Good morning traders. Thanks to @ttward, @Ravgnome& the Aftermarket loungers.

Trump SOU address probably the main thing to watch out for later today. As well as the continued fallout from the Hayne Report. NZ markets closed today for Waitangi Day.

ASX Market Report

The Australian share market has had its biggest day in 26 months as investors breathed a sigh of relief the financial services royal commission hadn't recommended harsher penalties for the big banks.

The benchmark S&P/ASX200 index closed up 114.7 points, or 1.95 per cent, to 6,005.9 at 1615 AEDT on Tuesday, while the broader All Ordinaries was up 105.1 points, or 1.76 per cent, at 6,068.1.

The rally was the biggest since November 10, 2016, when the ASX200 closed up 3.34 per cent.

Tuesday's close is also the bourse's highest level in four months, since October 11.

The big banks led the way, with Westpac surging 7.36 per cent, to $26.70; ANZ up 6.5 per cent, to $26.86; CBA up 4.69 per cent, to $73.60; and NAB up 3.91 per cent, to $24.97.

CommSec market analyst James Tao said the market was relieved to know what banking royal commissioner Kenneth Hayne was recommending.

"Even though they were quite harsh and scathing on the deficiencies and culture of the banks and the financial sector as a whole, they didn't come out with anything as to breaking up the banks.

"It definitely has been a solid session, the gains have been across the board."

One exception was mortgage brokers, which had their shares hammered after the government proposed banning trailing commissions and reviewing broker renumeration in response to the commission's report.

Mortgage Choice closed down 25.24 per cent and AFG closed down 29.13 per cent. Mortgage Choice stocks are down nearly 70 per cent from a year ago.

AMP shares were up 22 cents, or 9.95 per cent, to $2.43, but Australia's largest wealth manager has still lost more than half its value since the royal commission highlighted conflicts of interest in its business model.

AMP said a raft of changes have already implemented and it was determined to win back the trust of its clients, shareholders and regulators.

While all eyes were on the financial sector, the reporting season did kick off on Tuesday, with industrial building materials company James Hardie shares jumping 5.62 per cent, to $15.98, after it reported profits had decreased by 10 per cent for the quarter amid a soft housing market.

Global education services provider Navitas shares were down 3 cents, or 0.53 per cent, to $5.60 after reporting its profit after tax was down 14 per cent, to $21.4 million.

Meanwhile the Aussie dollar jumped 0.5 per cent, to 72.61 US cents, following the Reserve Bank of Australia's decision to leave interest rates steady.

ON THE ASX:

* The benchmark S&P/ASX200 index up 114.7 points, or 1.95 per cent, at 6,005.9 points at 1615 AEDT on Tuesday.

* The All Ordinaries was up 105.1 points, or 1.76 per cent, at 6,068.1.

* At 1630 AEDT, the SPI200 futures index was down 13 points, or 0.22 per cent, at 5,926.0.

CURRENCY SNAPSHOT AT 1630 AEDT:

One Australian dollar buys:

* 72.61 US cents, from 72.26 US on Monday

* 79.77 Japanese yen, from 79.41

* 63.51 euro cents, from 63.19

* 55.69 British pence, from 55.43

* 105.25 NZ cents, from 104.95

GOLD:

The spot price of gold in Sydney at 1630 AEDT was $US1314.37 per fine ounce, from $US1312.06 on Monday.

In Asia

Asian stocks extended gains on Tuesday as overnight strength on Wall Street and the Federal Reserve’s cautious turn underpinned appetite for riskier assets, while the dollar held firm on last week’s upbeat U.S. data.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.5 percent and hovered near its four-month high marked on Friday.

Japan’s Nikkei average marked its highest level in seven weeks at one point but finished the day down 0.2 percent.

Australian shares jumped 2 percent, with long-battered financials surging on short-covering after a special government-appointed inquiry excoriated Australia’s financial sector for misconduct but left the structure of the country’s powerful banks in place.

