POLITICS & POLICY

Chinese car aficionados who have been long eyeing that Daimler, Volkwagen and BMW, among a few, may very well decide to purchase that dream car now as Western automobile makers may likely reduce certain percentages off the selling price of their products in a bid to meet sales quotas amid the economic cuts and rising fuel costs in China.

Combined steel output by the world's various steel-making countries grew marginally in February, up by 1.9 per cent to 119 million tonnes compared from a year ago, the World Steel Association (WSA) said on Tuesday.

A slow, lackadaisical trading is anticipated on Wednesday's Australian stock market as a grueling impact of low commodity exports further hammered down potential export earnings in correlation with China's weakening demand.

The two Italian men who were kidnapped from the eastern Indian state of Orissa are still not released. Rebels say their demands must be met.

Bell FX Currency Outlook: The AUD has opened this morning below USD1.0500 after reaching a level above USD1.0600 yesterday after the RBA's March meeting minutes were released.

MORNING REPORT (7am AEDT - Due to the change in daylight saving hours in the US - Wall street now closes at 7am AEDT)US housing starts fell 1.1pct to a seasonally adjusted rate of 698,000 units in February. However January starts were revised modestly higher. Building permits which lead starts, ticked up to 717k, suggesting that the fall in starts was just a temporary dip. The underlying trend is of very gradual improvement.

U.S. stocks fell as concerns about China's economic growth gave pause to a rally that pushed benchmarks to their highest levels in years. Stocks opened lower Tuesday and held losses in afternoon trading.

MARKET CLOSE (4.30pm AEDT)The Australian sharemarket completely wiped out the modest gains recorded yesterday, with the All Ordinaries Index (XAO) falling 0.4 pct or 15.6 pts to 4365.6. On Monday, the XAO rose by 16 pts.

Australia is getting spooked, after global mining, oil and gas company BHP Billiton revealed observing signs of a further weakening demand of iron ore from China, instantly kicking the Australian dollar to plummet against the U.S. dollar to below $1.0600.

The federal government has agreed to accommodate concessions on its Future of Financial Advice legislation, a move that is said was necessary to provide more breathing room for the proposal to win parliamentary approval.

Canada-based Ucore Rare Metals Inc. has put up a new team of mine-development specialists to facilitate the immediate production of its rare earths project at Southeast Alaska.

Bloggers charge it was a publicity stunt that resulted in the rare tiger's death.

Prime Minister Julia Gillard scored a victory Monday night as the Australian Senate approved her proposed minerals resource rent tax (MRRT) that will soon collect 30 percent tax from profits generated by the country's mining giants.

Australian rare earths miner Lynas Corp. welcomed the creation of a Malaysian parliamentary select committee (PSC) to intervene on its beleaguered Lynas Advanced Materials Plant (LAMP) facility, saying it is confident the committee will not be used as mileage to further harass the existence of its yet to be operational plant in Gebeng, Kuantan.

Another session of positive leads from overnight trades in the U.S. and partly from European markets will bode well for Tuesday's trading in Australia.The markets in the U.S. moved forward with Apple Inc. leading the way with shares selling $600 a piece in reaction to company announcements that cash dividends and a buy-back scheme will be the way to go forward spending its billions in cash coffers.

MORNING REPORT (7am AEDT - Due to the change in daylight saving hours in the US - Wall street now closes at 7am AEDT)The Midwest manufacturing index rose from 89.0 to 90.1 In January. The National Association of Home Builders sentiment index was unchanged at 28 in March - the highest level since June 2007.

Stocks rose Monday, testing fresh multiyear highs, after a steady reading from home builders and news of Apple's plan to return cash to shareholders. Blue chips started the day in the red but rebounded after noon. The Dow Jones Industrial Average added 26 points, or 0.2%, to 13258.62.

Bell FX Currency Outlook: The AUD is unchanged this morning, currently trading at USD1.0605, due to another quiet offshore trading session

A robbery suspect in Sydney died after police confronted him with a Taser when he reportedly resisted arrest, prompting the NSW Council for Civil Liberties to renew its calls for a Taser use review.

With Pakistan having awarded some 47 exploration licences to various oil and gas exploration companies from 2007 up to last year 2011, a total of 38 new oil and gas reservoirs have been unearthed that helped boost the country's combined oil and gas production to 4,165 million cubic feet per day (MMcfd) from the previous 3,973 MMcfd.

MARKET CLOSE (4.30pm AEDT)The Australian sharemarket managed to rise slightly today following a 1.5 pct rise in local shares last week. The All Ordinaries Index (XAO) edged higher by 0.4 pct or 16.5 pts to 4381.2. Almost all sectors ended in the black, with some weakness from the consumer staples and telcos holding the market back.

The Australian economy lags behind its peers among the developed nations in readiness for less carbon emissions, according to the new global climate leadership review released Monday by the Climate Institute.

Indian gold jewelers led by members of the All India Gems and Jewellery Trade Federation (AIGFTF) staged a protest action over the weekend to complain the 2 per cent increase on basic customs duty onstandard gold bars, gold coins and platinum that is proposed by the Indian government.

WikiLeaks has announced over the weekend that its founder, Australian national Julian Assange, will vie for a Senate seat next year amidst his ongoing legal troubles.

The mining tax will keep its present form as Prime Minister Julia Gillard insisted on Monday to "bring the legislation to Parliament exactly as we outlined," even as her deputy, Federal Treasurer Wayne Swan, earlier maintained that the new tax will spur more mining activities and deliver on its pledged benefits.

The federal government's illegal war on drugs is big business for lobbyists who profit on making sure you never have access to marijuana, whether for recreational or medicinal purposes.

A firm and steady opening has set in the Australian stock market today and analysts are closely watching if it would break the barrier resistance of 4320, an indicator that a change in sentiment towards the positive amidst concerns of the economy's correlation to China's economic slowdown may take place.

Bell FX Currency Outlook: The Australian dollar has opened this morning just over 1.0600 after equity markets had a strong run last week and successfully pushed the AUD higher once more.

U.S. stocks closed mostly flat Friday, punctuating the broader market's biggest weekly gain of the year in muted fashion after a soft reading on consumer sentiment. The Dow Jones Industrial Average fell 20.14 points, or 0.15%, to 13232.62. Blue chips snapped a seven-session streak of gains, the Dow's longest winning run in 13 months.