Wall Street held on to Monday’s gains last night on some positive housing data. Dow up 20.
The RBA is comfortable in doing nothing, but remains ready to act if and when necessary.
The RBA left the official cash rate at 3% at its June meeting.
The S&P 500 closed above its 200-day moving average last night for the first time in eighteen months. Dow up 220.
Retail sales and company profits data for Australia were released today and the numbers haven’t changed economist expectations of a small fall in GDP in the March quarter.
Commodities and commodity stocks extended recent gains, but the broader market was undecided until the last half hour, then it went up, up and away.
One academic believes the US Congress and Administration need a big wake up call. In the meantime the US bond market threatens the stock market.
A successful 7-year bond auction led to sighs of relief last night. Dow up 100.
Confidence was sapped on Wall Street last night as long bond prices tumbled. Dow down 170.
The Leading Index for Australia showed some positives in May, but don’t expect a recovery until the final quarter, say Westpac economists.