How do you know the time is right to buy or sell shares
Euphoria over the US Fed’s decision not to reduce quantitative easing immediately is pushing equities higher. But it also underlines the difficulty investors face timing investments in a sharemarket under the sway of unpredictable international factors.
$A extends retreat as greenback edges higher
The US dollar on Friday edged up from this week's seven-month low, helped by comments from Federal Reserve officials suggesting a reduction in stimulus could be much closer than many thought.
Wall St falls as Fed officials cloud outlook
Updated | US stocks fell on Friday as investors puzzled over the Federal Reserve’s decision to maintain its stimulus measures as they heard opposing viewpoints from top Fed officials.
Fed could taper in Oct, depending on data: Bullard
The Federal Reserve could still scale back its massive bond-buying program at an October meeting should data point to a stronger economy, St. Louis Fed president James Bullard said.
Gold sinks on new fears Fed may reduce stimulus
Gold sank 2.5 per cent on Friday as institutional investors sold aggressively after the Saint Louis Fed president said the US central bank might move next month to reduce stimulus spending.
European shares creep lower as Fed boost wears off
European shares shed some of their gains from the US Fed's decision to keep its stimulus programme in place but still ended up for their third straight week.
Equity gains lose their lustre in the cold light of inflation
Any investor who’s been celebrating since the S&P/ASX Accumulation Index edged past its previous November 2007 peak might want to put the party hat away.
ASX slips but closes up for 6th consecutive week
The Australian sharemarket has closed higher for a sixth week in a row as investors globally were cheered by a surprise announcement the United States Federal Reserve had left its program of monetary stimulus unchanged.
‘Curb your enthusiasm on domestic recovery’: Merrill
Don’t get too excited about the domestic recovery, says Merrill Lynch, as it raises exposure - again - to the US recovery and softens its stance on yield stocks.
Pimco warns on $A, housing
The world’s largest bond fund, Pimco, says a sustained period of easy money could keep the $A and damage Australia’s economy by forcing investors to chase higher returns in property.
Currencies
| AUD | USD | EUR | JPY | GBP | |
| AUD |  |
0.9392 | 0.6944 | 93.26 | 0.5867 |
| USD | 1.0644 |  |
0.7393 | 99.31 | 0.6246 |
| EUR | 1.4393 | 1.3529 |  |
134.27 | 0.8446 |
| JPY | 0.0107 | 0.0101 | 0.0074 |  |
0.0063 |
| GBP | 1.7035 | 1.6004 | 1.1832 | 158.92 |  |
World Indices
| S&P;/ASX 200 | 5,276.7 | - 18.8 | - 0.36% |
| ALL ORDINARIES | 5,270.8 | - 17.8 | - 0.34% |
| S&P;/ASX 100 | 4,373.5 | - 14.6 | - 0.33% |
| SMALL ORDS | 2,229.9 | - 14.9 | - 0.66% |
| Dow Jones | 15,451.09 | - 185.46 | - 1.19% |
| S&P 500 INDEX | 1,709.91 | - 12.43 | - 0.72% |
| NASDAQ COMPOSITE | 3,774.73 | - 14.66 | - 0.39% |
| Wilshire 5000 | 18,216.53 | - 121.40 | - 0.66% |
| FTSE 100 | 6,596.43 | - 28.96 | - 0.44% |
| CAC 40 INDEX | 4,203.66 | - 2.38 | - 0.06% |
| SMI PR | 8,105.39 | + 13.10 | + 0.16% |
| XETRA DAX PF | 8,675.73 | - 18.45 | - 0.21% |
| HANG SENG INDEX | 23,502.51 | + 385.06 | + 1.67% |
| - | % |
| NIKKEI 225 INDEX | 14,742.42 | - 23.76 | - 0.16% |
| SSE COMPOSITE/d | 2,191.85 | + 6.29 | + 0.29% |
QE pressures RBA
The RBA will be feeling the heat from the Federal Reserve’s decision not to taper QE as the Australian dollar rises. More AFR TV
Invest in the P/E tool
The price-earnings ratio expresses the cost of a company’s shares relative to its earnings per share, proving a useful tool for investors.
