Bonds/Interest Rates

The Dow put on another 400 points.

The Dow closed down 127 points on Friday, but moved in only a 560 point range!

Australia’s economic fundamentals remain significantly better than other industrialised nations and the stock market is well placed for a rebound.

The Australian Government’s stimulus package will help but CommSec suggests more needs to be done to combat falling household wealth levels.

Weak economic data triggered a fall on Wall Street while the return of the three o’clock wave ensured a close on the low. Dow down 733.

“Yet another increase to the First Home Buyers’ Grant???” asks an incredulous Dr Steve Keen.

“A larger stimulus than any in recent history,” says Westpac.

The Westpac-Melbourne Institute Leading Indicators Index suggests economic activity levels in Australia will remain weak but the Government’s stimulus package should see recession avoided.

After another wild ride the Dow closed down a mere 76 points following the official release of the latest comprehensive rescue plan in the US.

National Australia Bank’s September survey of business conditions and confidence levels returned mixed results and the bank has lowered its growth forecasts as a result.