AFTERNOON REPORT
(4.30pm AEST)

The local share market has finished the trading week on a positive note, with the All Ordinaries Index (XAO) adding 7.6pts or 0.2pct to 4277.4 and the S&P/ASX 200 Index (XJO) firmer by 6.7pts or 0.2pct to 4194.7.

Stocks rose strongly in early trade, as investors embraced a long awaited speech from US President Barack Obama on his plan to stimulate the American economy. President Obama asked Congress to approve a US$447 billion ($423 billion) plan to create more jobs in the US through tax cuts and government spending. The All Ordinaries Index reached a higher of 4311.4 in morning trade.

Over the course of the trading week, the XAO lost 1pct.

The financial sector rose by 0.2pct. Westpac (WBC) gained 0.2pct to $20.13 with the lender today being named the world's best bank for corporate sustainability in 2011/12 by Dow Jones (DJI) and Swiss investment firm SAM. Shares in the National Australia Bank (NAB) gained 0.5pct to $23.32 while Macquarie Group (MQG) was down 0.9pct to $23.

Mining giant Rio Tinto (RIO) came off earlier highs, to close slightly lower at $71.25. RIO has announced it will invest US$310 million to ensure it has sustainable water supply for its iron ore operations in the Pilbara region in Western Australia. Index leader BHP Billiton (BHP) fell 0.7pct to $37.91 despite strength on the London metals exchange overnight. Gold miner Newcrest Mining (NCM) firmed by 0.8pct to $39.86.

In the consumer staples space, retailer Metcash (MTS) fell 0.7pct to $4.19 after the competition watchdog said it would appeal a Federal Court judgement paving the way for the retailer to buy the Franklins supermarket business.

Department store Myer (MYR) rose 1.2pct to $2.26 on a management reshuffle.

There was no economic data released in Australia today, with economists focused clearly on the Asian region. China's annual inflation rate fell from 6.5pct to 6.2pct in August, in line with expectations. The core inflation number (CPI) grew by just 0.3pct in the month after a 0.5pct rise in July.

Food inflation, which has been the main driver of the recent higher reading was more sedate in August. Annual food inflation eased from 14.8pct to 13.4pct in August. Non food inflation recorded a modest increase with the annual rate rising from 2.9 to 3pct in August compared with a year ago.

Japan´s Nikkei index shed 0.7pct, as investors remained non-committal after data showed the economy contracted more severely than previously reported in the April-June period following the March natural disasters.

China´s inflation data helped to bolster the euro and commodity linked currencies, while the greenback came off highs after Federal Reserve Chairman Ben Bernanke gave no indication he is planning fresh stimulus for the US economy. At 4pm AEST the Australian dollar was buying US106.21c, £0.6655 and €76.41c.

On the market overall, a total of 2.13 billion shares were traded, worth $4.2 billion. 619 were up, 423 were down and 349 were unchanged.

At 4.30pm AEST on the ASX24, the futures contract was at 4176, down 11pts.

Ahead tonight; July wholesale inventories will be released and are expected to have risen by 0.7pct. Before the opening bell, retailer Lululemon will release earnings. At 4.30pm the Dow Jones Futures index was up 67pts or 0.5pct to 11,293pts.

(From Juliette Saly, CommSec Market Analyst)