Yesterday the Australia share market was buoyed on hope that China's economic stimulus plan would increase demand for resources. Mining and energy sectors rose on the news. The benchmark S&P/ASX200 index gained 56.5 points, or 1.4%, at 4,107.8 while the broader All Ordinaries index had advanced 53.4 points, or 1.3%, to 4,060.
With the Reserve Bank forecasting a sharp slowdown in our export income from minerals and commodities next year, it's understandable that two major miners, Rio Tinto and Oz Minerals, have revealed plans to curtail output of some products or review other operations.
Chemicals maker Orica Ltd has declared an 11% rise in annual profit, and expects another rise in 2009.
At week's end, Wall St. rebounded with about 2.9% rise on hopes for further US rate cuts and President-elect Barack Obama's call for another economic stimulus plan. China's announcement over the weekend that it will spend 4 trillion yuan by 2010 to help re-ignite growth may also shore up Australian stocks, particularly miners.
Out market is up 81 points after being up 100 points around 11:30am. Outperforming the 24 point rise predicted by the SFE Futures this morning.
There should now be no doubting the depth of the approaching US recession.
The red warning light is flashing at an increasing pace for the US car industry as Ford, GM and Chrysler burn through the cash and get close to just the fumes left in the bank account.
