Equities slide amid unease about Fed move
Before the Bell | Doubts about the timing of when the US Fed will begin to pare its bond buys is leading investors to rethink their outlook bets ■ Dow off 0.3pc ■ SPI futures down 9 pts ■ $A at US89.92¢.
BoE ties rate rises to drop in unemployment
The Bank of England broke with tradition, planning to keep interest rates at a record low until unemployment falls to 7 per cent or below, which it said could take three years.
Central bank talk dents European shares
European stocks slipped on Wednesday, weighed down by concerns that the US and UK central banks may start to tighten monetary policy sooner than markets had expected.
Goldminers admit complacency
Australian goldminers are starting to see some much-needed relief from rising costs as the broader mining sector cools and deny they could have acted sooner to reduce costs through internal measures.
Investment banks stung as China sits on huge IPO backlog
Delays to new listings linked to China’s bid to clean up corruption in its capital markets are well documented, but the tally of companies lined up to make a market debut has now risen to 700 by some reports.
US approves natural gas exports from third terminal
The Obama administration has approved natural gas exports from a third US facility as the government works through a long backlog of projects seeking permission to send gas abroad.
Experts divided on iron ore outlook
A third-quarter fall is forecast for iron ore prices amid an expansion of capacity from the world’s major suppliers. However, experts are divided on the cost of that fall.
India decides to relax some steel import standards
India said some steel products can be imported for certain critical applications without local quality certification, a move that could further hit domestic suppliers after imports rose 15 per cent last fiscal year.
Australia cannot cherry-pick reforms, says RBA’s Debelle
RBA assistant governor Guy Debelle has stepped up his push for a review of the major international regulatory changes to the financial system following the GFC, but says Australia cannot “pick and choose”.
ASX a sea of red as US Fed spooks markets
The Australian sharemarket closed down 1.9 per cent on Wednesday, led lower by heavy falls in US equities overnight and as more talk about the US Federal Reserve tapering its bond-buying program weighed on sentiment.
Welcome to the world of ‘zero’ real rates
Australia is the newest member of the “zero” club and the Australian dollar could be the economy’s ticket out.
Currencies
| AUD | USD | EUR | JPY | GBP | |
| AUD |  |
0.899 | 0.674 | 86.67 | 0.5801 |
| USD | 1.1121 |  |
0.7497 | 96.41 | 0.6453 |
| EUR | 1.4832 | 1.3337 |  |
128.58 | 0.8607 |
| JPY | 0.0115 | 0.0104 | 0.0078 |  |
0.0067 |
| GBP | 1.723 | 1.5493 | 1.1615 | 149.41 |  |
World Indices
| S&P;/ASX 200 | 5,011.3 | - 94.3 | - 1.85% |
| ALL ORDINARIES | 4,996.6 | - 91.4 | - 1.80% |
| S&P;/ASX 100 | 4,156.7 | - 77.5 | - 1.83% |
| SMALL ORDS | 2,094.5 | - 40.6 | - 1.90% |
| Dow Jones | 15,487.97 | - 30.77 | - 0.20% |
| S&P 500 INDEX | 1,692.30 | - 5.07 | - 0.30% |
| NASDAQ COMPOSITE | 3,656.88 | - 8.89 | - 0.24% |
| Wilshire 5000 | 18,023.93 | - 117.17 | - 0.65% |
| FTSE 100 | 6,511.21 | - 93.00 | - 1.41% |
| CAC 40 INDEX | 4,038.49 | + 5.92 | + 0.15% |
| SMI PR | 7,976.28 | - 20.51 | - 0.26% |
| XETRA DAX PF | 8,260.48 | - 39.25 | - 0.47% |
| HANG SENG INDEX | 21,588.84 | - 334.86 | - 1.53% |
| - | % |
| NIKKEI 225 INDEX | 13,824.94 | - 576.12 | - 4.00% |
| SSE COMPOSITE/d | 2,046.78 | - 13.72 | - 0.67% |
Market Outlook | Election won’t deter rate cuts
Phil Baker says the RBA is unlikely to be deterred by the election date announcement and will probably cut the official rate on Tuesday. More AFR TV
Indicators point to increase in misery
David Bassanese | In Australian politics, conservatives have a better economic record, but only by a whisker. They also have the dubious distinction of presiding over the highest levels of unemployment and inflation ever recorded.
