Bonds/Interest Rates

Europe is still weighing on sentiment as uninspiring economic data kept Wall Street at bay last night. Dow down 26.

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.

A strong US home sales result and some easing of Greek concerns added further fuel to yesterday’s relief rally. Dow up 111. (Locked for subscribers until 10:00 AEDST)

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 welcome bounce followed a positive manufacturing sector read in the US. Dow up 118.

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.

Wall Street put in a late rally post Fed-announcement, but metals had a horrible session last night. (Locked for subscribers until 10:00 AEDST)

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.