The S&P/ASX 200 closed 50 points up.

The Telecommunications sector was buoyed by Telstra (+$0.11). The Industrials sector saw Spotless Group (+$0.23), Asciano Group (+$0.07) and Toll Holdings (+$0.30) rise, while Macquarie Airports (-$0.08) fell.

In the Materials sector, BHP Billiton (+$0.34), Rio Tinto (+$2.19), Orica (+$0.70) and Fortescue Metals (+$0.14) rose. The Consumer Staples sector benefited from gains in Woolworths (+$0.09), Wesfarmers (+$0.82) and Goodman Fielder (+$0.04) and the Financials sector saw gains in Macquarie Group (+$1.95), Commonwealth Bank (+$0.42), QBE Insurance Group (+$0.43) and Suncorp-Metway (+$0.26).

On Friday shares hit their highest level this year as global equities and commodities rallied on signs the world economy was on the mend.

The S&P/ASX 200 closed up 25.7 points, or 0.6 per cent, to 4089.8, for a weekly gain of 2.2 per cent.

The All Ordinaries finished higher by 24.7 points to 4097.3. It was up 2.6 per cent for the week.

The benchmark index rose for eight of the past nine sessions, chalking up gains of 9.4 per cent and putting the index in positive territory for the year as trading volumes picked up.

The S&P/ASX 200 has risen 30 per cent since the March 6 low, but is still 40.3 per cent below its November 2007 peak of 6851.5.

A new small business calendar is available on the tax office web site for download.  The Calender is designed to assist small businesses meet their lodgement requirements.

http://www.ato.gov.au/businesses/content.asp?doc=/content/00148826.htm.

Following release of SMSFR 2009/3 it is noted that a breach of the superannuation rules may not arise until a loan agreement between related parties is actually entered into – this is significant in relation to unpaid trust distributions – caution is required before entering into any such written arrangements where money is owed to a super fund from a related party for what ever reasons.

In addition to the above it is noted that the transitional provisions provided for “geared trusts” or other related party transactions prior to 11 August 1999 come to an end.  Reinvestment into such arrangements may arise if appropriate actions are not taken.  Refer to SMSFR 2009/4.

Caution is advised to advisers in relation to binding death nominations - SMSFD 2008/3 provides direction identifying that a binding death nomination will not be binding in the event the recipient of the nomination can not be a beneficiary of the fund – generally the nomination should be the members dependants or the members legal personal representative.

The Australian market opened higher and after an early dip, regained its initial momentum by late morning. The All Ordinaries finished Wednesday 21 points higher.

The S&P/ASX 200 closed 18 points higher. The Industrials sector saw Macquarie Infrastructure (+$0.18), Leighton Holdings (+$1.87) and Transurban (+$0.21) rise. The Materials sector was buoyed by BHP Billiton (+$0.71), Rio Tinto (+$0.89) and OZ Minerals (+$0.07). The Telecoms sector rose on the back of Telstra (+$0.03). The Consumer Discretionary sector benefited from gains in David Jones ($0.19) and JB Hi-Fi ($0.61). In the Healthcare sector, Sonic Healthcare (-$0.37) was sold down while in the Financials sector, Westpac (-$0.49) and Commonwealth Bank (-$0.65) declined.

BHP Billiton reported solid June quarter 2009 production. Production increased for 12 major commodities, including coking and thermal coal, petroleum, and copper. Iron ore fell 10% YoY and 4% QoQ. National Australia Bank (in trading halt) announced a fully underwritten institutional placement to raise $2B at a minimum price of $21.20, as well as a $750M retail SPP. The raising will boost the proforma Tier 1 ratio from around 8.2% to 8.8% as at 30 June 2009. Unaudited 3Q09 cash earnings was $0.9B, reflecting a solid performance. Woolworths (-$0.12) reported normalised sales growth of 5.4% (9.1% ex-petrol) for 4Q09 and 7.5% (8.5%, ex-petrol) for FY09.

Australian Dollar: The Australian Dollar opens largely unchanged at 0.8160 after the domestic market’s insipid reaction to yesterday’s local inflation data which picked up in the June quarter by 0.5 per cent for a lower annualised reading of 1.5 per cent. With the CPI rate beneath the Reserve Bank’s target range of 2-3 per cent, the door remains open for another interest rate cut should the need arise. Following the release, which was in line with market expectations, the Aussie rallied about 20 points to an intraday high of 0.8165 before drifting lower for most of the remaining local session. Offshore, the unit briefly traded at US82 cents but the rally was short-lived as risk appetite waned. There is no local economic data scheduled for release on Thursday.

We expect a range today in the AUD/USD rate of 0.8080 to 0.8220

Data released by the ABS on Friday, 17/07/2009 showed Australia’s Import Price Index decreased by 6.4% during the June 2009 quarter. Over the year to June 2009 the Import Price Index increased by 5.9%.

Data was also released in regards to the Export Price Index with a decrease of 20.6% being incurred for the June 2009 quarter. In the year to June 2009 a decrease of 0.2% was seen in the Export Price Index.

• European stocks advanced, extending the Dow Jones Stoxx 600 Index’s biggest weekly rally since November, as Sandvik announced better-than-forecast earnings and US housing starts increased.
• US stocks closed flat on Friday as strong earnings from IBM offset disappointing results from General Electric. Market breadth was negative.
• The analyst known as Dr Doom, who predicted the global financial meltdown has indicated the worst is now over.
• The Australian market opened in the black, but soon gave back its early gains and struggled for direction for the rest of Friday. The All Ordinaries finished 5 points higher. A close above 4000 was positive though.

• Data released by the ABS Friday showed the unemployment rate for June 2009 had risen to 5.8% in seasonally adjusted terms. This was caused by an estimated increase in unemployed persons of 22000.
• The ABS advised on Monday that housing finance for owner occupied dwellings increased by 2.3% during the month of May 2009. Commercial Finance commitments also increased during May by 4.0%.
• Unemployment figures for the month of June 2009 will be released by the ABS today.

• Market was very positive yesterday up 3.5% on the back of resource stocks and financials. Bank yields are still attractive when franking is attached.
• Goldman Sachs 2nd quarter profit of US$3.4b gives financial sector much needed confidence.
• We think the reporting period numbers coming are built into current prices so any upgrades will send shares up

• Be aware that the Pension Bonus Scheme ends in September.
• Family Tax Benefits, from 1 July 2009, can no longer be claimed through tax office - regardless of year - and must be claimed through Family Assistance Office.
• Dates - July 21 Quarterly PAYG; Head Companies of Consolidated Groups monthly activity statement - July 28 Superannaution 4th quarter contributions.
• The ATO has issued determination that the luxury car depreciation limit is $57,180.

• Flat markets last night gave no lead for our market today. Commodities and oil took a hit so RIO, BHP and Woodside are worth buying on short term weakness.
• US Market off 2% last night due to concerns over the economy and company profits. The Australian reporting season over the next 2 months will be make or break.
• Expectations of bad results are already factored in so any good news will see the market rally. Within the next 6 months the market has the potential of rallying between 10-20%