POLITICS & POLICY

Bell FX Currency Outlook: The Australian dollar has recovered ground trading back above USD1.0500 this morning as global share markets continue to rally.

Stocks rose, as the S&P 500 topped 1400 for the first time in nearly four years, after firm readings on the jobs market and manufacturing activity. The Dow Jones Industrial Average rose 36 points, or 0.3%, to 13220, with less than an hour before Thursday's closing bell. The Dow industrials are on course for a seventh consecutive gain, the longest streak since an eight-session run ended in February.

The Australian sharemarket lost ground today for the second time this week, with the All Ordinaries Index (XAO) easing 0.2 pct or 8.7 pts to 4366.9. This follows on from two consecutive sessions of gains with the Aussie market rising by 2 pct on Tuesday and Wednesday combined.

Yesterday the Australian share market followed global markets higher, closing at a seven month high. So far today the market has been hit by falls in mining and energy stocks, the All Ordinaries Index (XAO) off 0.27 pct or 11 points to 4363.9. Today is options expiry for ASX listed companies so the volumes this morning and opening prices were heavily impacted by this once a month event.

Spurred by China's renewed growing appetite for iron ore plus gaining prices in the Asian market, Ukrainian iron ore miner Ferrexpo Plc has projected to increase its output generation of iron ore to 12 metric tonnes a year effective 2013.

Brunei has renewed a supply contract agreement with a Japanese consortium this week to deliver some 3.4 million metric tonnes annually of liquefied natural gas (LNG) for 10 years, effective early 2013.

The Atomic Energy Licensing Board (AELB) of Malaysia is poised to invite international observers to come over Malaysia to help the board come up with the most appropriate project to monitor the supposed radiation emissions of the highly debated rare earths processing plant of Lynas Corp. in Gebeng, Kuantan, Malaysia.

Australian bankers anticipate no major problem to be spawned by the Senate inquiry on the sector, expressing even full cooperation when required by the Parliament.

Opposition Leader Tony Abbott has expressed his support on the planned legal challenges aired by mining billionaire Clive Palmer against the upcoming carbon pricing scheme that is set to take effect July this year.

Fair Work Australia (FWA) has completed its inquiry on the alleged violations committed by former top-ranking officials of the Health Services Union (HSU) in Victoria but wrongdoings seen so far fell short of leading into a likely criminal case.

Queensland mining magnate Clive Palmer said that he would launch a legal challenge against the carbon tax before the Australian High Court. The basis of his planned challenge is a legal advice that the tax, slated to take effect July 1, is not constitutional.

Cabinet Minister Stephen Conroy has defended the choice of outgoing Australian Stock Exchange Chairman David Gonski as new head of the Australian Future Fund. He made the statement in response to the push by other Australian Labor Party members for Peter Costello to head the $77-billion fund.

Bell FX Currency Outlook: The Australian dollar extended its recent decline again overnight as the USD strength story continued.

Australian shares and currency markets are seen taking a step back on Thursday after striking gains yesterday. The continuing strength of the USD will drag on the AUD and commodity-related stocks. However, listed firms with big dollar exposures are likely to gain from this USD-AUD trend.

MORNING REPORT (7am AEDT - Due to the change in daylight saving hours in the US - Wall street now closes at 7am AEDT)In the Euro-zone, the consumer price index was unchanged at a 2.7pct annual rate in February, as expected. In the US, the current account deficit widened by $16.5 billion to US$124.1bn in the December quarter, above expectations near $114.2bn and equivalent to 3.2pct of GDP. In the UK, claimant count unemployment rose by another 7,200 in February. The claimant count rate of u...

U.S. stocks traded roughly flat on the day as the Dow industrials struggled to post a sixth straight gain, one day after the Federal Reserve said most of the biggest U.S. banks passed the latest round of stress tests. The Dow Jones Industrial Average edged up three points, or less than 0.1%, to 13181, in Wednesday afternoon trading.

The Australian sharemarket recorded its best daily improvement in three weeks yesterday and gained almost as impressively today. The All Ordinaries Index (XAO) rose 0.9 pct or 39.1 pts to 4375.6 and is close to hitting its highest level in seven months.

The United States, the European Union and Japan have formally accused China of violating international trade rules when it restricted the shipments of rare earth elements that global industries use in manufacturing high-tech and other products.

Members of the Australian Labor Party have raised concerns that the country's super rich could be circumventing tax regulations through federal laws governing family trust funds.

Treasurer Wayne Swan said on Wednesday that Australian Stock Exchange (ASX) Chairman David Gonski on Wednesday will head the $77-billion Australian Future Fund. He will also run the Nation-building funds that will invest in infrastructure projects.

The Anti-Nuclear Alliance of Western Australia (ANAWA), a nongovernment orgnaization, has alleged Australian rare earths miner Lynas Corp. will not stop to pause and follow the suspension order imposed by the Environmental Protection Authority (EPA) from importing its rare earth concentrate into Malaysia.

Disregarding post-Fukushima shocks, China is determined to include nuclear power in its energy generation mix and has been busy eyeing to acquire uranium mines overseas to support this plan.

The battle for accessibility for rare earths supply got nastier on Tuesday in what could be a show of force majeure when three economic powers - the U.S., the European Union (EU) and Japan - lodged a complaint before the World Trade Organization (WTO) against the world's stronghold of rare earths, China.

MORNING REPORT (7am AEDT - Due to the change in daylight saving hours in the US - Wall street now closes at 7am AEDT)The German ZEW investor survey soared in March jumping by 17.1 points to 22.3 - the highest since June 2010.US retail sales lifted by 1.1pct in February, slightly above expectations. The January result was revised up to show a lift of +0.6pct (previously shown as +0.4pct). Excluding autos, sales rose by 0.9pct in February.

Bell FX Currency Outlook: The Australian Dollar is slightly weaker following the release of better than expected American retail sales, a positive announcement from JP Morgan and comments from the US Federal Reserve about the US economy.

Positive leads from the international markets are anticipated to redound to Australia's equity and dollar markets on Wednesday, thanks to the improving U.S. economy and the confidence generated in Germany's better economic trends.

U.S. STOCK MARKETSU.S. stocks rose in response to encouraging news about domestic retail sales and small-business optimism, putting key benchmarks above milestones they have been flirting with for weeks.

The Australian sharemarket more than made up for yesterday's disappointing start to the week, with the All Ordinaries up 1.1 pct or 48.3 pts to 4,336.5. This is the best daily performance from local shares in around three weeks.

Sex abuse and assault victims who went to ACC (Accident Compensation Corporation) for help were horrified upon learning that ACC Minister Judith Collins has demanded an urgent report into allegations that strictly private details of thousands of ACC claimants somehow wound up in the hands of an unauthorised recipient.