Bonds/Interest Rates

ANZ job ads data point to a continuing fall in the unemployment rate, which is not good news for interest rates.

The Fed will do nothing on Tuesday and the RBA will hike on Wednesday if consensus expectations are accurate. The Australian results season steps up a gear.

Weak jobs data set the market off again as a US mortgage lender went under and Bear Stearns fuelled the pessimism.

Commonwealth Bank economists agree with TD Waterhouse’s Koukoulas the RBA is likely to add 25 basis points to the official cash rate next week.

The Dow posted its second consecutive rally last night – the first time it has put two up-days together in three weeks.

TD Waterhouse’s Stephen Koukoulas believes investors better not bet on an anxious RBA leaving interest rates unchanged at the August meeting.

Wall Street traders could be forgiven for feeling nauseous at day’s end following a session dominated by extreme volatility, culminating in a strong rally in the final twenty minutes.

Monthly retail sales and trade data delivered mixed signals for the Australian economy but this has not changed the view of a number of ecocnomists the Reserve Bank will lift rates next week.

Early strength on Wall Street was killed off last night as a large mortgage lender announced trouble and the Fed declared the market was on its own.

Late buying in the Australian market was reflected on Wall Street as the Dow, too, opened lower but closed higher.