According to TD Securities the Australian economy has a good track record of solid performance in times of global market volatility, a trend expected to continue through the current credit crisis.
Analysis by Deutsche Bank analysts has revealed St George Bank’s capital and earnings outlook is now under threat due to the ongoing freeze in debt and credit markets.
The Dow was down 143 points last night in choppy trade. It seemed all news was bad news.
Weekly musings by your editor. This week I review two expert reports with interesting conclusions about the share market.
The world’s second largest economy is on the brink of recession, and a strong yen is only going to exacerbate the problems. In the meantime, global commercial paper markets remain frozen.
TradeTech lowered to US$85/lb but peer UxC has kept its own weekly spot price indicator at US$90/lb.
In recent weeks the yen has had an inverse relationship with equity prices, making it a good barometer of the risk appetite for global investors.
Australia’s cash rate remains at 6.5%.
The first day back from holidays saw a tech-led rally on Wall Street while gold has broken resistance and shot higher.
A shock GDP number suggests an interest rate rise should be forthcoming as soon as the markets settle down.
