The Australian share market has extended its losses, as a 4%-drop on US markets overnight prompted investors to dump financial and mining stocks. Investors and consumers fear a global economic slowdown could take root as banks stop lending to each other and to companies, triggering job losses and falling demand. ''The evidence you see from the average man in the street who runs a business, he will tell you that his turnover is down 30% ... it is not just a bank problem now, far from it... Read Full Story

Australian shares ended a wildly volatile day 0.7% lower, as investors ignored an expected approval by the US Senate of the $US700 billion financial-rescue package and instead focused on a vote in the House of Representatives on the matter, which is expected on Friday US time. Zinc producer CBH Resources was up 0.6 cents at 7.9 cents as it launched a hostile $60 million takeover for Perilya just over two months after the companies terminated a friendly merger. Perilya soared 4.5 cents to... Read Full Story

Weak numbers for housing approvals and retail sales, coupled with the turmoil sweeping through global financial markets, mean the Reserve bank of Australia may now cut rates by as much as 50 basis points, economists said. RBC capital markets economist Su-Lin Ong said a picture was now forming that the RBA may cut more than the 25 basis points expected by some. "Amid a further deterioration in the global credit crisis and mounting downside risk to global growth, the risk is for a 50... Read Full Story

Centro chief executive Glenn Rufrano also said it was his preference to stay on at Centro as its boss beyond January when his formal contract runs out. He said he was keen to manage the company as it stabilises and begins to reorganise its corporate structure assuming its debt problems are eventually solved. "US private placement noteholders and the Australian financiers have confirmed their satisfaction with Centro's progress towards its recapitalisation and that the facilities of... Read Full Story

Plunging real estate prices and uncertainty in the global banking sector run the risk of creating a damaging loop between the financial sector and the economy, the Reserve Bank of Australia has warned. 'The problems in the global financial system are proving to be much more pervasive and costly than was anticipated by many observers a year ago,'' the RBA said. ''The recent difficulties have been compounded by a straining of the bond of trust between many banks and investors.'' ''Given... Read Full Story

While the US economy hovers near a recession and systemic problems in its banking system,Australia's resources industry has stayed strong, propelled by China's demand for commodities. The major Australian banks have - so far - escaped the credit crunch with little damage, as well. "One key characteristic that sets the Australian economy apart from the US (or the UK for that matter) is the consumer," he says. "In the US, consumers have been spending way beyond their means, spending in... Read Full Story

The Australian stockmarket trading was delayed for an hour as it further obtain more information about the latest issued banning of short-selling in the stockmarket. After an hour, Aussie stock market declared a three percent increase on its shares. "There will have to be a little bit of short covering for those companies that have been selling down stocks and that may provide a booster to the share market. "We're looking for the share market to open up 150 points higher but given these... Read Full Story

Macquarie Group shares came roaring back from the abyss this morning, jumping more than one-third in value, after their worst ever performance the previous day. Macquarie's share price has fallen as much as 65% this year, a long way from nearly $97 a share in May last year. Commonwealth Bank and National Australia Bank were among those most speculated to be prepared to do a deal with Macquarie, either through an alliance or equity stake. This would follow the lightning sale of the... Read Full Story

Local shares in Australia stocks market are expected to plummet due to the effect of the lastest financial turmoil in most of US biggest finacial companies. The Australian dollar, associated with risk-heavy investment strategies, received a momentary reprieve this morning from the beating it has taken at the hands of risk-weary investors. The Australian dollar, spiked to 80.23 US cents from 78.40 US cents in morning trade, only to return to 78.37 US cents, near March 2007 lows. Among... Read Full Story

It is indeed a global financial crisis, since it effects are felt worldwide. However, the Reserve Bank of Australia is still clinging on their faith to some local banks and had never any doubt on the competency of some local and commercial banks. The RBA has added extra cash to the banking system in the last couple of days seeking to ease funding pressures following the bankruptcy of US investment bank Lehman Brothers and worries about the future of insurer AIG. "There was never any... Read Full Story