Christine Gaylican

U.S. stocks tumbled Monday, as fresh worries over the progress of Europe's sovereign debt negotiations spurred a sell off that erased Friday's gains.

MORNING REPORT (7am AEDT)US industrial production rose 0.2pct in September, in line with expectations as a gain in manufacturing production offset a drop in utility output. However the August reading was revised lower to show flat output.

Chi-X, the competitor of the Australian Stock Exchange will finally operate on Oct. 31, according to the Australian Securities and Investments Commission (ASIC) on Monday.

The AUD has opened this morning above 1.0300 after another positive day on Friday on equity markets both in Europe and the United States, on the belief a recapitalization plan for European banks will be announced next weekend.

The Australian sharemarket is gaining for the sixth time in seven sessions, with the All Ordinaries index (XAO) up 0.6 pct or 27.4 pts to 4293.8. Today's improvement can be partly attributed to the impressive gains out of European markets overnight, thanks to progress being made on a viable debt solution.

Bell FX Currency Outlook: The Australian dollar has rallied strongly overnight as investors once again appear willing to take on more risk following positive news out of Europe.

Minutes from the last US Federal Reserve meeting highlighted that Fed officials discussed a fresh round of bond purchases among other tools to stimulate activity. However officials seemed to be holding back from a third round of QE. The minutes reiterated that the Fed had become a lot more concerned about the economic outlook. Commenting that ´´the risks to the growth outlook...were significant and tilted to the downside´´ and that the recovery is ´´more vulnerable to negative shocks´

U.S. blue-chip stocks drove higher Wednesday, pushing the Dow Jones Industrial Average into positive territory for 2011 as investors grew optimistic about plans to recapitalize euro-zone banks. The Dow Jones Industrial Average gained 192 points, or 1.7%, to 11609 in afternoon trading, while the Standard & Poor's 500-stock index climbed 22 points, or 1.9%, to 1218 and the Nasdaq Composite advanced 41 points, or 1.6%, to 2624.

Cementing its commitment in developing an open pit mine in South Australia, BHP Billiton has announced on Wednesday that the company's board has earmarked US$1.2 billion in pre-commitment capital for the first phase

Australian consumers are becoming more optimistic on the general outcome of the economy, but the most important aspect of spending is still something that they are holding back.

Australia's business and other industry groups are now on the quandary as to the passage of the carbon tax legislation in Congress now waiting for the final stamp of approval in the Senate.

Bell FX Currency Outlook The AUD has had a strong rally overnight, trading through parity on renewed investor confidence and demand for higher yielding currencies such as the AUD.

U.S. stocks rose sharply as investors cheered a pledge from France and Germany to resolve the euro zone's banking and sovereign-debt troubles. The Dow Jones Industrial Average rose 278 points, or 2.5%, to 11381. All 30 Dow components rose, with bank stocks leading the charge higher. Bank of America climbed 4.7% and J.P. Morgan Chase advanced 4.3%. The gains came after the blue chip index managed a 190-point rally last week.

MORNING REPORT (7am AEDT)There were solid data readings from major European nations on Monday. Industrial output rose by 0.5pct in France in August with Italian output up 4.3pct - both results well ahead of market expectations. And German exports rose by 3.5pct in August to record highs.

AFTERNOON REPORT (4.30pm AEDT)The local share market posted its fourth win in a row today, kick-starting the trading week on a positive note. Investor sentiment remained buoyant after German and French leaders agreed to do all that is necessary to secure the recapitalisation of European banks. Share markets around the Asian region were generally positive, despite ratings agency Fitch cutting the credit ratings of Italy and Spain. The All Ordinaries Index (XAO) gained 37.3pts or 0.9pct to 42...

The Australian sharemarket is surprisingly holding up very well despite a fall in U.S shares on Friday. The All Ordinaries index (XAO) is up 1.1 pct or 46.4 pts to 4271.4, adding to the 3.8 pct gains recorded last week.

Bell FX Currency Outlook A mixed bag of news and data out of the US and Europe over the weekend has seen the volatility in the AUD continue.

U.S. stocks finished lower Friday and the Dow Jones Industrial Average snapped a three day winning streak, as financial stocks fell sharply and Europe's sovereign-debt problems overshadowed a stronger U.S. employment reading.

MORNING REPORT (7am AEDT)US non-farm payrolls rose by 103,000 in September, above forecasts for a gain of around 60,000. And revisions led to employment numbers being lifted by 99,000 positions over July and August. The unemployment rate was unchanged at 9.1pct.

The share market rally continued today, with local stocks gaining for the third session in a row. Investor optimism was boosted by strong gains in the US and Europe overnight after the European Central Bank announced new measures to provide cash strapped banks with liquidity.

Bell FX Currency Outlook The Australian dollar has opened firmer this morning, after improved investor risk appetite and gains across global equity markets boosted the AUD during the offshore session.

Australian shares leapt the most in almost three years as investor sentiment improved on renewed optimism a solution is near at hand for the Eurozone debt crisis. The local market opened more than one per cent stronger after Wall Street surged for its second straight day, then eased slightly after midday but soared in the last hour of trading. By the close, the benchmark S&P/ASX200 index had reached its highest level since September 21, rising 143.4 points, or 3.65 per cent to 4,069.9 and the br...

MORNING REPORT (7am AEDT)The US ISM services index eased slightly from 53.3 to 53.0 in September but remained over the 50 line indicating expansion of the services sector. New orders rose from 52.8 to 56.5. The ADP employment index showed that private sector jobs rose by 91,000 in September, above forecasts for a 75,000 gain. But planned job layoffs stood at 115,730 in September - a 2-year high.

The services sector stayed in positive territory in September with the latest seasonally adjusted Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI®) down a slight 1.8 points to 50.3 indicating activity continued to expand in the month.

The Australian Dollar is trading just above USD0.9500 following another volatile night in all financial markets, with the highlight being Fed Reserve Chairman Ben Bernanke's address (testimony) to the Joint Economic Committee.

Based on the positive close to the Wall Street session we are currently calling the local market to unwind approximately 40 points or 1% higher at 3912. Gains for our market should be relatively broad based with the US financials, materials, industrials and energy sectors all posting advances of between 2.7% and 3.8%

MORNING REPORT (7am AEDT)US Federal Reserve Chairman Ben Bernanke has pledged to take further steps to support an economy that was ´´close to faltering´´. Bernanke was providing testimony to the Joint Economic Committee.

U.S. stocks staged a fierce comeback in the final minutes of trading on a report that European Union finance ministers are examining ways of co-ordinating recapitalizations of financial institutions. The Dow Jones Industrial Average was recently up 22 points, or 0.2%, at 10678, after earlier falling as much as 251 points.

The Australian share market closed 0.6 per cent lower, with investors starting to hope that the central bank would cut interest rates for the first time in a year next month. The local bourse opened almost one per cent down on a weak lead from Wall Street overnight. By the close on Tuesday both major local indices had made back some of their early losses, with the benchmark S&P/ASX200 index down 24.9 points, or 0.64 per cent, at 3,872.1 and the broader All Ordinaries index dropped 25.1 points, o...