Test Post for mining shares

mining stocks
miningstocks
nining stocks
ining stocks
muning stocks
moning stocks
mibing stocks
miming stocks
minung stocks
minong stocks
minibg stocks
minimg stocks
mininf stocks
mininh stocks
mining atocks
mining dtocks
mining srocks
mining syocks
mining sticks
mining stpcks
mining stoxks
mining stovks
mining stocjs
mining stocls
mining stocka
mining stockd
jining stocks
kining stocks
m8ning stocks
m9ning stocks
mkning stocks
mjning stocks
mihing stocks
mijing stocks
min8ng stocks
min9ng stocks
minkng stocks
minjng stocks
minihg stocks
minijg stocks
minint stocks
mininy stocks
mininb stocks
mininv stocks
mining wtocks
mining etocks
mining xtocks
mining ztocks
mining s5ocks
mining s6ocks
mining sgocks
mining sfocks
mining st9cks
mining st0cks
mining stlcks
mining stkcks
mining stodks
mining stofks
mining stocis
mining stocos
mining stocs
mining stocms
mining stockw
mining stocke
mining stockx
mining stockz
resource shares
resourceshares
eesource shares
tesource shares
rwsource shares
rrsource shares
reaource shares
redource shares
resiurce shares
respurce shares
resoyrce shares
resoirce shares
resouece shares
resoutce shares
resourxe shares
resourve shares
resourcw shares
resourcr shares
resource ahares
resource dhares
resource sgares
resource sjares
resource shsres
resource shaees
resource shates
resource sharws
resource sharrs
resource sharea
resource shared
4esource shares
5esource shares
fesource shares
desource shares
r3source shares
r4source shares
rdsource shares
rssource shares
rewource shares
reeource shares
rexource shares
rezource shares
res9urce shares
res0urce shares
reslurce shares
reskurce shares
reso7rce shares
reso8rce shares
resojrce shares
resohrce shares
resou4ce shares
resou5ce shares
resoufce shares
resoudce shares
resourde shares
resourfe shares
resourc3 shares
resourc4 shares
resourcd shares
resourcs shares
resource whares
resource ehares
resource xhares
resource zhares
resource syares
resource suares
resource snares
resource sbares
resource shqres
resource shwres
resource shzres
resource sha4es
resource sha5es
resource shafes
resource shades
resource shar3s
resource shar4s
resource shards
resource sharss
resource sharew
resource sharee
resource sharex
resource sharez

Australian market update

UPDATE: Australia Business Pummeled With More Pain To Come

  Australian businesses continued to be pummeled in June by tightening monetary conditions, falling share prices and the effects of the global credit crunch.

According to a survey by National Australia Bank published Tuesday, business confidence in June fell to its lowest levels since the recession of mid-1991, while overall business conditions were at their weakest since late 2001.

Economists said the survey data are further evidence Australia’s economy is slowing rapidly as interest rate increases earlier in 2008 quash demand.

The pace of the economic slowdown gives the Reserve Bank of Australia ample scope to lower its official cash rate target, but not until 2009, NAB added.

The RBA aggressively raised interest rates at the start of 2008 hoping to engineer an economic slowdown. NAB said the RBA’s tonic is working and rates could be cut to 6.00% by late 2009 from 7.25% now.

NAB’s index of business confidence fell 4 points in June from May to -8 points, while its index of business conditions fell 7 points in June from May to +6 points.

An index measuring trading conditions fell 10 points in June to +7 points while profits fell 6 points to +2 points. Forward orders dropped 5 points to -1 points while employment indicators also slumped.

The data meshes with widening evidence of a slowdown in housing construction, lending and retail activity.

Of concern is the fact NAB’s survey predates news this week that local pension funds posted their worst investor returns in almost two decades.

The median for the year to June was a loss of 6.39%, compared with a gain of 15.7% a year ago, according to industry analysts SuperRatings.

Moreover, news in recent days of more than A$2 billion in writedowns by banks associated directly with the U.S. housing meltdown is likely to further business confidence in the months ahead.

Commercial banks also raised mortgage lending rates in July, further straining consumer budgets. Investors are also bracing for the annual profit reporting period in August with forecasters expecting profit pain in the year ahead.

"Reporting season will have an impact on investor confidence, which could have an indirect impact on business confidence if the share market is affected," said AMP Capital Investors chief economist Shane Oliver.

"It all combines to some degree because obviously all the bad news internationally along with the falls in share markets would be affecting business confidence," Oliver added.

Recent events have been a wake-up call for the Australian investment community.

"People in Australia are now coming to the realization that financial instability in the global financial markets does effect them," said Stephen Walters, chief economist at JPMorgan.

NAB announced forecast global economic growth in 2009 of 2.75%, down from 3.4% in 2008.

"This reflects further negative wealth effects from lower equity and house price markets, higher oil prices and a view that financial conditions will be tighter for longer," said Alan Oster, chief economist at NAB.

Economic growth in Australia in 2009 is likely to be 2.25%, down from 2.75% in 2008, NAB added. It had been expecting the economy would grow 2.75% in 2009.

Core inflation, a key consideration for policy makers at the RBA, is set to return to the central bank’s 2%-3% target band by mid-2009. Core inflation is currently running at more than 4.0%.

 

Technorati Tags:
~~ Stock Picks and Stuff from JJ ~~

Leave a Reply

Your email address will not be published. Required fields are marked *