Elsewhere in Asia, trade was light, with markets in greater China, Taiwan, South Korea, Singapore and Indonesia all closed for the Lunar New Year.

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In Europe

European shares hit nine-week highs on Tuesday, as a recovery in banks, gains in oil stocks on stronger crude prices and a solid update from BP helped offset some disappointing updates including from Apple supplier AMS.

The pan-European STOXX 600 index rose 1.3 percent to its highest since Dec. 3, while euro zone stocks added 1.5 percent.

The commodity-heavy FTSE 100 rose 2 percent as a falling pound gave an accounting boost to blue chips with strong revenues outside Britain.

“I feel that markets in general are looking for a reason to move up”, said James Bateman, chief investment officer at Fidelity International.

“We had the period of panic and thinking about the risk of trade wars, and markets are now desperately latching onto any source of optimism they can”, he added.

Euro zone banks, which have been under pressure due to concerns over a slowing economy and dovish central bank stances, recovered after six straight session of losses, rising 1.7 percent.

Top faller on the STOXX 600 was AMS, down 6.9 percent after the sensor specialist and Apple supplier skipped its dividend and said first-quarter revenue would fall amid continued weak smartphone demand.

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In the United States

Technology and consumer discretionary stocks lifted Wall Street on Tuesday, as upbeat results from Estée Lauder and Ralph Lauren fueled earnings optimism, ahead of the highly awaited State of the Union address by President Donald Trump. Leading gains on the S&P 500 was cosmetics maker Estée Lauder Cos Inc which jumped 12.21 percent, followed by luxury fashion group Ralph Lauren Corp’s 8.98 percent rise, after both their quarterly reports exceeded expectations.

Alphabet Inc wrapped up FAANG earnings by posting better-than-expected quarterly revenue and profit. However, worries about sharply higher spending, sent its shares down 0.8 percent.

Google parent’s shares were the only FAANG stock in the red. A 1.4 percent rise in Apple Inc boosted the technology index, while Amazon.com Inc’s rise of 1.2 percent pushed the consumer discretionary sector higher.

“It’s been a pretty good earnings season, whether it’s top-line or bottom-line numbers — there’s still growth. The bar has been lowered and companies are able to step over the hurdle,” said Chad Oviatt, director of investment management for Huntington Private Bank in Columbus, Ohio.

About 71 percent of the S&P 500 companies, that have reported earnings, have topped estimates. While expectations for fourth-quarter earnings growth are 15.8 percent, estimates for the first-quarter are much lower at 0.4 percent, according to IBES data from Refinitiv.

Trump is set to challenge Democrats to approve funding for his long-sought border wall before the Congress at his State of the Union speech due at 09:00 p.m. ET (0200 GMT Wednesday).

At 12:51 p.m. ET the Dow Jones Industrial Average was up 113.48 points, or 0.45 percent, at 25,352.85, the S&P 500 was up 4.58 points, or 0.17 percent, at 2,729.45 and the Nasdaq Composite was up 29.79 points, or 0.41 percent, at 7,377.33.

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Earnings Reports

(Via ComSec)

(Via Earnings Whispers)

Australian News

December's retail spend was worse than predicted, with November's Black Friday and Cyber Monday sales absorbing consumers' cash and leaving less for the traditional Christmas trading period. 
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A $2.06 billion drop in goods and services imports has lifted Australia's trade surplus to its highest in two years, though economists warn this could signal a further decline in business and consumer spending. 
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The Reserve Bank of Australia has left official interest rates on hold at 1.5 per cent as low inflation, stubborn wages growth and a slowing economy weigh on policy makers. The decision came as the central bank cut its annual economic growth forecast to around 3 per cent, from 3.5 per cent, and said downside risks to the economy had increased. 
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What the banking royal commission’s recommendations mean for you. The royal commission’s report recommends sweeping changes. How will they affect your life — and hip pocket? Here are the answers. Read more

