Christine Gaylican

MORNING REPORT (7am AEDT)The US ISM manufacturing index rose from 50.6 to 51.6 in September, well above expectations centred on a result near 50.5. Production, employment and supplier deliveries all rose strongly. Construction spending rose by 1.4pct in August after falling by 1.3pct in July. And US car makers posted double-digit annual gains in sales in September with GM sales up 20pct and Chrysler up 27pct.

Bell FX Currency Outlook The AUD is looking vulnerable, currently holding just above USD0.9500, after reports that Greece will miss its budget deficit targets in 2011 and 2012.

AFTERNOON REPORT (4.30pm AEDT)After a tough September for investors, the local share market has started the trading month of October and the December quarter on a similarly dismal note. Losses from the US and Europe, weaker commodity prices and weakness in the Asian region impacted investor sentiment today. Low volumes caused by a public holiday in NSW, the ACT and South Australia exacerbated the selling while there was no direction from China, with the Shanghai Composite closed all week. T...

MORNING REPORT (7am AEST)US personal income fell by 0.1pct in August but spending rose by 0.2pct. The lift in spending was in line with expectations. Meanwhile the Chicago purchasing managers index soared from 56.5 to 60.4 in September while the consumer sentiment index rose from 57.8 to 59.4.

Manufacturers experienced another tough month in September with the Australian Industry Group - PwC Australian Performance of Manufacturing Index (Australian PMI®) down 1.0 point to 42.3, indicating a further weakening in the sector.

U.S. stocks fell Friday, closing out the market's biggest quarterly drop since the financial crisis with a triple-digit dive in the Dow Jones Industrial Average. The blue-chip Dow shed 240.60 points, or 2.2%, to 10913.38, after a batch of glum overseas economic data weighed on investor sentiment.

The Australian dollar is currently trading around USD0.9660 weighed down by ongoing European debt concerns.

AFTERNOON REPORT (4.30pm AEST)The Australian share market ended what has been another volatile week on a flat note, despite attempting a rally in early trade. The All Ordinaries Index (XAO) added 2.2pts or 0.1pct to 4070.1 while the S&P/ASX 200 Index (XJO) firmed by 0.3pts to 4008.6.

MIDDAY REPORT (12pm AEST)It has been a volatile session of trade so far today, with the Australian sharemarket losing ground after posting gains for the first two hours of trade. The All Ordinaries index (XAO) is down 0.4 pct or 17.4 pts to 4050.5. Almost all sectors are lower with weakness from the financials and miners holding the market back.

The Australian dollar is currently trading around USD0.9770 this morning following some positive news released overnight both in Europe and the US.

U.S. blue-chip stocks finished higher Thursday but the technology sector slid, as stronger U.S. economic data struck a contrast with a leading chip maker's forecast cut. The Dow Jones Industrial Average finished 143.08 points, or 1.3%, higher at 11153.98 in a volatile session that saw the blue-chip index turn negative midsession, after surging more than 200 points in the morning. It jumped again in the final 45 minutes of trading.

New claims for unemployment insurance in the US (jobless claims) fell by 37,000 in the latest week to 391,000. Economists had tipped a result near 420,000 The US economy grew at a 1.3pct annual pace in the June quarter, up from the previous estimate of 1.0pct. US pending home sales fell by 1.2pct in August. And the Kansas City Fed index rose from +3 to +6 in September.

AFTERNOON REPORT (4.30pm AEST)The recent rally on the Australian share market came to an abrupt end today, although the losses weren't overly significant or surprising. US and European markets closed in the red overnight, as investors looked to square their books ahead of the end of the month and end of the September quarter. A lack of concrete and decisive action from European leaders also frustrated investors. The Australian market, which has gained around 4.5pct over the past couple o...

MIDDAY REPORT (12pm AEST)The Australian sharemarket has wiped out yesterday's gains, with concerns that the European leaders remain divided on a potential debt crisis solution. Investors are extremely sensitive to both positive and negative news out of the Eurozone. The Americans have been quick to judge and criticize the Euro leaders, with President Barack Obama saying that governments have been too slow to agree on a resolution.

The Australian dollar has opened weaker this morning currently trading around USD 0.9740, after reversing gains which saw it trade to a high of USD0.9950 during the European session.

