AFTERNOON REPORT
(4.30pm AEST)

Local stocks rallied once again today, after Eurozone leaders agreed on a second bailout package for Greece, sending markets around the globe higher. Hopes are also rising that a deal to lift the US government's maximum borrowing power, or so-called "debt ceiling" will also be reached by the August 2nd deadline.

The Euro-zone package for Greece amounts to €159 billion in aid, including official loans and contributions from the private sector. Meanwhile, if a deal to raise the US debt ceiling is not reached by next Tuesday, the US faces a default and likely credit downgrade.

The All Ordinaries Index (XAO) gained 47.9pts or 1pct to 4674.1 while the S&P/ASX 200 Index (XJO) firmed by 46.9pts or 1pct to 4602.9.

Over the course of the week, the market rose 2.9pct, however volumes remained light, suggesting some investor caution was still at play.

Financial stocks led the gains offshore and our financial sector rose 1.8pct today. Commonwealth Bank (CBA) CEO Ralph Norris today announced his intention to retire at the end of November. Sir Ralph will be replaced by Ian Narev, CBA's current head of Business and Private Banking, which includes the CommSec business. Shares in CBA added 1.6pct to $50.52 while Westpac (WBC) firmed by 2.2pct to $21.60 and the NAB (NAB) was up 2.5pct to $25.22 while the ANZ (ANZ) gained 2.2pct to $21.73. Macquarie Group (MQG) shares firmed by 3.3pct to $30.06.

Based metals prices were mixed on the London Metals Exchange overnight and index leader BHP Billiton (BHP) today fell 0.3pct to $43.43 while rival miner Rio Tinto (RIO) gained 0.2pct to $82.50. Gold prices eased overnight, with Newcrest Mining (NCM) shares easing by 1.4pct to $40.02.

Retail stocks recovered today, with shares in Myer Limited (MYR) up 4.2pct to $2.50 and David Jones (DJS) firmer by 2.2pct to $3.19. Shares in JB Hi-FI (JBH) gained 1.7pct to $15.74.

One of the worst performers today was regional pay TV operator Austar. Its shares tumbled after the competition watchdog, the ACCC, asked for more information before agreeing to Foxtel's $1.9 billion bid for the company. NewsCorp (NWS), a part owner of Foxtel, fell 1.8pct to $15.20 while Telstra (TLS) which is Foxtel's majority shareholder, closed steady at $3.06.

Economic data released today showed prices of imported goods rose by 0.8pct in the June quarter, driven largely by the surge in oil prices. Import prices are one percent lower than a year ago. Import prices for consumption goods were at the lowest levels in 19 years. In fact prices were at or near record lows across a whole host of consumer products including furniture, computers, mobile phones, machinery equipment, travel goods, toys and sporting goods and electrical equipment. The index of imported electrical appliances fell by 4.1pct in the quarter to the lowest reading in records going back 20 years. Electrical appliances are almost 16pct lower than a year ago. The index of import prices for business equipment (capital goods) have fallen to the lowest levels in 26 years. Prices of export goods rose by 6pct in the June quarter. Export prices are up 10.5pct on a year ago.

The Australian dollar rallied along with the equity markets and at 4pm AEST was worth US108.5c, £0.6649 and €75.28c.

On the market overall, a total of 2.29 billion shares were traded, worth $5.12 billion. 761 were up, 345 were down and 327 were unchanged.

At 4.15pm AEST on the ASX24, the futures contract was at 4577, up 43pts.

Ahead tonight, four Dow components release earnings in the US: Verizon, General Electric, McDonalds and Caterpillar. Other companies include former Dow member Honeywell, imaging company Xerox and oil firm Schlumberger.

(From Juliette Saly, CommSec Market Analyst)