Weekly market & economic update – 12 November 2010

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Headline developments of the past week Shares, commodities and commodity currencies like the Australian dollar have had a tough week partly on renewed European debt concerns and worries that further Chinese monetary tightening in response to rising inflation will threaten China’s economy and hence the global recovery. European sovereign debt problems have reared their ugly […]

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Investor Signposts: Week Beginning November 14 2010

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Upcoming economic and financial market events The big picture It never ceases to surprise how many people treat budget figures as facts rather than estimates. The Mid Year Economic and Fiscal Outlook (MYEFO) didn’t contain much that was new. The economic assumptions were tweaked and the bottom-line budget numbers barely budged, but still the Treasurer […]

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More looking, but not all finding work

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Labour force; Chinese data Employment rose by 29,700 in October, in line with forecasts centred on job gains of around 20,000. Fulltime employment fell by 14.100 and part-time jobs rose by 43,800 – the biggest gain in 15 months. The unemployment rate rose from 5.1 per cent to a six-month high of 5.4 per cent […]

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Confidence falls to five month low on rate hike

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Housing finance; Consumer sentiment As expected, the Westpac/Melbourne Institute index of consumer confidence fell in the latest month in response to the latest interest rate hike. The index fell by 5.4 per cent to a five-month low of 110.7 in November. Home lending recorded a modest rise in September. The number of new home loans […]

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Profit slump but Government still upbeat

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NAB business survey; Mid Year Economic and Fiscal Outlook (MYEFO) NAB business confidence index eased from +10.1 to +8.1 in October. The business conditions index fell from +6.7 in September to +1.6 in October – a 15 month low. CommSec has been highlighting for some time that the economy was far softer than the Reserve […]

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Stronger Aussie dollar outpaced by gains in oil price

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Job advertisements; Petrol price Petrol prices are set to rise – but modestly. The rally in the Australian dollar has been outpaced by gains in regional oil prices. According to the Australian Institute of Petroleum the national average retail pump price fell just 0.1 cents a litre last week to 123.5 cents a litre. The […]

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Weekly market & economic update: 5 November 2010

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Headline developments of the past week The contrast in global central banks was stark over the past week with those in weak countries such as the US, Japan and Europe leaving monetary conditions very easy and in the US actually easing further via more quantitative easing, whereas those in strong countries such as India and […]

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Investor Signposts: Week Beginning November 7 2010

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The big picture In the past there have been a host of factors cited by the Reserve Bank to justify lifting interest rates. So what about the most recent lift in rates, what were the factors driving the decision? This time around the answer is clear cut – it was all about inflation fears. Simply, […]

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Consumers remain super-cautious on spending

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Retail trade, International trade Retail spending grew by just 0.3 per cent in September, below expectations centred on a rise of 0.4 per cent. Non-food retailing rose by 0.4 per cent – the slowest growth in four months. In the September quarter, inflation-adjusted retail trade rose by 0.7 per cent (below forecasts for 1.1 per […]

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Reserve Bank returns to watchful stance

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RBA Statement on Monetary Policy; PCI The Reserve Bank has tinkered with economic growth forecasts, but the trajectory is largely unchanged. However the Reserve Bank has modestly downgraded inflation forecasts. The economy is tipped to grow by 3.50-3.75 per cent over 2011 and 3.75-4.00 per cent over 2012. Underlying inflation is tipped to be around […]

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