The Australian Markets Show Little Surprise Following The Global Trends

The combination of worldwide recovery of investor confidence and increase in base metals helped the Australian markets to recover from yesterday?s losses. The Aussie reached fresh highs of .8641 before easing after the labor market release. The currency appears firmly established above the 86 cents level.


Inflation under control - Costello - The Federal Treasurer Peter Costello said that the inflation remains constrained and consistent with RBA?s targets, despite the tight labor market. The recent labor force figures suggested that the employment growth has consolidated. Costello commented that the figures lock in growth. A consumer survey released today showed that the Australians expect the inflation to fall by the end of the year, thinking that prices will generally stay the same as wages did not grow. Source: Herald Sun,21985,22061560-5012062,00.html
BHP bets on a change in WA policy - The mining giant BHP Billiton resumed work on a uranium deposit at Yeelirrie, expecting that the Western Australia?s anti-uranium mining policy will be thrown out as the premier Alan Carpenter departs from his post. The company is spending substantial sums on assessing Yeelirrie, as it is now believed to be the largest calcrete-type deposit of uranium oxide. Apart from the richness of the deposit, the sustained high uranium prices, which is now trading at $135 a pound, are driving the investment into the Yeelirrie. Source: The Australian,20867,22058830-5005200,00.html

Alcoa invests $40m to assure gas supplies - Alcoa of Australia is reported to have invested $40 million into the ARC Energy?s Canning Basin exploration. The company, which is named one of the key campaigners to secure government?s fixing of cheap gas prices, is also trying to persuade the officials to force existing gas producers not to export the fuel. Alcoa claims that it cannot find sufficient supplies to meet future needs. According to the agreement, Alcoa should secure up to 500 petajoules of gas for up to 15 years, assuring sustainability of its Western Australia operations, now delivering 37% of world?s traded aluminum.,20867,22058834-5005200,00.html

The Aussie touched fresh highs today at .8641 on strong metals and ASX performance before easing a little. The weaker than expected employment change that printed only 2.5K vs. 15 K forecast sent the AUDUSD pair down 25 pips, from which it quickly recovered. The Aussie remains firm and does firmly remains above 86 cents benchmark.

[B][U]Stock Market[/U][/B]
As the Fed?s officials calmed the markets and Dow rebounded 0.56%, the ASX followed the lead and showed strong gains right after the open. Strong metals, such as copper and aluminum have helped the miners gain. The mining giant BHP was the leader of today?s ASX move with a 2.4% gain. The resource leader Alumina Limited gained 5.1%. Telecommunications company Telstra Corporation gained 1.5%, closing the list of the top three market movers. The index overall gained 38.3 points, closing at 6363.4.

[B][U]Bond Market

[/U][/B]Today, the yield followed the global lead again, gaining about 5 bps right after the open. The labor market release appeared to affect the yield, easing it a little. The bond yield ended at 6.206%, gaining 4.4 basis points.