The NAB CEO had booked long service leave when the banking royal commission was set to hand down its final report — and he’s been grilled over why he took that decision.Andrew Thorburn cancelled the rest of the two months leave he started over the Christmas period as the fallout over the royal commission continues, but defended the decision in a TV interview this morning. 
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Hayne has different take on NAB's cries of innocence. As NAB boss Andrew Thorburn brushed off the television cameras gathered outside his home on Tuesday to jump into a car and head into work, he had the scathing criticism of commissioner Kenneth Hayne ringing in his ears. 
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AMP has acknowledged the conflict of interest in financial services highlighted by Kenneth Hayne's final royal commission report, but says there are still benefits to its business model. AMP, which has lost more than half its market value since its misconduct was made public by the inquiry, said on Tuesday the royal commission had already been a catalyst for change. 
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IOOF welcomes banks report despite result 
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Zinc prices climbed to seven-month highs overnight, lifted by concerns over shortages due to falling stocks and environmental constraints and delays to new capacity in top producer China. 
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Global News

The aging bull market will turn 10 years old next month, but the rally may still have some legs left. Matt McCall, founder and president of Penn Financial Group, thinks the S&P 500 will wind up with gains of about 25% at some point this year. The index is already up nearly 9% so far in 2019. 
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A bitcoin renaissance could see the digital currency rise by as much as 84 per cent by the end of 2019, according to a panel of experts polled by Finder.com.au. After peaking at US$20,000 ($28,982) in December 2017 off the back of a global cryptocurrency mania, bitcoin lost 71 per cent of its value and spent most of last year hovering around the US$4000 mark. At the time of writing, bitcoin was trading at just under US$3500. 
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A UN trade official has warned a US plan to raise tariffs on Chinese goods next month would have "massive" implications for the global economy. The US plans to increase tariffs on Chinese goods if the two sides fail to make progress on a trade deal by 1 March. 
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Bernie Sanders Wants to Limit Stock Buybacks. Here Are 5 Stocks That Could Get Hurt. 
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Data privacy drama can't stop Google. Ad business soars 20% 
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The United States sees the European Union as its top priority in a global effort to convince allies not to buy Huawei Technologies Co. equipment for next-generation mobile networks, a U.S. State Department Official said on Tuesday. Following meetings with the European Commission and the Belgian government in Brussels, U.S. officials are set to take a message to France, Germany and other capitals that the world’s biggest telecommunications gear maker poses a security risk, said the official, who declined to be named. 
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About $A190 million in cryptocurrencies have been frozen in the user accounts of Canadian digital platform Quadriga after the founder — the only person with the password to gain access — died in December. Read more

The UK's service sector stagnated last month, with new orders falling for the first time in two-and-a-half years, according to the IHS Markit/CIPS purchasing managers' index (PMI). The figures showed a reading of 50.1 in January, lower than December's 51.2. 
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Stock News

Mortgage Choice shares plummeted more than 30 per cent after the broker warned recommendations in the banking royal commission would hand even more power to the big banks, making it harder to access credit and driving up interest rates. 
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Freedom Insurance shares have been placed in a trading halt as the beleaguered insurance business continues to suffer fallout from the banking royal commission. The firm sought a trading halt on the ASX on Tuesday ahead of making an announcement to the stock market. 
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Navarre Minerals’ first-pass drilling confirms Fosterville-style gold potential at St Arnaud. The program delivered multiple encouraging gold and silver intersections representing similarities to the high-grade Swan and Eagle zones at Fosterville. 
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Kore Potash now moving towards construction at the Kola project 
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88 Energy prepares to drill promising Alaska well. 88 Energy Limited (ASX:88E, LON:88E) said drilling will get underway on Alaska’s North Slope later this month on a well targeting a prospective resource of 400mln barrels of oil. Winx-1 is around four miles east of Horseshoe-1/1A, which significantly extended the highly successful Nanushuk play fairway to the south. 
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Apparently, there were some complaints about a lack of a certain food. Be careful what you wish for.