Daily FNArena News - Australia

Weak data from the Westpac Leading Index suggests a slowdown is coming for the Australian economy, with weak dwelling approvals suggesting ongoing tough conditions for building materials stocks.

An expected second half pick-up for China and undervaluation have equity strategists suggesting resource sector stocks are beginning to look attractive once more.

While the share price has returned to GFC lows Citi sees limited upside in Alumina given ongoing margin pressures from a surplus in the aluminium market. Citi is not alone.

Australian spending and savings are both increasing. Is this more contradictory output from the analyst/economist world, or can both claims be true?

JP Morgan has initiated coverage on Perseus Mining with an Outperform rating, attracted to production growth and valuation upside.

Goldman Sachs has added Primary Health Care to its Conviction Buy list, seeing good value in the stock at current levels.

Australian retailers continue to do it tough, but economists from Deloitte Access Economics are seeing some rays of sunshine, maybe.

Deutsche Bank notes recent data indicate Cochlear is losing market share and that suggests investors better prepare for a lower share price.

The outlook for retail in Oz, yield plays and risk aversion were all hot topics with local stockbrokers last week.

While an equity raising can likely be avoided JP Morgan sees few shorter-term catalysts for Alumina and so downgrades to an Underweight rating.