\n\tBy Stephen Hogan, Senior Private Client Adviser, Equities\/Derivatives<\/p>\n
\tAustralian Market<\/strong><\/p>\n \tThe Australian market (XJO<\/span>) closed up 56.1 points or 1.09% to 5199.8 today. Our market opened strong this morning with a 30 point move higher followed by a 20 point retracement<\/span> before finishing strongly and closing just off the highs of 5201.7. Once again the Metals and Mining sector had the biggest gains of the day with a 2.33% gain; next best was Materials with a 2.11% gain.<\/p>\n \tBHP<\/span> Billiton<\/span> ((BHP<\/span>)) is set to raise $734 million from a bond issue in Canada worth CAD$750 million, the proceeds to be used to refinance debt.<\/p>\n \tChina's exports rose 14.7% in April from a year ago while imports grew 16.8%, leaving the country with a trade surplus of USD $18.16 billion for the month, the Customs Administration said. That compared with market expectations of a 10.3% rise in exports, a 13.9% increase in imports and a trade surplus of $15.1 billion.<\/p>\n \tFurther on from our comments from this morning's report, Westpac ((WBC)) chief economist Bill Evans is expecting the Reserve Bank to follow up its cash rate cut yesterday with another 25 basis points of easing in June. He adds that he expects rates to bottom out at 2 by the first quarter of 2014.<\/p>\n \tAUD is currently trading at $1.0182, down -$0.0010 against the USD.<\/p>\n \tTop Performers<\/strong><\/p>\n \tAquila<\/span> Resources Limited ((AQA<\/span>)) up $0.295 or 15.09% to $2.25<\/p>\n \tAtlas Iron Limited ((AGO)) up $0.112 or 12.31% to $1.022<\/p>\n \tSeven West Media Limited ((SWM<\/span>)) up $0.20 or 9.57% to $2.29<\/p>\n \tNorthern Star Resources Limited ((NST)) up $0.07 or 9.40% to $0.815<\/p>\n \tMineral Deposits Limited ((MDL<\/span>)) up $0.25 or 8.68% to $3.13<\/p>\n \tBottom Performers<\/strong><\/p>\n \tBoart<\/span> Longyear<\/span> Limited ((BLY<\/span>)) down -$0.08 or -7.92% to $0.93<\/p>\n \tCSL<\/span> Limited ((CSL<\/span>)) down -$3.22 or -5.12% to $59.65<\/p>\n \tMedusa Mining Limited ((MML<\/span>)) down -$0.10 or -3.47% to $2.78<\/p>\n \tSundance Resources Limited ((SDL<\/span>)) down -$0.003 or -2.86% to $0.102<\/p>\n \tAcrux<\/span> Limited ((ACR<\/span>)) down -$0.09 or -2.27% to $3.88<\/p>\n \tOur Comments<\/strong><\/p>\n \tI talked recently in the report and also on Sky Business channels Market Moves with Elizabeth Tilley<\/span> on Monday that if we got an interest rate cut it would be the catalyst for the market to head to a new high. Well today we beat Mondays high by 0.6 points before closing just below 5200. We also saw some interesting numbers out of China today with China's trade growth accelerating in April, beating analyst expectations, a positive sign for the country's fragile economic recovery. Exports surged by 14.7% compared with a year earlier. That is up from 10% in March. Imports also rose by 16.8% up from 14.1%.<\/p>\n \tThis was the catalyst for the likes of AGO to be up 12.64% and RIO up 2.63% at the close.<\/p>\n \tReducing (not selling) bank holdings and defensives seems to be the play now and moving into risk. I would still stick to the high end of the market or stocks that are covered well by the media as these will be the stocks that move. Still not a market for small caps so stay away for now.<\/p>\n \tRe-published with permission. Views expressed are not by association FNArena's<\/span> (see our disclaimer).<\/p>\n \n\t(For a more comprehensive summary of last night’s market action see FNArena’s<\/span><\/a> Overnight Report.)<\/p>\n