MARKETS

The first week of 2015 appears to dispel previous forecast that it wouldn't be a spectacular year for Australia's iron ore sector after price of the commodity hit a five-year low of $66.84 on Dec 23, 2014.

In US economic data, the ISM services index eased from 59.3 to 56.2, below the forecast of 58.0. Factory orders fell 0.7% in November, a slightly larger decline than the 0.5% expected fall. And the Redbook survey of weekly chain store sales was up 4.3% in the latest week compared with a year ago, down from the 5.4% annual gain in the previous week.

Local shares were hammered today following heavy falls on European and US bourses overnight. Concerns about weak demand have been heightened, after the price of Brent Crude dipped below US$50 a barrel for the first time in five-and-a-half-years. Investors were also spookedovernight amid speculation Greece may exit the Eurozone.The All Ords (XAO) improved slightly from the day's lows to close down 83 points or 1.5 percent to 5,346, while the ASX 200 (XJO) dropped 85 points or 1.5 percent to 5,...

Australian shares have had their worst start in a month with the ASX 200 Index down 1.8 per cent at lunch. The weakness follows concerns about the future of Greece within the euro zone, substantial losses across global markets and a 5 per cent slump in the oil price overnight.

2015 is barely three trading days old and already the two biggest themes that were predicted to affect the markets this year are making headlines - oversupply of commodities and the Eurozone.

In US economic data, the New York ISM index rose from 663.4 to 673.8 in December.

Australian shares rose in the final 20 minutes of trade to end 0.3 per cent firmer in what was a choppy session. The ASX 200 Index was up by as much as 0.6 per cent at one stage today and was down by a little more than 0.1 per cent at its worst. Despite all holidays being behind us for major sharemarkets - volume is likely to remain light over the next fortnight.

Australian shares are improving at lunch despite a softer start. The ASX 200 Index is up by 0.3 per cent after a 0.8 per cent slump on the open. An air of normality is returning to markets this week following a fortnight of patchy trade due to holidays. Volume however is likely to remain quiet with investors still remaining in holiday mode for the first few weeks of a new year.

On the first trading day of 2015, price of iron ore registered a slight increase to $71.26 per tonne on the spot market, up from $66.84 before Christmas. The improvement could be seen as an auspicious start for Australian iron ore miners who suffered a significant dip in income due to price of the key-steelmaking ingredient hitting a five-year low in 2014 because of the low demand in China and glut in supply.

Activity will slowly start to pick up again this week with market participants making their way back to trading after a break. China and Japan return to trade after having been on New Year's related breaks for most of last week. Attention is likely to be on Europe for the next few weeks as investors digest the developments from Greece and what this means for the euro. Comments made by Greek Prime Minister Samaras suggesting the country's euro membership is on edge heading into the January ...

In US economic data, the ISM manufacturing index eased from 58.7 to 55.5 in December, well below the consensus estimate of 57.6. Construction spending fell by 0.3% in November, below forecasts for a 0.3% gain.

The local sharemarket has recovered early losses to finish the first session of the New Year in positive territory. The All Ords (XAO) finished up 26 points or 0.5 percent to 5,415, while the ASX 200 (XJO) improved by 25 points or 0.5 percent to 5,435.

For the first day of trading for 2015 we saw the Australian market opened slightly weaker off 12points before coming back to be only down 5points by 10.30am ESDT.

After he heard that AirAsia Flight QZ8501 was missing less than an hour after the Airbus jet left Surabaya for Singapore, Tony Fernandez, the CEO of the embattled air carrier was in the Indonesian city within the same day.

How would next leader of the oil-rich Kingdom of Saudi Arabia respond to oil prices and the Islamic State problem is now being speculated following the hospitalization of King Abdullah bin Adulaziz on Wednesday.

Most global financial markets were closed on Thursday for the New Years Day holiday.

Australian shares failed to maintain early gains and finished modestly lower this holiday-shortened trading session. Volume was very light; in fact today was the quietest day of 2014 with only $1.3bn worth of shares traded.

Australian shares are flat in what has been a volatile but quiet week for local stocks. The ASX 200 is up just 2pts at lunch, slumped by 1 per cent yesterday and surged by 1.5 per cent on Monday. It has been half as busy as usual so far this week - with investors in holiday mode. Today is likely to be an uneventful session for the Australian market as the ASX will be closing at 14:10pm AEDT (two hours earlier than usual).

Authorities arrested and sent to jail on Tuesday Cho Hyun-Ah, the Korean Air vice president whose rage over being served macadamia nuts in a plastic bag instead of on a plate delayed the plane's departure and arrival.

Global markets are set to finish the year with a bit of downside on the back of resurfacing Greece concerns. Some analysts feel another Greek political debacle will make it harder for ECB President Mario Draghi to pursue his grand plan of sovereign bond purchases given opposition from other northern nations such as Germany. There will be little event risk to look out for across the region today with some key markets like Japan already closed for New Year's related holidays. Perhaps China's...

Australian shares extended their losses this afternoon to shed 1 per cent and wipe out a chunk of yesterday's 1.5 per cent surge.

Australian shares are easing for just the second time in eight trading sessions following yesterday's 2.5 per cent surge. The ASX 200 Index is down by 0.3 per cent on light volume due to the holiday interrupted trading week.

The macadamia nut industry has resigned Korea Air Vice President Heather Cho to thank for because her air rage over being served the nuts in a plastic bag instead of a plate saw a large increase in demand for the controversial nut in South Korea.

With no sign of the missing AirAsia Flight QZ8501 after two days of surveillance, the search was widened on Tuesday in terms of a bigger area and more teams joining.

The main headline from overnight trade was Greece's failure to elect presidential nominee Stavros Dimas in its final attempt. After two failed attempts, yesterday was parliament's last chance to elect him as president before being forced into an early election. Having failed yet again, the country will be headed back to the polls as early as January 25. An election puts all sorts of doubt on the future of the bailout agreement given anti-austerity party Syriza is currently leading the poll...

In US economic data, the Dallas Federal Reserve manufacturing index eased from +10.5 to +4.1 in December.

Airlift rescue operations continue on the burning Norman Atlantic off the island of Corfu.

Australian shares surged despite a substantial fall in market activity (volume). The ASX 200 Index extended earlier gains to finish 1.5 per cent firmer by close; finishing at intraday highs.

Australian shares are kicking off the holiday shortened trading week firmer, with the ASX 200 Index up 0.8 per cent. This is the first session of trade since last Wednesday and historically the next few weeks are usually quiet for local stocks.