Jamelle Agbuis

The Australian sharemarket is relatively flat at lunch today after not receiving a lead from U.S markets overnight due to the Martin Luther King public holiday.

The Australian sharemarket wiped out yesterday´s pullback with the All Ordinaries index (XAO) gaining 0.8pct or 39pts to 4911.60.

A lack of influential data released and the US markets closed for Martin Luther King Day meant that the AUD was mainly influenced by Europe during last night's offshore session.

European stocks ended relatively flat Monday as shares held tight ranges as finance ministers prepared for a meeting to discuss the sovereign-debt crisis.

The German finance minister Wolfgang Schaeuble has said that there is no immediate need to increase the size of the euro-zone rescue fund.

Australia’s inflation remains above the central bank’s target 3% for the 4th consecutive month. Prices increased 0.2% from the previous month according to the Melbourne Institute.

The Australian Dollar has opened this morning in the low 0.9900’ s after touching the mid 0.9800’s on Friday’s night trade after the Chinese central bank raised the loan reserve requirement by another 50 bps to 19%, the fourth rise in the last 2 months in a further attempt to cool inflation and the strong property market in the major cities.

The Australian Dollar opens this morning buying 0.9894 US Dollars. The Queensland floods still remain the focus for investors as the cost of the dictator start to weigh in. Insured losses may cost as much as $6 billion for insurers worldwide according to Munich Re, the world’s largest reinsurer.

U.S. stocks reached their highest closing levels in two and a half years Friday, driven by a rally in the financial sector following stronger-than-expected earnings from J.P. Morgan Chase.

The US consumer price index rose 0.5pct in December, ahead of forecasts centred on a rise of 0.4pct. The core rate (excludes food and energy) rose 0.1pct. Retail sales rose 0.6pct in December, below forecasts tipping a rise of 0.8pct.

he AUD rallied to a fresh post-float high overnight of USD0.9937. It now seems to be a case of when, rather than if, the AUD will break parity. Some in the market are predicting the AUD will break through USD1.0000 before the end of the week.

The benchmark S&P/ASX200 index was up 1.7 points, or 0.04 per cent, at 4,619.9 points, while the broader All Ordinaries index was 4.8 points higher, or 0.10 per cent, at 4691.1 points.

The local share market ended relatively flat today, despite strong gains in early trade. The All Ordinaries Index (XAO) closed up 4.8pts or 0.1pct to 4691.1 while the S&P/ASX 200 Index (XJO) firmed by 1.7pts or 0.04pct to 4619.9.

Local stocks eased from five month highs today, due to a flat lead from Wall Street and selling in the Asian region.

The Australian share market closed lower after little direction from Wall Street where trading was thin due to a public holiday.

The Australian market has finished off the week around 0.75pct weaker after the ASX 200 (XJO) index pulled back by 0.7pct or 31.7pts today.

Australian stocks are marginally lower at lunchtime in the East, following a negative offshore lead and lack of market moving economic data. The All Ordinaries Index (XAO) is lower by 7.2pts or 0.2pct to 4667.5.

U.S. stocks slipped Wednesday, with Microsoft, Bank of America and J.P. Morgan Chase leading the decline as investors worried about the Federal Reserve's Tuesday suggestion that the economy may need additional stimulative measures. The Dow Jones Industrial Average dropped 21.72, or 0.20%, to 10739.31, breaking a five session winning streak and marking its biggest one day drop since Sept. 7.

The AUD traded solidly throughout Asia yesterday consolidating stoically above 0.9550 for most of the day.

This week we start the run up to the national accounts for the March quarter in Australia to be released next week which are likely to show negative growth in the March quarter, thanks to the impact of flooding in Queensland and Victoria in January and February.

Now this is a more significant outcome from the monthly ANZ jobs ads series.

Australian farmers remain highly confident about the outlook as they approach the winter cropping season (mostly for wheat, the most important crop of all).