Bonds/Interest Rates

The market is concerned the big Australian banks are not the investment proposition they once were, and that margins will come under further pressure. Not all analysts agree.

Australia continues to enjoy strong population growth and this is supporting the economy despite global economic weakness.

In a meandering day for stocks, the highlight was a lower US dollar allowing copper to finally take the psychological US$8000/t level. Dow down 22.

ANZ economists expect rising commodity exports to force the RBA’s hand into a much more restrictive monetary policy setting.

ANZ Banking Group suggests the Chinese government needs to introduce some additional policy changes to maintain the long-term development of the property market.

While stocks recovered from a weak US consumer confidence survey the US dollar fell, allowing gold to push through the US$1300 mark. Dow up 46.

The market is building in an assumed consumer recovery in 2011 on the strength of the Australian economy. But strategists argue such assumptions ignore a post-GFC change in the consumer mindset.

Moody’s and Bob Prechter conspired to send Wall Street lower last night after the big Friday rally. Dow down 48.

Economists debate the likely path of the global economy over the next twelve months. It’s all about policy.

A wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead.