Christine Gaylican

From Morrison Securities Pty. Ltd. U.S. stocks slumped as a surge in Italian bond yields put the spotlight back on euro-zone sovereign-debt issues. Leading the declines were financial and materials stocks. J.P. Morgan Chase fell 5.9% and Bank of America declined 4.4%. Hewlett-Packard was also weak, shedding 5.4%, while Alcoa was off 5.2%.

The various and extensive use of permanent magnets in electronic gadgets, radars, hybrid cars, energy efficient solar panels and wind turbines will continuously push the demand and price for rare earths in 2012.

From Bell FX Currency Outlook: The AUD has been steady since yesterday morning and is trading at USD 1.0375 as European politics dominated headlines and focus.

From Morrison Securities Pty. LtdU.S. stocks jumped in afternoon trading after reports that Italian Prime Minister Silvio Berlusconi plans to resign, seen as a breakthrough in the country's political impasse. Berlusconi was planning to resign after the country's 2012 budget vote is approved, according to several media reports. Few details were immediately available, but traders viewed the development as a positive one for stocks, which have been wracked by soaring Italian bond yields a...

From: Craig James, Commsec Chief EconomistMORNING REPORT (8am AEDT - US close) -- US ICSC chain store sales rose by 2.7pct in the week to November 5 compared with a year ago. ICSC research expects comparable store sales to rise 3.5-4pct in November. The NFIB Small Business Optimism Index rose 1.3pts to 90.2 in October - improving for the second straight month.

Bell FX Currency Outlook:The AUD has traded in a wide range in the last 24 hours as it continues to take direction, like just about all financial markets, from developments in Europe.

From Morrison Securities Pty. LtdU.S. stocks rose Monday, helped by late-session reports that detailed some of the options for Europe's bailout fund. The Dow Jones Industrial Average finished with a gain of 85.15 points, or 0.71%, to 12068.39, after falling by more than 100 points midsession. The Standard & Poor's 500-stock index added 7.89 points, or 0.63%, to 1261.12. The modest gains were enough to move the broad market measure back into the black for 2011, now up 0.28% year to date...

By Craig James, Commsec Chief EconomistMORNING REPORT (US close - 8am AEDT)Euro zone retail sales fell by 0.7pct in September - the first fall in four months and far weaker than forecasts centred on a 0.1pct decline. But August sales were revised up to +0.1pct from a decline of 0.3pct. And in the UK, the Halifax home price index lifted by 1.2pct in October. In the three months to October, prices were down 1.8pct on a year ago.

The destructive floods in Bangkok and Thailand's northern provinces have disrupted global supply chains as major production hubs for electronic supplies and automotive parts are now submerged.

Attempts to cement the state-government's local dominance exporting the rare elements mostly used in today's electronic gadgets, seemed to backfire as local industry members have dumped its inventory in the market causing prices to skid its early highs of RMB 300,000 per ton in a matter of weeks.

Job advertisements in both print and the internet across Australia continued its decline in October, easing 0.7 percent month-on-month and 1.8 percent, y-o-y, according to the latest ANZ survey.

Bell FX Currency Outlook: The AUD has opened just above 1.0410 as the financial world follows the developments in Europe. The Greek Prime Minister George Papandreou agreed to step down as leader to form coalition government while the G-20 summit concluded without agreement to use IMF SDR funding to fund the EFSF.

Gold advance to a fresh monthly high of $1768/oz as market participants diversified away from the U.S. dollar, and the bullion may continue to retrace the sharp selloff from back in September as the Federal Reserve casts a weakened outlook for the world's largest economy.

U.S. stocks capped their first weekly loss since September with a drop on Friday, as Europe's sovereign-debt problems overshadowed a small gain in U.S. employment. The Dow Jones Industrial Average shed 61.23 points, or 0.51%, to 11983.24, and snapped a streak of five weekly gains. The Standard & Poor's 500-stock index shed 7.92 points, or 0.63%, to 1253.23, ending its own weekly winning streak at four.

MORNING REPORT (7am AEDT)US non-farm payrolls (employment) rose by 80,000 in October, short of forecasts for a gain of 95,000 jobs. But there were sharp upward revisions to August and September data, adding 102,000 jobs. The jobless rate fell from 9.1pct to 9.0pct and average weekly hours were unchanged at 34.3 hours.

It will take 30 years and US$14 billion to fully do away with the contaminated radioactive materials from the Fukushima nuclear plant, according Japan's environment ministry.

As floods continue to wreck havoc in Thailand, the death toll has now risen to 356 and more than 2 million had been affected within the 147 districts and 26 provinces still submerged by the worst natural disaster in a century in this developing Southeast Asian country.

The historic launch of alternative trading operator Chi-X Australia has continued its positive turnout of trades now on its third day, according to company's chief operating officer Peter Fowler.

The latest seasonally adjusted Australian Industry Group - PwC Australian Performance of Manufacturing Index (Australian PMI®) contracted in October, albeit at a slower rate than recent months, rising 5.1 points to 47.4. The decline was particularly pronounced across the clothing and footwear sub-sector and sub-sectors linked to the construction industry.

The Reserve Bank of Australia has imposed the much needed cash rate cut of 25 basis points to 4.5 percent that will help improve the Australian economy in the coming months.

The confidence of small businesses in Australia is yet to be fired up, according to the results of the latest survey done by the National Australia Bank.

Bell FX Currency Outlook: The Australian dollar has surged more than two cents this morning, currently trading around USD1.0700 after hitting a high of USD1.0750 overnight.

U.S. stocks surged and the Dow Jones Industrial Average pushed toward what would be its largest monthly percentage gain in a quarter century, as investors cheered an agreement reached by European leaders on a plan to resolve the euro zone's debt crisis.

MORNING REPORT (7am AEDT)The US economy grew at a 2.5pct annual rate in the September quarter, in line with expectations, and up from the 1.3pct annual rate in the June quarter. Pending home sales fell 4.6pct in September, well below market forecasts. And new US claims for unemployment insurance fell by 2,000 to 402,000 in the latest week. Continued claims fell to fresh 3-year lows.

Bell FX Currency Outlook: The Australian dollar continues to trade in a relatively volatile manner, opening this morning around the USD 1.0400 level.

With a conclusion to the European crisis in sight, it seems there is little in the way of the bulls now.We are calling an open of 4270 (+0.7%) for the Aussie market this morning. Traders will be encouraged by the agreement to recapitalise the banks, news that China is looking to invest in the rescue fund and the positive economic data out of the US. Yesterday's CPI numbers will keep investors optimistic about a rate cut by the RBA next week.

Blue-chip stocks pushed back toward the day's highs as investors grew hopeful that European leaders' commitment to preventing a banking crisis and Chinese purchases of euro-zone debt could help resolve the region's debt woes. The Dow Jones Industrial Average rose 130 points, or 1.1%, to 11837 in recent trading.

MORNING REPORT (7am AEDT)European leaders plan to leverage up the bailout fund (EFSF) ´´several fold´´ to a mooted 1 trillion euros with finance ministers to decide details in November. The EFSF will have the flexibility to deploy two models - risk insurance and special purpose vehicle - simultaneously. Italy has promised to deliver an economic development plan by November 15.

With knee-deep floodwaters enveloping Bangkok, high tides from the sea are pushing the Chao Phraya River's level in the central city to as high as 2.6 metres above mean sea level, above a 2.5-metre concrete floodwall, the chief of the Thail Navy's Hydrographic Department said Wednesday.