Australian Stock Market Report – Afternoon 6/17/13

MARKET CLOSE REPORT

(4.30pm AEST)

The Australian market had a very volatile start to the week, with stocks rallying strongly in the dying minutes of the session. Stocks slumped by as much as 1 per cent in the first hour of trade, only to steadily rise from 11am (AEST) onwards and spike in the final 30 minutes of trade. The All Ordinaries Index (XAO) closed 0.6 per cent higher.

The late rally can be attributed to the banks, as the big four rose decisively enough to drive markets higher this afternoon. The major miners finished lower, but not by a significant enough margin to hold the broader market back. The higher yielding banks rose by as much as 2.3 per cent. BHP Billiton (BHP) and Rio Tinto (RIO) eased slightly.

Inner ear implant maker, Cochlear (COH) presented to investors today, focusing on its latest product, the Nucleus 6; its smallest sound processor to date. COH rose by 2.6%.

By the close of business, 1.5bn shares changed hands, worth $4.9bn. 435 stocks finished higher, 513 were weaker and 360 remained unchanged.

Offshore tonight, Europe's trade balance for April will be issued at 7pm (AEST). A trade surplus of around €21bn is forecast by most economists. In the US, the National Association of Home Builders Index is issued along with the Empire State index (an influential regional survey, which assesses the health of New York's economy).

Tomorrow, the Reserve Bank's June meeting minutes will be issued. The RBA decided to keep rates steady at 2.75% in June, however issued one of the shortest accompanying statements on record. Economists will be dissecting the minutes closer than usual for any additional insights into the RBA's current thinking.

Across the region, Chinese manufacturing data will be out on Thursday and always has the possibility of moving markets and currencies. Our largest trading partner has not been improving at the pace hoped for.

In Europe this week, leaders and finance ministers will be meeting to discuss the plethora of challenges facing the economic bloc. The G8 meeting will be taking place in Northern Island. In the US, the Federal Reserve's monthly meeting on monetary policy will be the highlight. Investors around the world will be watching for clarification on the central bank's plans to taper its bond buying program.

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