All good things have to come to an end and unfortunately the S&P 500 could not make it four out of four successive gains. US equities saw selling right up until the close, with the bears easily winning the session. The NASDAQ was the worst performer, losing 2.2% while the S&P fell 2.1% and the Dow Jones Industrial Average shed 1.6%.

The Australian sharemarket rose almost one per cent in the second day of gains, as markets recovered from last week's massive losses on hopes of a solution to Europe's debt crisis. However, the market investors remained unsure whether a solution to the crisis could be found amid conflicting media reports. The benchmark S&P/ASX200 index had risen 34.9 points, or 0.87 per cent, to close at 4,039.5, while the broader All Ordinaries index rose 34.2 points, or 0.84 per cent, to 4,097.7.

US durable goods orders fell by 0.1pct in August after rising by 4.1pct in July. Economists had expected a flat result. Non-defense orders excluding aircraft rose by 1.1pct. And applications for US mortgages rose by 9.3pct last week as refinancing demand rose in response to lower mortgage rates. The index of refinancing applications rose by 11.2pct while loans to purchase new homes rose by 2.6pct.

(4.30pm AEST)Investor confidence remained strong today, with the local market managing to hold onto and add to yesterday's 3.5pct gain. Markets around the Asian region were generally firmer, after the Greek parliament approved a contentious property tax law which is crucial to its austerity plan and its commitments to secure bail-out funds. The local share market lost a little steam in afternoon trade but closed higher by 0.8pct, with the All Ordinaries Index (XAO) adding 34.2pts to 4097....

MIDDAY REPORT (12pm AEST)The Australian sharemarket is gaining for the second straight day with the ASX 200 index (XJO) up 0.5 pct or 20.5 pts to 4025.1 while the broader All Ordinaries index (XAO) is also 0.5 pct or 22.2 pts higher to 4085.7. Shares improved by 3.5 pct yesterday, breaking three consecutive sessions of losses.

The AUD is trading just above USD 0.9900 today, a little higher than yesterday, as currency markets have managed to stabilise over the last couple of days.

US home prices were unchanged in seasonally adjusted terms in July. The S&P/Case Shiller 20-city home price index was unchanged in the month but up 0.9pct in unadjusted terms to stand 4.1pct lower than a year ago. US consumer confidence rose from 45.2 to 45.4 in September. And the Richmond Fed manufacturing index improved from minus 10 in August to minus 6 in September.

Australia's stock markets are expected to to see further gains at the open of trade as stocks continue their relief rally. Once again, there is very little in the way of local economic news so sentiment is going to continue to be dominated by the big macro forces in play.

U.S. stocks rose Tuesday, even as a sharp afternoon downdraft prompted U.S. stocks to erase more than half of their earlier gains, as investors fretted over a report that highlighted a potential split in the euro zone over the terms of Greece's second bailout. The Dow Jones Industrial Average finished the session up 146.83 points, or 1.3%, at 11190.69, after surging as much as 325 points earlier in the session. The gains came a day after the blue-chip index climbed 272 points.

AFTERNOON REPORT (4.30pm AEST)The Australian share market snapped a three day losing streak today, rallying by 3.5pct as investor sentiment was boosted by hopes European leaders will announce fresh measures to address the sovereign debt crisis. The All Ordinaries Index (XAO) added 135.9pts to 4063.5, after touching an intra-day high of 4049. The S&P/ASX 200 Index (XJO) firmed by 140.7pts or 3.6pct to 4004.6.

Across Asia, regional markets are all sharply higher following the strong rebound rally seen in overnight trade amidst renewed hopes the latest plan European officials are working on will help ease the debt crisis. The Kospi is the best performer, up 4.1% while the Shanghai Composite, Nikkei 225 and Hang Seng are all up between 0.5% and 2.5%.

The latest Australian Industry Group/Deloitte CEO survey released on Tuesday, "Business Regulation," points to the high and rising cost of complying with regulation for Australian businesses.

MIDDAY REPORT (12pm AEST)As expected, the Australian share market is wiping out yesterday's falls with the All Ordinaries index (XAO) up 2.9 pct or 114.9 pts to 4042.5. Keep in mind that despite the improvement, the market locally has still lost ground for five of the past seven sessions.

The AUD has strengthened overnight, opening above USD0.9800, as markets cautiously thought through the possibility the world economy may avoid a global recession.