Yellen no shoo-in for Fed chairmanship
Larry Summers is out, leaving plenty of worthy candidates to contend the top role at the US Federal Reserve.
Below-trend economy in RBA forecast
The minutes to the RBA’s September policy meeting suggests the Bank still retains a modest bias to ease interest rates further – as they should.
Slovenian banks shaky under pressure from debts
After Slovenia announced that it may be forced to liquidate two of its smaller banks, it now looks possible that the country may be forced to seek a bailout.
Remembering Lehman Brothers
As bewildered veterans loitered outside Canary Wharf five years ago, it was left to the young ones to seize the moment. So they raided the marketing cupboard for mementos of one of the most profound events in financial history to flog on e-Bay.
Gold, silver drop on US Fed stimulus concerns
Precious metals were hammered as investors became increasingly concerned that the US central bank will decide to start cutting back its bond purchases at next week’s policy meeting.
Waiting for a fairytale start
If employers were planning a fairy tale welcome for the Abbott Government, there was no sign of it in August jobs numbers.
UK economy improving, but risks remain
The speed of Britain’s economic recovery has caught investors and analysts by surprise and many economists are expecting growth of at least 2 per cent next year.
Why we should be worried about Australia’s housing market
Joye | While the fundamentals of Australia’s housing market may remain solid, there are concerns about what lies around the corner – and we’re talking months, not years.
There is no road map for QE3
US Federal Reserve efforts to inform investors have created confusion. Investors have been on near-permanent “Fed watch”, pushing stocks higher, lower and higher again through cycles of good and bad economic data, and ceaseless talk of a QE taper.
ASX escapes a damaging debate
The Australian Securities Exchange had no choice but to clear the decks when two of its directors became caught up in a US investigation into short-selling.
Bearing down on toppy Aussie banks
Foreign hedge funds have been betting against Australian banks, shorting stock in the big four. Notwithstanding the sector having risen 27 per cent over the year to date, there are certain characteristics of Aussie bank shares that work in favour of the short-seller.
Buffett having ‘hard time’ looking for purchases
Legendary investor Warren Buffett says record stock prices are currently around fair value and that the Fed’s extended stimulus will support asset prices.
Taking stock
Bega Cheese a hit with investors
Investors and analysts are backing Bega Cheese to add value and grow earnings if its $319 million takeover bid for Warrnambool Cheese & Butter Factory succeeds.
Fibre plan ups TPG’s capex
TPG Telecom’s capital spending plans will increase significantly over the next three years thanks to plans to build a fibre to the building (FTTB) network.
Equity Markets
Stock funds worldwide have record $US26bn inflow
Investors poured a record $US26 billion into stock funds worldwide in the week ended September 18 as global markets rallied, a Bank of America Merrill Lynch Global Research report showed.
Wall St falls as Fed officials cloud outlook
Updated | US stocks fell on Friday as investors puzzled over the Federal Reserve’s decision to maintain its stimulus measures as they heard opposing viewpoints from top Fed officials.
Debt Markets
Stock funds worldwide have record $US26bn inflow
Investors poured a record $US26 billion into stock funds worldwide in the week ended September 18 as global markets rallied, a Bank of America Merrill Lynch Global Research report showed.
Pimco warns on $A, housing
The world’s largest bond fund, Pimco, says a sustained period of easy money could keep the $A and damage Australia’s economy by forcing investors to chase higher returns in property.
Currency Markets
$A extends retreat as greenback edges higher
The US dollar on Friday edged up from this week's seven-month low, helped by comments from Federal Reserve officials suggesting a reduction in stimulus could be much closer than many thought.
ASX slips but closes up for 6th consecutive week
The Australian sharemarket has closed higher for a sixth week in a row as investors globally were cheered by a surprise announcement the United States Federal Reserve had left its program of monetary stimulus unchanged.
