Daily FNArena News - Australia

GUD Holdings beat market expectations with its profit result to kick off what will be an important Australian earnings reporting season.

National Australia Bank’s monthly survey of business conditions showed continued strength in December but there are increasing signs the peak has passed.

Both Wesfarmers and Macarthur Coal have declared force majeure as a result of flooding at their operations but brokers point out the reduced export volumes should support coal prices during contract negotiations.

While Kagara Zinc’s production for the quarter met expectations lower metal prices are impacting on earnings, but this is disguising the company’s prospects according to ABN Amro.

Oxiana’s quarterly production report disappointed most in the market triggering cuts to earnings foreasts but expected strong production growth from 2009 sees a number of brokers keeping the faith.

Today’s CPI data suggest one more rate hike is necessary and only a deteriorating global economy will be able to keep the RBA on hold.

December quarter’s inflation figures in Australia came out high.

The latest reading into the Australian economy, admittedly before the January turmoil, continues to signal a healthy outlook lies ahead.

Citi has joined the Buy recommendations on gold miner Avoca Resources on a day when gold stocks have been slammed.

The December quarter PPI was much lower than expected, but not powerful enough to necessarily sway the RBA from its likely course.