Christine Gaylican

ArcelorMittal has decided to pull out from its joint venture with U.S.-based Peabody Energy for Macarthur Coal after issues of management control arises.

Bell FX Currency Outlook: The Australian dollar has opened trading around the USD1.0430 level this morning after another choppy session in the offshore markets.

Uncertainty over how much progress European leaders are making in these debt talks is likely to dominate trading today. The more cyclical stocks are likely to struggle, after financial names led markets lower overnight. Financials leading the falls is symptomatic of disappointment in European talks to avert a crisis. This theme is likely to extend to our local banks. Apart from gold, most metals were weaker, which is likely to see our miners struggle. Oil was a surprise gainer in a risk-off sess...

U.S. stocks pushed lower Tuesday afternoon as hopes for a big solution to Europe's debt crisis waned following the cancellation of a scheduled meeting for European Union finance ministers. The Dow Jones Industrial Average fell 134 points, or 1.1%, to 11779. The losses come after the blue-chip Dow rose more than 400 points over the last three trading days.

MORNING REPORT (7am AEDT)In the US, the Case Shiller home price series for 20 cities was flat in seasonally adjusted terms in August but up 0.2pct in unadjusted terms. Home prices are down 3.8pct on a year ago. The consumer confidence index fell from 46.4 to a 30-month low of 39.8 in October. The Richmond Fed manufacturing index was unchanged at -6 in October.

Thailand's efforts to completely block floodwaters from reaching the capital Bangkok had been unsuccessful as the strong currents broke through barriers at Pin Klao area in Thon Buri that has been keeping the outpouring of the Chao Phraya River.

Bell FX Currency Outlook: The AUD has risen to a six-week high overnight on the back of strong gains in commodities and continued optimism on an impending solution for Europe.

U.S. stocks jumped Monday, pushing the Nasdaq Composite into positive territory for the year and the Standard & Poor's 500-stock index to the cusp of it, though stocks moved off session highs in late trade. The Dow Jones Industrial Average advanced 78 points, or 0.7%, to 11889 in late afternoon action. Caterpillar was leading blue chips, gaining 4.8% after the maker of construction and mining equipment reported third-quarter earnings that beat expectations and raised its outlook for the year....

A reading on the Chinese manufacturing sector lifted sharply in the latest month. HSBC´s China Flash PMI rose from 49.9 to 51.1 in October. Any reading above 50 suggests stronger growth in the manufacturing sector.

Resource-related projects are expected to significantly boost the engineering and commercial construction sectors over the 2011/12 and 2012/13 financial years, according to Australia's leading construction companies.

Thai authorities are now battling in two fronts: the immense flooding and residents resisting the government's strategy to divert the rising waters away from Bangkok.

Bell FX Currency Outlook: The AUD has opened above 1.0300 this morning, as financial markets continued to look for a positive resolution of the European debt crisis, following the weekend's EU emergency summit.

Given the extraordinary volatility the markets had generated for the dollar and risk-based assets alike through the final 24 hours of this past trading week; it may seem unusual to set the benchmark currency's fundamental forecast to neutral. Yet, when we actually look beyond the aggressive, short-term swings in price action; we come to a very different assessment of the dollar's backdrop.

MORNING REPORT (7am AEDT)French President Nicolas Sarkozy has backed down on demands for the European Financial Stability Facility to be able to borrow from the European Central Bank to address the region´s debt crisis. European leaders will meet again on Wednesday evening to finalise a solution to the debt crisis.

European leaders are nearing agreement on a plan that would see the region's banks raise around EUR100 billion in fresh capital, said three people familiar with marathon talks taking place Sunday.

Bell FX Currency Outlook: The AUD has opened around USD1.0230 this morning, despite weaker base metals which were heavily sold overnight.

U.S. StocksU.S. stocks pared an afternoon advance late in a session whose choppy trading was dominated by European sovereign-debt worries. The Dow Jones Industrial Average was up 23 points, or 0.2%, at 11524, while the Standard & Poor's 500-stock index added 3 points, or 0.3%, to 1213.

MORNING REPORT (7am AEDT)US initial jobless claims fell by 6,000 to 403,000 in the past week. The 4-week moving average of claims held at a 6-month low. The Conference Board Leading Index rose by 0.2pct in September.

As European banks struggle to commit as to how much their book values should be stated against the backdrop of deep sovereign bonds restructuring, Australian banks have remained strong and viable, according to a top officer of the Reserve Bank.

Bell FX Currency Outlook:The Australian dollar is a little lower this morning on reports of a disagreement between France and Germany on the details of the European Financial Stability Facility.

U.S. MarketsU.S. stocks dropped into negative territory as investors digested the Federal Reserve's gloomy assessment on the U.S. economy, adding to concerns about Apple's surprise earnings disappointment. The Dow Jones Industrial Average fell 46 points, or 0.4%, to 11530. The Standard & Poor's 500-stock index lost 12 points, or 1%, to 1213, and the Nasdaq Composite shed 44 points, or 1.7%, to 2613.

MORNING REPORT (7am AEDT)US consumer prices rose by 0.3pct in September, underpinned by food and energy prices. But the core rate - excludes food and energy - rose by 0.1pct, to stand 2.0pct higher than a year ago. And housing starts soared by 15pct to a 658,000 annual rate in September, above forecasts for a result near 590,000 and the highest level since April 2010. Building permits were lower by 5pct to 594,000, below consensus estimates.

Optimism towards a better economy in Australia is beginning to set in, according to the latest Westpac-Melbourne Institute Leading Index.

U.S. stocks hit fresh session highs after a report circulated that France and Germany had agreed on a EUR2 trillion plan to combat Europe's sovereign debt crisis. The Dow Jones Industrial Average rose 250 points, or 2.2%, to 11651, after earlier falling as much as 101 points. The Standard & Poor's 500-stock index gained 32 points, or 2.7%, to 1233, led higher by financial and industrial stocks. Each of the index's 10 sectors traded in positive territory.

MORNING REPORT (7am AEDT)US producer prices rose by 0.8pct in September, driven by higher energy prices. Economists had tipped a gain of only 0.2pct. But the core rate - excludes food and energy - rose by 0.2pct, just above the consensus forecast for a 0.1pct rise. And the NAHB/Wells Fargo Housing market index hit a 17-month high in October, lifting from +14 to +18.

AFTERNOON REPORT (4.30pm AEDT)Local stocks managed to erase all of yesterday's gains during Tuesday's session, with fear and caution again at the forefront of investors' minds. Overnight, sentiment wasn't helped by negative commentary from Germany's Finance Minister who warned it was unrealistic to expect a definitive solution to the European debt crisis at this weekend's European Union summit.

Shareholders of Telstra have agreed and voted in favor of the $11 billion deal with the Australian government, allowing Telstra's fixed-line dominance be used by the NBN Company.

MIDDAY REPORT (12pm AEDT)The Australian sharemarket is down 1.6 pct or 71.5 pts to 4266.4, effectively wiping out all of yesterday's impressive gains. Markets tumbled overnight due to concerns that the European debt solution might fall short of expectations.

Australia's central bank has hinted that benchmark cash rates in the country may go down after months of being held at 4.75 percent.