As the Aussie results season gets underway proper this week, we have some more data for the RBA to chew over, and a lot of data to frighten the US.
The pattern has been broken as the Dow fell another 200 points on Friday despite a strong economic growth number. The Aussie continues to be slaughtered.
Goldilocks fled the scene last night as exceptionally poor housing data finally overshadowed any earnings reports and credit contagion ruled the day. Carry trade unwinding began in earnest stripping more than a cent off the Aussie.
Another Australian hedge fund has suspended redemptions while an Italian bank is close to going under. And GaveKal contemplates the $5 Hermes tie.
A spectacular result from Amazon headed the positives on Wall Street last night as growing LBO disquiet and very poor housing data reinforced credit market problems. Goldilocks was ahead on the day.
Inflation has again reared its ugly head as the quarterly CPI outcome was stronger than the market expected, leading economists to agree rates seem to be heading higher.
The Dow was down 227 points last night as America’s biggest mortgage lender reported a 35% fall in profit, and it wasn’t all because of subprime.
A booming Chinese economy might be great news for Australia, but the bigger they are…
The Dow posted a 92 point rally last night as M&A shouldered aside subprime and Merck posted a good result.
The Australian CPI will be out on Wednesday while the RBNZ will make a rate decision on Thursday.