Daily FNArena News - Australia

Both Macquarie and BA-Merrill Lynch have initiated coverage on Arrow Energy this week but with different views.

The RBA surprised the market and kept the cash rate target at 3.75% leaving analysts and economists to scramble for explanations and new predictions.

The bottom line is that the RBA raised its cash rate an unprecedented three months in a row last year, and now it would like to let tightening take effect before making the next move.

NAB’s survey into business confidence has generated a surprisingly large drop in December.

A 0.8% increase in January in the TD Securities-MI inflation gauge suggests Australian inflation momentum is picking up.

ANZ’s latest survey into job ads in Australia showed an unexpected decline.

Last week Citi and Credit Suisse lifted forecasts for Macquarie Group. Today RBS Australia and BA Merrill Lynch have followed suit, both also upgrading to Buy ratings on the stock.

Paladin’s production and sales in the December quarter fell short of broker expectations and so earnings have been revised down, but some still see long-term value in the stock.

Australian inflation data for the December quarter came in slightly above market expectations, meaning an increase in interest rates next week appears all but assured.

With the current strength in the Leading Indicator growth rate just another positive factor for Australia, another rate hike must be looming.