Australasian Investment Review (AIR) is a free daily news service with a weekly online magazine covering global financial markets with a focus on Australia, New Zealand and Asia.
The market has started the week off promisingly – up 99 or 2.5% - despite the SFE Future suggesting a 21 point fall this morning after Wall Street struggled on Friday. Resources and energy outperforming. Both BHP and RIO both up 4%. Warren Buffett announced on Friday he was buying the US equity market for his personal account. Quiet a few companies continue to register fresh yearly lows: Clive Peters, McPherson's, Photon Group, Pan Australia and Reece Australia.
Surprisingly, the September quarter's Consumer Price Index will be one of the most anticipated for sometime, but for less obvious reasons.
Recession and not impending collapse now dominate the thinking in financial markets, especially among equities investors.
Gold took the brunt of the commodities sell off last week, ending with a nasty $US16 plus fall on Friday.
Struggling South Korea has further boosted its attempts to stabilise its weak currency and financial markets.
The market is having an up-day for a change – up 35 or 0.9% - but not the 201 point gain the SFE Futures suggested. Was up 137 points early on. Resources are mainly to blame – the sector is underperforming overall on the back of metals prices getting smashed overnight, along with the gold and oil price. Resources unchanged at midday, energy up 1%, property up 3.5%, and financials up 1.1%.
The financial and economic volatility has forced the National Australia Bank to bring forward its 2008 earnings report 10 days to next Tuesday, and seen the bank confirm that earnings will be lower.
The collapse in the world price of oil hasn't had much of an impact on Woodside Petroleum.
