Europe, and the planned shutdown follows the sale of the ventures secondary lead producing facility in Sydney two years ago.

This one is running longer than Neighbours, the former Rams Home Loans Group, RHG Limited (A$0.48, unch), has gone into a trading halt, after receiving another proposal from the Resimac/AMAC Syndicate.

Linc Energy Ltd (A$1.40, +15.7%) bounced today following news that its Wyoming EOR project was revalued to over USD$1.1bn.I feel a Doctor Evil moment coming on.. One Billion Dollars…hahhahahhah!Looks like this one has turned the corner following its moves to list in Singapore.

In other house stocks Buru Energy Limited (A$1.63, +4.8%) announced an operations update, Pharmaxis Ltd (A$0.135, +17.4%) put out their investor conference call, Bullabulling Gold Limited (A$0.051, +13.3%) forecast mine production of 2.5moz of contained Gold. All positive.

New car sales have fallen but are expected to bounce back now proposed changes to fringe benefits tax (FBT) have been scrapped. Sales in September totalled 94,150, down 0.1 per cent from August.

Tomorrow’s News Today]

US debt ceiling negotiations completed and the market is back to business as usual. Taper or Not. Suspect the Taper talk is now off the agenda now that this debacle has damaged confidence. Would expect the Dow to continue to power higher with a number of big IPOs in the wind, brokers will not rock the corporate fees bonanza that is coming their way. Expect lots of end of year upgrades to forecasts to appear once Obama does the deal.

Robert Shiller, who shared the 8 million Swedish crown ($1.25 million) prize with fellow laureates Eugene Fama and Lars Peter Hansen, said the U.S. Federal Reserve’s economic stimulus and growing market speculation were creating a “bubbly” property boom.

Blackberry moves to calm customers and investors. ”Yes we are having tough times, but we are on track to address them!” Reckon that’s an all over red rover comment.

And they are off! Aldi (UK) confirms 30 to 100% horsemeat in its beef products, feels like it has been led astray by its supplier! Nah don’t say that! Just in time for the Spring Carnival!

In more UK news, the Conservative Government is making it easier for Chinese national to visit the UK and London will be a big beneficiary. In 2010, only five per cent of Chinese tourists travelling to Europe visited the UK – in the same year Chinese visitors spent £184 million in the UK, compared to £1.38 billion in France. At the moment China is pretty much buying UK Plc! Massive investment by the Chinese in Thames Water,Airports,property developments ,cars and boats. If it’s not nailed down they are buying it. Seems a similar story here in the property market.

Boris has trumped the UK Chancellor in China with his humour, “I would just remind people who are hostile to foreign investment that London was founded by a bunch of pushy Italian immigrants, the Romans, and where would we be without them?” Exactly,I mean what have the Romans ever done for us eh? Well aquaducts, medicine, wine, law and order….but apart from that what have they ever done for us?

Clarence

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