Australian Stock Market Report

MID-SESSION REPORT
(11.45am AEDT)

The Australian sharemarket has kicked off the week in positive territory, with the All Ordinaries Index (XAO) up 0.2 per cent or 10.6 pts to 4744.4 at lunch. Japanese markets are closed today for Coming of Age Day; a day which celebrates those in Japan turning 20. Mixed performances from global markets last week, with shares in the U.S (Dow) up 0.4 per cent, Australia's ASX200 slipped by 0.38 per cent while French and German shares slipped by 0.5 per cent.

The miners are holding the rest of the market back, with BHP Billiton (BHP) down 0.44 per cent or 16 cents to $36.52 while the smaller Rio Tinto (RIO) is 0.18 per cent or 12 cents weaker to $65.67. Australia's biggest iron ore miner, Fortescue Metals (FMG) is down 0.95 per cent or 4.5 cents to $4.68. Steel company, Bluescope Steel (BSL) announced a restructure; around 170 job cuts costing in the order of $17 million. BSL shares are down just 0.27 per cent or 1 cent to $3.69.

The major banks are mixed, with Commonwealth Bank of Australia (CBA) up 0.46 per cent or 29 cents to $61.67 while National Australia Bank (NAB) is 0.43 per cent or 11 cents stronger to $25.68. Westpac (WBC) is down 0.55 per cent or 14.5 cents to $26.43 while ANZ Banking Group (ANZ) is easing by 0.14 per cent or 4 cents to $25.21.

Last week, the European Central Bank (ECB) and the Bank of England (BoE) both kept rates unchanged at 0.75 per cent and 0.5 per cent respectively. Economic data provided further signs that things are improving for the world's second largest economy (China). Whitehaven Coal (WHC) plummeted temporarily following the media release hoax, however its shares are up 2.06 per cent or 7 cents to $3.46

It already has been a busy session for economic news, with inflation, housing finance and job ads all issued. The latest credit and debit lending figures are also out.

December's inflation gauge has risen by 0.4 per cent, taking inflation for the year to 2.4 per cent. This is smack bang in the middle of the Reserve Bank's (RBA) target band of between 2 per cent and 3 per cent. The market is currently factoring in a 33 per cent chance of a rate cut in February. The RBA will be meeting on Tuesday 5th February next.

The number of jobs being advertised online and in newspapers has fallen for the ninth straight month, with a fall of 3.8 per cent. There was a 0.5 per cent fall in the number of home loans issued in November despite the expectation of a 0.5 per cent rise in loans. The Australian dollar has taken a little dip following data. The value of all loans for investment purchases fell 3.3 per cent in November.

On the economic front this week locally, keep your eye on consumer confidence and monthly employment numbers out on Thursday. In the region, Chinese growth (GDP) figures are out this Friday. In Europe, the focus will be on the Eurozone (EZ) industrial production, trade data and Consumer Inflation (CPI). A number of reports are scheduled for release in the U.S, including inflation, production and retail spending. The earnings season in North America should be a little more exciting, with eBay, Goldman Sachs, JP Morgan Chase, BNY Mellon, American Express, Bank of America, Citigroup, Intel, General Electric and State Street all announcing quarterly profit numbers.

Following the start of daylight savings in October, major markets in the region will be trading between the hours mentioned below until April 2013.

The Hong Kong sharemarket trades in two sessions each day and will now open for trade between 12.30pm (AEDT) and 3pm (AEDT) while the second session is between 4pm (AEDT) and 7pm (AEDT).

Out of Japan, the first session will be between 11am (AEDT) and 1pm (AEDT) while the second session is between 2.30pm (AEDT) and 5pm (AEDT).

The Singapore exchange will be open for trade between 12pm and 3.30pm (AEDT) for the first session and then between 5pm and 8pm (AEDT) for the second.

U.S futures are currently pointing to a slightly stronger start to trade tonight. The U.S market trades between 1.30am (AEDT) and 8am (AEDT).

So far in trade at lunch, 561 million shares have been traded worth just $878 billion. 428 shares are up, 306 are lower and 325 are currently unchanged.

The Australian dollar (AUD) fell slightly following disappointing economic news out at this morning and buys US105.3 cents, €78.8 cents and £65.3 pence.

The AUD is the world's fifth most traded currency behind the U.S dollar, the Euro, Japanese Yen and British Pound. The AUD accounts for around 7 pct of all foreign exchange trades.

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