Markets Live: ASX soaring high on easing tensions

Aluminium prices have risen to prices not seen in at least the past five years after falling nearly 12 per cent throughout the March quarter.

Sanctions of Russian aluminium giants Rusal sent the price of aluminium soaring 18 per cent this week as the market responded to a diminished supply of aluminium.

CBA analysts said they are predicting that prices will begin to drop however, as the market responded to the "over-reaction." "We feel a price of ~$US2,250 a tonne is fair in the short term," they said. "But we are not surprised that prices have jumped above those levels given the immediate deficit worries."

Aluminium is trading at $US2,377 a tonne.

Another check of the markets and the S&P/ASX 200 index is still doing well up 23 points to 5,838.8.

Rio Tinto is leading the market today, up 2.6 per cent to $78.69 and adding 3.1 points to the index.

The British pound has risen this week to a nine-month high against the euro which has been weaker on the back of trade concerns with the US.

The pound has grown throughout April, reaching prices not seen since June of 2017.

Morgans have upgraded its recommendation for Rio Tinto from "hold' to "add" on the back of recent share price weakness and higher aluminium price forecasts.

US sanctions on Russian aluminium giant Rusal has led Morgans to upgrade their aluminium price forecasts, increasing the discounted cash flow valuation for Rio by 9 per cent.

Treasury Wine Estates is undergoing a major distribution overhaul and eyeing off acquisitions.

The company's chief financial officer, Gunther Burghardt will transfer from his current job to become the executive vice-president of operations for the Americas.

Treasury is reportedly casting around for potential acquisitions in the US in the premium wine segment.

Read the full story here.

ARCO Investment Management's portfolio manager George Colman says the Royal Commission has revealed the bank's poor lending practices and could lead to credit tightening.

He says that Australian companies without strong offshore activity could be affected in the wake of the Commission's findings.

"The regulator has long been trying to reign in poor lending practices and shining the light on these via the Commission can only lead, in our view, to tighter credit conditions with a consequential negative impact on house price appreciation, development and construction, and bank credit quality," Colman says.

"By extension, a slowing of credit activity can have a large impact on our broad economy. Thus, we continue our preference for companies with strong offshore franchises and, or defensible "self-help" strategies, while also being cognisant that sharp market declines often create attractive entry points for longer term investments or topping up of existing positions".

Checking back in with the market at midday and the S&P/ASX 200 index is up 0.5 per cent or 26.7 points to be sitting at 5,842.

BHP Billiton and Rio Tinto are weighing positively as is Commonwealth Bank. Aristocrat Leisure, CSL and Macquarie are also helping the index up.

The latest round of US sanctions against Russia has triggered a rethink on the outlook for aluminium, with TD Securities seeing the global market turning into a supply deficit this year.

Prices for the metal are heading towards their biggest weekly leap in more than three decades, according to Bloomberg.

Blue Sky Alternative Investments-owned shoe retailer Aquila breached certain terms with its bankers, according to financial accounts, writes Jonathan Shapiro, as more doubts are raised about the under-seige alternative asset manager's disclosure about the value of its investments.

The operating entity of the men's footwear retailer Gaynor Shoes reported a $1.07 million loss during the 2017 financial year, according to financial accounts lodged with the regulator in October last year.

Read the full story here.

A great piece out today on Afterpay's Nick Molnar and how he taps into Millennials' spending habits and wallets.

It's a great look at how the former Sydney University commerce student went from packing boxes in his parent's front room to running one of the brightest new technology companies in Australia.