MARKETS

The Australian share market started the trading week firmly in the red today, following a sharp fall in the iron ore price which weighed on mining stocks. The All Ordinaries Index (XAO) closed down 46.2 points or 0.8 per cent to 5430.8 after rising 1.1 per cent over the course of last week.

The Australian sharemarket is having its worst day since early February, partly driven by a fall in China's monthly trade surplus and a weaker iron ore price. The All Ordinaries Index (XAO) is down 0.7 per cent, with the mining sector the the biggest loser. This is only the sixth time in 23 sessions that the local market is losing ground.

We start the week on a downbeat note with a raft of disappointing headlines from the weekend putting Asia on the back foot. While non-farm payrolls surprised significantly to the upside on Friday, disappointing China data, escalating Russia/Ukraine concerns and the missing Malaysian aircraft have all contributed to a sombre mood.

In US economic data, non-farm payrolls (employment) rose by 175,000 in February, ahead of forecasts for a gain of 149,000 jobs. The unemployment rate rose slightly from 6.6% to 6.7%. Average earnings grew by 0.4%. The trade deficit expanded from US$38.7 billion to US$39.1 billion in January, just ahead of forecasts.

China is optimistic that by the end of 2014, it would have signed a free trade agreement with Australia. Chinese Commerce Minister Gao Hucheng said in a press briefing on Friday that the prospects of inking the deal as soon as possible were optimistic.

Although the Malaysian government is not dismissing the possible that the cause of Flight 370's disappearance is terrorism after it was revealed that two passengers used stolen Italian and Austrian passports, rescuers are studying another angle.

Passengers of the Malaysian Airlines plane that went missing on early Saturday while flying over South China Sea included telecom executives, metal traders, beach goers, two babies, calligraphers and a Queensland couple who are empty nesters. The Sydney Morning Herald identified the Aussie empty nesters as Catherine and Robert Lawton, 54 and 57, who are flying to different parts of the world after their three adult daughters have left home.

The ill-fated Malaysian Airlines plane is still missing, Malaysian Prime Minister Najib Razak said on Saturday. He quoted the confirmation from the Vietnamese Navy that it has not yet located the wreckage of the jet in its territorial waters to belie a previous report that the plane crashed into the South China Sea.

The last 5 trading days have seen the local market progress as investor focus shifted from the concerns surrounding The Ukraine and Russia towards more encouraging news in relation to the domestic economy. As a result the market recovered from the 0.4% loss on Monday to be ahead by almost 1% for the week at the close of trade this afternoon.

The Australian sharemarket is firmer thanks partly to a surge in U.S. equities overnight and yesterday's better than expected retail spending and trade figures locally. The All Ordinaries Index (XAO) is rising by 0.3 per cent; making it the fourth straight day of improvements and a 5.5 year high for local stocks.

Risk assets mostly extended gains overnight, with some positive US economic data and dissipating Russia/Ukraine concerns helping sentiment. The latest on the Crimea front is that it will hold a referendum on 16 March on whether to join the Russian Federation or not. That could be the next talking point as the international community seems to be against this move.

In US economic data, new claims for unemployment insurance (jobless claims) fell by 26,000 to 323,000 in the latest week. Economists had tipped a result near 338,000. And factory orders fell by 0.7% in January, a weaker result than the 0.4% decline expected by economists. Productivity grew at a 1.8% annual pace in the December quarter with labour costs down 0.1%. Economists had tipped a 2.5% lift in productivity and 0.9% fall in labour costs.

Just a week after Qantas Chief Executive Alan Joyce confirmed it would slash 5,000 jobs over three years to cut costs by $2 billion, the embattled flag carrier started to yield its axe with 90 full-time check-in staff at the Sydney international airport its likely first victims.

The Australian sharemarket ended unchanged, following two days of gains. Despite the market's uninspiring finish, the All Ordinaries Index (XAO) is still trading at a five and a half year high. Better than expected retail spending and international trade reports briefly propped the sharemarket higher earlier today.

