BUSINESS

It is without doubt that the "boy child" El Niño has definitely stirred the whole world. While most dread its potential impact, some however gladly await its arrival. El Niño induces droughts in some parts of the world, while it could drench other nations.

Discretionary spending is always the first part of the economy to suffer in nervous markets. Consumer sentiment globally is just starting to slip, after having run up very solidly over the past three to four months, and it this now shifting to discretionary earnings.

US Philadelphia Federal Reserve President Plosser spoke on Tuesday, commenting that the $2.5 trillion in reserves accumulated by banks could be the trigger for more rapid inflation if banks start lending money quickly in an improving economy. Plosser said it was the ´´natural tendency´´ for central banks to wait too long to raise rates. He believes there was increasing evidence that rates should be lifted from the current zero levels ´´if not now, then relatively soon´´, particularly in light of ...

Local stocks recovered this afternoon, managing to rise slightly for the first time in three trading sessions. Continued concerns about an oversupply of iron ore and weaker than expected property price growth in China was put to one side, following Monday's 1.3 per cent plummet.