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 is down 77 after being down 94 at worst following a solid rise of 1.17% in the US Friday – albeit on lower volumes. Underperforming the 15 point rise predicted by the SFE Futures this morning. Resources down 2.2% - BHP and RIO down 3.8% and 5.7%. Financials down 2.6% with the major banks all down. Industrials down 2.9%.
US and European stock markets will be looking for more gains in coming days after the strongest bounce for weeks last week.
Global recession moved closer on Friday after some poor figures from Japan and Europe, while more gloom percolated out of China.
Oil will dominate interest this week in commodity markets, even after OPEC members delayed a decision on whether to cut production again this year.
Interest rates will again be the focus in the week ahead with reductions expected (slashes more like it) in Australia, the UK, Europe and New Zealand.
Our market is up 92 - outperforming the 32 point rise the SFE Futures predicted. The US market was closed for Thanksgiving Day. We have received a strong lead from the European markets – Resources outperforming thanks mainly to BHP and RIO jumping 5.9% and 7.0% respectively. Metal stocks all up. Energy stocks doing well despite the slight fall in the oil price overnight. Financials flat and the main banks mostly down.
All those people who still believe Australia won't dip into recession in 2009, as the IMF, OECD, Federal Treasury and Reserve Bank, should think again.
Further confirmation yesterday that the slowdown in capital spending, especially on mining, is accelerating.
