Daily FNArena News

Australia’s economic fundamentals remain significantly better than other industrialised nations and the stock market is well placed for a rebound.

The Australian Government’s stimulus package will help but CommSec suggests more needs to be done to combat falling household wealth levels.

“Yet another increase to the First Home Buyers’ Grant???” asks an incredulous Dr Steve Keen.

“A larger stimulus than any in recent history,” says Westpac.

The Westpac-Melbourne Institute Leading Indicators Index suggests economic activity levels in Australia will remain weak but the Government’s stimulus package should see recession avoided.

National Australia Bank’s September survey of business conditions and confidence levels returned mixed results and the bank has lowered its growth forecasts as a result.

Weaker economic conditions are creating a cyclical downturn in the oil market and analysts are lowering their price expectations accordingly.

Job ads for September fell once again indicating the Australian labour market is turning weaker.

Poor conditions in key markets has led Crane Group to lower earnings guidance for FY09 and risk still remains to the downside.

The move by the government to guarantee deposits and wholesale bank funding was necessary given similar global moves.