Daily FNArena News - Australia

Speculation in July that Australian composite manufacturer Quickstep was a good chance of a big contract with Lockheed Martin has come to fruition.

The RBA has raised by 25 points only, consistent with “gradual” plan.

The RBA today lifted the cash rate from 3.25% to 3.50%.

Rio Tinto has lifted the amount of capital expenditure it plans as the company looks to develop its growth options in coming years and brokers view the move as a positive.

The market is pricing in 2.25% of increases to Australian interest rates by the end of 2010 but Westpac sees such assumptions as too aggressive given the potential for financial distress.

Despite Crane Group’s reduced earnings guidance and cuts to market forecasts of 25-30%, earnings risk remains to the downside, according to Credit Suisse.

Australian inflation has been moderating for months and actually fell in September, but it’s unlikely to be enough to forestall a rate rise.

Sims returned to profits in the September quarter but brokers remain somewhat cautious given market conditions imply December quarter earnings will be lower.

A strong Q1 showing and improving business conditions in Australia have brokers thinking that Flight Centre is ready to fly.

Lihir Gold announced solid production for the September quarter and a better than expected increase in reserves, so brokers remain broadly positive on the stock at current levels.