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.
We saw the final shape of the global bank bail-out and guarantee program overnight, our time, with the Bush Administration revealing a $US250 billion first stage to inject capital into sound, but needy groups and to guarantee some bank debt for three years.
For the moment at least, China's exporters have defied slumping US and European economies as the annual Christmas supply period ramps up.
The market is flying today – up 213 or 5.1% at midday - on the back of Wall Street's record breaking bounce overnight. The SFE futures predicted a 306 point gain in the market this morning. The banks are regaining some of their recent heavy losses. Resources pumping. Fortescue up 48%. Industrials up 5.3%. Property up 5.2%.
Markets surged worldwide, rebounding from their worst week in decades, after governments in Australia, Europe, the US and Asia agreed to support banks and combat the credit crisis.
The volatile stockmarket is not stopping some companies from pursuing strategic options.
A spark of life in the listed securities of property investor and funds manager, Valad Property Group after it delivered mixed news for investors, especially about prospects in 2009.
France, Germany, Spain, the Netherlands and Austria committed 1.3 trillion euros ($US1.8 trillion) to guarantee bank loans and take stakes in lenders, racing to prevent the collapse of the financial system.
The ANZ Bank says Australia will be looking at much higher unemployment than expected in a year's time.
The market has started the week off well and is recovering most of Friday's heavy losses – up 210 or 5.3% - blitzing the 27 point gain the SFE Futures predicted this morning. Since Wall Street closed on Friday, 15 European leaders in a unified approach have agreed to guarantee all new bank debt until end of 2009 and prop-up any big lender to prevent any more collapses. Australia has also guaranteed interbank lending and bank deposits (unlimited) – all central banks had to follow suit or risk being frozen out of interbank markets by other countries that have guarantees. There is also a comment this morning from the Chinese Central Bank saying they will promote rapid growth.
Well, New Zealand, Australia and then other Asian markets will take the lead today as the US has a part public holiday tonight for Columbus Day.