The ASX 200 was under pressure from the outset on Thursday. At its worst levels the index was down by 24 points. It didn't take long for prices to consolidate and move off the lows of the session. The catalyst for the morning session came in the form of the better readings on trade and retail sales at 11:30 AEDT.

With the Russia/Ukraine threat significantly downgraded, risk sentiment has remained steady in global markets, with major asset classes relatively unchanged. Discussions are now taking place among leaders and while there is nothing concrete yet, it is encouraging to see them working on a solution together. News that Ukraine will receive around $3 billion in emergency aid from the EU also helped sentiment, particularly in the emerging markets complex.

In US economic data, the ISM services gauge eased from 54.0 to 51.6 in February, short of forecasts centred around 53.5. But the rival Markit services index rose from 52.7 to 53.3. The ADP employment index showed that there were 139,000 private sector jobs created in February, short of forecasts for a gain of 160,000. And the Federal Reserve Beige Book notes that economic activity declined in two of 12 regions, largely due to harsh winter weather.

The Australian share market has closed at its highest level since mid-June 2008, spurred on by better than expected economic growth numbers and a strong rally on Wall Street during Tuesday's trade.

The Australian sharemarket is up by 0.6 per cent, thanks to easing concerns (for now) relating to an Eastern European conflict. U.S markets surged by 1.5 per cent while major European stocks jumped by as much as 3.5 per cent overnight. President Putin ordered troops near the Ukrainian border to return to their bases. As expected, this resulted in an outflow of money from 'safe haven' assets such as gold, the greenback and U.S. treasuries. Around a quarter of Europe's oil and gas supplie...

The beginning of the annual National People Congress in Beijing today will be the first major forum since announcing some of the largest policy changes in three decades at the Third Plenum in late October last year.

In US economic data, the ISM New York index rose from 622.6 to 626.1 in February. The IBD economic optimism index rose from 44.9 to 45.1 in March. And chain store sales fell 1.3% in the latest week to stand 2.7% higher than a year ago.

Among the Canadian provinces and territories, Alberta is the most attractive jurisdiction for mining investment in the province, the annual global survey of mining executives said.

The Australian share market has started the new trading month in the red, dragged down by weakness in financial and mining players. The All Ordinaries Index (XAO) closed lower by 18 points or 0.3 per cent today, after rising four per cent in February.

The ASX 200 traded lower at the open thanks to the combination of stocks going ex-dividend and the defensive tone inspired by developments in the Ukraine. The market continued to trade lower over the course of the morning with few signs of consolidation. As lunchtime approached the index was still making new lows with a loss of 1.1% or 62 points.

Markets have a lot to digest this morning; a geopolitical crisis in Ukraine, China's PMI index beating expectations (which was a surprise) and the start of central bank week. But the biggest talking point is the developments out of Crimea.

In US economic data, preliminary figures showed the US economy grew at a 2.4% annual rate in the December quarter, just short of forecasts but down from the 3.2% ´´flash´´ reading. Consumer sentiment rose from 81.2 to 81.6 in February. Pending home sales rose by 0.1% in January. And the Chicago purchasing managers index rose from 59.6 to 59.8 in February.

Qantas continues to suffer from turbulence, not only because of the $252 million first-half loss reported on Thursday and the looming job cuts of 5,000 spread over three years. The threat of being unemployed had angered the unions that are now threatening to strike which could further cripple the financially ailing air carrier. To add fuel to the raging labour fire, Qantas is shouldering the $4 million bill of flying the cast and crew of American TV show Modern Family which is shooting a one-off...

Australia is expecting higher export of live sheep and cattle after the Bahrain market reopened over the weekend, while major blocks to resuming live animal trade with Iran has been removed.

The Australian share market closed modestly lower today, and shed 0.6 per cent over the course of what was a very busy week on the corporate reporting calendar.