History shows sharemarket investment can pay
Holding on to stocks over the past two decades has been a good strategy.
End bond-buying program, say Fed officials
Global markets were given a double dose of bad news overnight, with two senior US Federal Reserve officials cautioning that the central bank could begin to reduce its bond-buying program as soon as next month.
Savers suffer as cash rate cut
Those looking to eke out a living from savings, deposits and the like have seen their income drop by more than 30 per cent over the past two years.
A revenue grab with an upside
Far from being just ‘three new taxes’, three positive outcomes – not least of which will see fewer young Australians smoking – are actually good news for taxpayers.
Deposit guarantee won’t stop banks from failing
Unfortunately, a depositor insurance scheme and levy does not make a country’s banking system safer, nor does it stop banks from failing.
Time to unwind QE: senior Fed official
Richard Fisher, the head of the Federal Reserve Bank of Dallas, has said the central bank’s massive bond purchases has created a “monetary Gordian knot” which it now needed to unwind.
Lull anticipates rate cut, further currency decline
Derivative traders will be hoping that today’s expected rate reduction will provide markets with some momentum that was absent yesterday.
Abbott win could have CEOs finding excuses
Chief executives have a few excuses up their sleeves if their numbers aren’t up to scratch as the reporting season unfolds.
Payments reform at crucial stage
More than a dozen players in the payments industry are taking skills and pitching them to merchants, banks, the payment schemes and telcos.
‘Hawkish’ RBA sends doves out swinging
Economists’ faith in the Reserve Bank of Australia’s easing bias remains unshaken even though the central bank accompanied its heavily anticipated rate cut with a surprisingly neutral statement.
Analysts hang on RBA’s changed words
The Reserve Bank of Australia moved interest rates into uncharted territory when it lowered them to 2.5 per cent. The debate now is whether that is as low as it will go.
Emerging market roller coaster’s highs and lows
Emerging markets are trading at a sizeable discount to developed markets but not everything is a bargain. However, for those with an appetite for risk and a longer-term outlook, the recent correction presents a rare investment opportunity.
Fed speculation pushes debt funds down
Cash and very short-term fixed interest funds were the best places to have investments during the past three months while talk continued by the US Federal Reserve about scaling back its massive bond-buying program.
Taking stock
Newcrest’s earnings result to come under close scrutiny
Embattled gold producer Newcrest Mining will report its full-year profit next week and the result will be placed under intense scrutiny after a production downgrade, asset write-downs and a possible breach of market integrity laws.
Fonterra licks wounds after contamination admission
Fonterra, the world’s largest dairy exporter, may lose up to $NZ400 million in China alone after a botulism-causing bacteria was found in its whey protein concentrate, one analyst has predicted.
Equity Markets
Investment banks stung as China sits on huge IPO backlog
Delays to new listings linked to China’s bid to clean up corruption in its capital markets are well documented, but the tally of companies lined up to make a market debut has now risen to 700 by some reports.
Wall St dips for third session on Fed uncertainty
US stocks are falling for a third straight day on growing uncertainty over when the Federal Reserve may start to wind down its stimulus. Walt Disney is a key drag on the Dow.
Debt Markets
Macquarie busy away from home
Macquarie Group and its private funds are extremely busy across global markets, aligning with a recent company upgrade of earnings guidance for its funds unit.
$4m cheaper bid missed out on Queensland toll-road contract
RBC Capital Markets, which was short-listed for a contract to advise the Queensland government’s toll-road company offered to do the job for $2 million, but investment bank UBS was hired for $6 million, according to sources.
Currency Markets
Macquarie busy away from home
Macquarie Group and its private funds are extremely busy across global markets, aligning with a recent company upgrade of earnings guidance for its funds unit.
Fortescue chairman says Pilbara assets still for sale
Fortescue Metals Group chairman Andrew Forrest said the company was resolved to sell a minority interest in its Pilbara port and rail infrastructure assets so long as it could get good price.
