It’s not often that positive economic news translates into bad news for investment markets. In the case of the surprisingly positive US economic data though (please refer to the market comment for details), that is exactly what happened. The news prompted fears that Bernanke would have to raise rates sooner than previously expected.

Although institutional investors benefited the most, capital raisings have proved a lucrative source of returns over the last year. With the worst of the crisis now passed and balance sheets in considerably less stress, that is not likely to be the case next year. As we highlighted last week though, biotech battler Avexa has decided to round out the year’s capital raisings with another of their own.

There is no need for the company to worry about finance now. Zijin Mining Group Company Limited has lodged a substantial shareholder notice and is launching a full takeover bid for the company. Zijin’s $1.28 share offer has full support of both the Board and the company’s major shareholder Xstrata Queensland Limited. The bid values the company at around $550m on a fully diluted basis.

The specialist waste management and industrial skills of Tox Free Solutions are in demand. The company has recently won a contract in the Pilbara region of Western Australia to service Rio Tinto’s iron ore operations. Others could follow.

Wesfarmers’ November 2007 acquisition of Coles for $19.7 billion at the peak of the market, pitched the conglomerate squarely into comparison with Woolworths. Since then, the story has been one of recovery in Coles rather than the leadership of Woolworths.

It is quite clear that the phenomenal equity and commodity market rally that we have seen through the best part of this year is a direct reaction to the GFC policy response. In the first instance, the flood of liquidity and other stimulus measures averted the very real threat of a 1930s rivalling recession. This saw equities correct from deeply over-sold positions as it became clear that the reality for corporate earnings would not match the previously dire outlook.