S&P/ASX 200 Closing Bell - October 25, 2013

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  The benchmark S&P/ASX200 edged up 13.4 points, or 0.2 per cent, to 5386.3, while the broader All Ords rose 12.0 points, or 0.2 per cent, to 5385.7 
• Among the sectors, financials added 0.5 per cent, energy gained 0.8 per cent, while materials ended flat and IT lost 1.5 per cent.  
• For the week, the ASX200 ended 1.2 per cent higher, chalking up its third straight weekly gain. 
• The ASX200 has managed to hang onto its gains, swimming against the regional tide, with most share markets in the red today.

 ASX Tips

S&P/ASX 200 Market Update - October 25, 2013

ASX 200

• The ASX is inching towards the psychological 5400 point barrier.
• Most of the region’s markets are down apart from the ASX 200 as earnings from major companies are disappointing. Following markets are negative except ASX 200:

• ·         Japan (Nikkei): -1%
  ·         Hong Kong: -0.3%
  ·         Shanghai: -0.9%
  ·         Taiwan: -0.4%
  ·         Korea: -0.6%
  ·         ASX200: +0.4%
  ·         Singapore: -0.2%
  ·         New Zealand: +0.4%
  
  
  ASX 200

Australian Dollar went lower after China debt report

Australian currency fell sharply today after a report saying that China wrote off three times more bad loans in the first half of the year. At 12pm AEDT today, the local dollar was trading at 96.33US cents down from 96.53US cents yesterday.  Yesterday, the local currency touched five month high of 97.58 US cents, after the release of September quarter inflation figures.

Earlier today, market experts were saying that if China Manufacturing Index (PMI) from HSBC comes positive then it can give a boost to Australian currency and later today after a positive China PMI (seven month-high) data from HSBC things happened as speculated; the Australian dollar (AUD) rose and traded higher against its U.S. (USD) counterpart. In today's trading, AUD rose 0.38 per cent to 0.9660. Being China as the largest export market of Australia, AUD is affected largely by Chinese market data and market figures.

ASX 200

Australian Market Update - October 24, 2013

• Australian shares are up, led by strong financial and healthcare sectors, with CBA hitting a new record high. Commonwealth Bank of Australia, the nation's second biggest company by market value, hit a record high share price of $75.25 in late morning trade.
• BHP Billiton, the world's biggest miner and Australia's biggest corporation, lost 13 cents to $37.37, after three days of gains and after a shaky morning start, Rio Tinto gained four cents to $63.69.
• Other key facts for Today:
• At 12pm AEDT today, the benchmark S&P/ASX200 index was up 16.8 points, or 0.31 per cent, at 5372.9 points.
• The broader All Ordinaries index was up 16.9 points, or 0.32 per cent, at 5373.7 points.
• The December share price index futures contract was 14 points firmer at 5360 points, with 10,552 contracts traded.
• National turnover was 611.4 million securities worth $1.3 billion 

ASX 200

ASX Market Outlook - October 23, 2013

• Australian dollar took a plunge against US dollar after a report saying that China money market rates are surging and Yen is strengthening on technical. US jobs data and positive quarterly inflation figures also boosted the Australian currency in early trades.
• Due to late sell-off, the S&P/ASX 200 index lost 17 points, or 0.3 per cent, to 5356.1, after hitting 5400 in early stages of the session. Traders are scratching their heads for the reasons behind this sudden sell-off. Some are pointing to the afternoon strengthening in Yen against U.S. dollar while others are saying investors were cautious by a report on Bloomberg , saying that China's biggest banks have tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults.
  
  ASX 200

Australian Inflation Figures are Better than Expected

Australian inflation rose more than expected in September quarter due to a sharp spike in fuel prices and this spike sent the local (Australian) dollar to a 4-1/2 month high level. However, despite the rise in quarterly figures, the annual inflation remained in the bottom half of Reserve Bank of Australia’s (RBA) 2-3 per cent target level.

Where Aussie Stocks are heading to???

Now days, Australian stocks are touching five-year highs and market analysts are saying that Australian indexes are ready and all set to touch new highs in coming weeks. Now, the question arises; where these stocks are heading to??

Today, S&P ASX 200 touched a five-year high level for the third consecutive session and it was trading around 5,370-level in mid morning session. So what is the sentiment that is driving the market so positively? Analysts suggest couple of reasons behind this turn around; they say that China is major trading partner of Australia and recently better economic data from China has boosted not only the Australian markets but also the major Asian markets like India, Hong Kong and Japan. Other reasons they give are; the end of political uncertainty in U.S. coupled with the election of new Australian government. These recent happenings have helped boosted the sentiment in market.

Although some analysts are saying that Australian markets are overvalued and good days are far from over. However, opposite to these views global mining giant BHP Billiton (the second-largest firm listed on ASX) reported strong quarterly-earnings which propelled its stock by 2.5 per cent in morning trade.

As we quoted in one of our previous post that the banking stocks (ANZ, NAB and Westpac) are pushing new highs. These stocks are among the top five largest stocks on the index and are ready to report strong numbers which will drive the market to new highs.

ASX 200