Daily FNArena News - FYI

Investors banking on a relief rally the coming week be warned: there might be a nasty surprise in store still.

ANZ’s overview of businesses in Australia shows continued growth in output, but rising cost pressures suggests profitability has peaked this cycle.

According to CBA economist Michael Blythe there is a chance investors are overplaying the fears of a US downturn as while the short-term outlook remains tough a recession is no certainty.

Weekly musings from your editor. If the trend is no longer investors’ friend, what should they do instead?

US shares have staged the rally that was believed to be overdue, but headwinds remain, according to strategists at BCA Research.

The coming week should provide more news about Centro Properties, but above all a queue of major economic data in Australia and the US will capture the attention of investors this week.

These are testing times for market bulls. US shares continued their three week fall on Friday and the major share index in Australia might be testing critical technical support on Monday.

ANZ Bank and Danske Bank have revised their currency estimates for 2008 and while the US dollar should continue to struggle the yen rather than the Australian dollar is tipped to benefit.

Goldman Sachs has joined the likes of Merrill Lynch in putting the odds of a US recession at 100%.

Weekly musings from your editor. What to buy for 2008? We read the experts and report about their tips and predictions.