• Another day, another negative. Once again we saw negative leads from the US driven by taper talk and disappointing (not so) Flash PMI numbers from China, disrupt the bulls. The falls were across the board and as the newly reformed Monty Python boys would say it was just a flesh wound. Could have been a lot worse as we continue to consolidate and pour over the forthcoming attractive IPOs that are on offer.In the final washup we closed down 20 points at 5288 for four in a row. Financials were weaker as the growth engine continues to run on only 5 cylinders, Commonwealth Bank of Australia (A$76.10, -0.8%) was the worse of the bunch with Westpac Banking Corporation (A$32.29, -0.4%) trailing behind. QBE Insurance Group Limited (A$15.70, +0.7%) bucked the financial trend as did Suncorp Group Limited (A$13.33, +0.5%) and Macquarie Group Limited (A$53.40, +0.6%).

• In resource land BHP Billiton Limited (A$37.56, +unch) was surprisingly firm as its AGM progressed in Perth today whilst RIO Tinto Limited (A$64.82, +0.1%) ,Fortescue Metals Group Ltd (A$5.75, -0.7%) and of course Newcrest Mining Limited (A$8.70, -4.0%) fell away.

• There were some bright spots in a sea of red ink with Origin Energy Limited (A$14.10, +0.6%),Santos Limited (A$14.38, +0.8%),Brambles Limited (A$9.38, +0.9%) and Aristocrat Leisure Limited (A$4.80, +4.3%) with Csl Limited (A$67.67, +0.2%) bouncing a little too.

• Telstra Corporation Limited (A$5.02, -1.0%) seem to be in the spotlight on their supposed deteriorating copper network and fell today having touched close to 520 a few days ago. Industrials were also slightly weaker as Incitec Pivot Limited (A$2.61, -3.3%),Amcor Limited (A$10.95, -0.6%),Orica Limited (A$23.06, -0.6%),Brickworks Limited (A$13.40, -1.0%) and retailers also fell away led by JB Hi-Fi Limited (A$20.10, -2.1%),Wotif.com Holdings Limited (A$4.30, -2.3%),David Jones Limited (A$2.90, -2.7%),Harvey Norman Holdings Limited (A$3.15, -0.6%) and Myer Holdings Limited (A$2.81, -1.1%).

• Runners and riders today included Energy World Corporation Ltd (A$0.40, +8.1%),Karoon Gas Australia Limited (A$4.21, +5.3%),Hutchison Telecommunications (Australia) Limited (A$0.096, +5.5%),Aurora Oil & Gas Limited (A$2.94, +4.6%),Aristocrat Leisure Limited (A$4.80, +4.3%),STW Communications Group Limited (A$1.545, +3.0%) and #MYT# whilst in the losers corner were understandably gold stock once again led by Evolution Mining Limited (A$0.67, -8.8%),Oceanagold Corporation (A$1.625, -6.9%),Beadell Resources Limited (A$0.795, -7.6%),Regis Resources Limited (A$3.01, -5.3%),Sirius Resources NL (A$2.27, -6.2%),XRO#,Peet Limited (A$1.41, -3.4%),Kathmandu Holdings Limited (A$3.21, -3.0%) and Panaust Limited (A$1.535, -7.0%)

• Volume was slightly better today but then it was a Thursday and it should build during the week. Aussie dollar was also hit on Taper tantrums wallowing around 93.1.RBA will be happy.Asaian market were marginally on the Taper tantrum with the exception of Japan. The Nikkei is up 45% this year!

Stocks and Stories

• In house stocks today Regeneus copped some profit taking but good to see Karoon Gas Australia Limited (A$4.21, +5.3%) bouncing off the $4 level convincingly. Fair to say that in mining services last one out take the canary with them. Boart Longyear Limited (A$0.34, -8.1%),Gr Engineering Services Limited (A$0.66, -4.3%),Mastermyne Group Limited (A$0.85, -4.5%),NRW Holdings Limited (A$1.195, -0.4%) and Resource Equipment Ltd (A$0.15, -3.2%).

• One of the big winners today was Unilife Corporation (A$0.715, +40.2%) as they announced a long awaited deal in the syringe market Hikma has signed up to 15 years of pre filled syringes as the potential of this one starts to finally emerge.

• BHP Billiton Limited (A$37.56, +unch) is holding it AGM in Perth and is seeking to establish its green credentials and cosy up to our glorious leader and take direct action on climate change.

• Big day for economists as they gather to talk about stuff with the RBA at their annual talk fest. Not sure what the collective noun is for a group of economists. A waste perhaps?

• Seems the media regulator has no issue with Murdoch taking over TEN. Seriously! Not sure anyone would even notice now given the ratings numbers from TEN. Their big hope for the programming is “So you think you can run a TV Station” Lachlan has entered.

• One of our global competitors who cannot be named for security purposes is predicting big falls for Iron ore ,gold, copper and soyabeans for 2014. 15% apparently and $1000 gold.

• Yesterday’s car crash that was WorleyParsons Limited (A$15.72, -1.8%) tried to rally itself but ultimately failed as downgrades start to hit the market as analysts move their numbers down to take account of the brave new world.

• Chinese not so flash PMI disappointed today with consensus around 50.8 being too high, with the result whilst still showing growth was a little underwhelming at 50.4.

• Not going to mention the cricket. Think I may have mentioned it once but think I got away with it.

Tomorrows News Today

• The UK is in a sustained recovery and does not face major inflation risks, Bank of England policymakers have said.

• And amidst the spying allegation on Indonesia it has emerged that Ikea was doing some spying of its own in France. Apparently spying on their staff and customers.Course all their bugs come in flat packs and take you three days to work out how to assemble them and then you find you have bits left over!

• Looks like the Fed is looking at creative solutions to end the QEIII period of free money including interest on banks reserves being cut. Someone should explain it to me one day!

• Full speed ahead and damn the torpedoes from those midget submarines as the Japanese confirmed that they will continue with their aggressive monetary policy. The Bank of Japan on Thursday also repeated its view that the economy is in recovery-mode. Data on Wednesday, for instance, showed that Japanese exports grew a stronger-than-expected 18.6 percent in October from a year before.

• The great rotation is starting as bond funds lose money to equity funds. Equity funds have seen massive inflows. There has been some $231 billion worth of inflows into stock funds this year, the most since records began in 2002 and well above the previous record inflow of $69 billion in 2010.

• And we now live in a world of bitcons as the digital currency continues to attract more and more mainstream commentary and fans. You can even now track the price on FX web sites now!

• In more tech news, Snapchat, which recently turned down a $3bn offer from faceplant, has announced that 70% of its users are female.

Clarence

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