The market is down 22. Our futures were up 4 this morning. Our market hit a 57-month high yesterday breaking the recent high of 5163 on the ASX 200. Banks accounted for 43 of yesterday’s 65-point rise in the index. The Dow finished up 21 on soft economic US and European economic data. Volumes continue to be low in the US ahead of the FOMC meeting tonight and the ECB meeting tomorrow night. The Dow was down 84 at worst and up 21 at best.

The eurozone unemployment rate was up 0.1% to 12.1% in March (in line). Unemployment rates across the big four economies are now — Germany 5.4%, France 11.0%, Italy 11.5% and Spain 26.7%. European bond yields shot up. The eurozone’s year-on-year inflation rate was +1.2%, which was below the forecast of +1.6% and the previous reading of +1.7%.

Apple finished up 2.94% on reports that they will be issuing a US$17 billion bond. The largest non-bank bond issue in history.

US consumer confidence was up from 61.9 to 68.1 in April. The Chicago PMI was down from 52.4 to 49.0 in April, the first contraction since 2009. S&P/Case Shiller 20 City house price index was up 1.24% in February taking annual growth to 9.32%.

US 10-year bond yield was flat at 1.67%. The VIX (Volatility Index) was down 1.39%.

Best sectors — telecom. Worst sectors — energy, healthcare, industrials, materials.

Spot iron ore was unchanged at $133.00. Gold was up $8.80 to $1476.20. Oil down $1.49 to $93.01. Metals down – Copper down 1.39%, Nickel down 0.73%, Aluminium down 1.53%, Tin down 2.54%.

  • Kathmandu Holdings (KMD) — Third-quarter sales: Total store sales from January 28 to April 28 were $89.7 million, up 12.5%. Same store sales were up 4.1%. The company reaffirmed the commentary provided at its half-year results. Although it did not provide specific earnings guidance, it said it “should deliver a strong profit outcome for 2013”.  KMD is up 9.04% to 205c.
  • Australia’s manufacturing industry weakened in April. The AIG PMI fell 7.7 points to 36.7 in April.
  • China official PMI April 50.6 (Consensus: 50.7) — Remains weak.
  • Month of April — Telstra (TLS) has hit a five-year high after this months increase of 10.4% to 498c. Last month’s best performers included iiNet (IIN) up 18.65% on talk of a merger with M2 Telecommunications (MTU) and Breville Group (BRG) also finished up 18.31%. This month’s worst performers were St Barbara (SBM) and Sundance Resources (SDL) both down more than 50%.
  • To Cut or Not to Cut — Predictions about an RBA rate cut have reversed in recent weeks as weak economic data have led economists to now believe that the RBA could lower rates for the first time this year. Continued weakness in private sector credit growth has now increased chances for a rate cut next Tuesday. Markets are pricing in a 41% chance of a cut.