The Australian market had a very volatile start to the week, with stocks rallying strongly in the dying minutes of the session. Stocks slumped by as much as 1 per cent in the first hour of trade, only to steadily rise from 11am (AEST) onwards and spike in the final 30 minutes of trade. The All Ordinaries Index (XAO) closed 0.6 per cent higher.
Before we get to the wonderful world of investing, it's important to set the scene. Make yourself a cup of hot chocolate, sit down and get ready for your blood to boil. You're about to find out how financial markets really work...
Since the early 1980's the financial sector has ridden an extraordinary wave of prosperity. The combination of increasing debt levels and rising share markets turbo-charged the growth in the banking and investment industries.
The lesson of today's Daily Reckoning is that if you want to blow a massive asset bubble in order to make people feel wealthier, you had better do it in the real estate market and not the stock market. Liquidity driven gains in the stock market are bigger, faster, and more impressive in the short term. But they're also easy come, easy go.
Before we identify the thief of your capital gains, a quick note to make sure you don't miss out on tomorrow's instalment of the revolution. What revolution?
'Behind every great fortune is a great crime,' said French novelist Honoré de Balzac. What crime lies behind Booz Allen Hamilton?
Canadian sportswear retailer Lululemon Athletica - CEO, Christine Day is stepping down after the recent problems with a line of yoga pants that were inconsiderately see through.
After falls of around 1 per cent this morning, a comeback from the financial sector is helping minimise the losses. The All Ordinaries Index (XAO) is down by just 0.1 per cent after recording its biggest improvement of the year on Friday. The miners are the biggest contributors to the losses however this is being balanced by gains of as much as 1.6 per cent from the banks.
- China cautious- Steel output steady- Modest support for iron ore- No timeframe for turnaroundBy Andrew NelsonCommodities analysts at ANZ Bank recently returned from a trip to China and they say the mood there remains cautious.
Kathleen Brooks, Research Director UK EMEA FOREX.comWe are rounding off a week where USDJPY rose to a high of 99.
After a lacklustre run this shortened trading week, the Australian market recorded its biggest daily rise of 2013. The All Ordinaries Index (XAO) jumped by a solid 1.9 per cent after two straight sessions of 0.6 per cent losses.
The Australian share market is rebounding in early trade on Friday, following gains on offshore markets and after local stocks hit 2013 lows during yesterday's trade.
Before we launch into today's episode of the Daily Reckoning, a correction from yesterday. In our table of the seven largest Japanese stocks, we incorrectly labelled the share price (in Yen) as market capitalisation. Apologies. It doesn't change the point, though. The point was that in a price-weighted index, a small handful of shares can account for the performance of the index.
This story was first published on June 5 for subscribers only but has now been opened for general readership.
By Greg PeelThe Dow rose 180 points, or 1.2%, while the S&P gained 1.5% to 1636 and the Nasdaq added 1.
More Australian miners are selling their mines as the prices of the yellow metal continues to decline in the world market. The latest to join the growing number of resources companies closing operations is Alacer Gold which would sell its Higginsville and South Kalgoorlie gold operations in Western Australia.
The Australian share market touched 2013 lows today, with the All Ordinaries Index (XAO) closing at its lowest level since 28th December 2012. Because of a sharp gain on the market on the first trading day of this year (2nd January), the market remains in positive territory year to date, up 0.4 per cent. The ASX 200 Index (XJO) is up 1 per cent year to date.
Newcrest Mining's problems are far from over. The mining company is facing a class action case filed by angry investors amidst allegations of withholding sensitive information.
The Australian share market is holding at lows for the year, following more falls on offshore markets overnight and despite a slight revision to Australia's unemployment rate.
- Stock held hostage by uncertain PHI market- Broker sentiment mixed- Growth to slow near term on uncertainty- Longer term prospects strongBy Andrew NelsonAt first look, private health insurer NIB Holdings ((NHF)) is a real head-scratcher.
By Marc Lichtenfeld, Investment U Senior AnalystI'm reading a fascinating book called the Emperor of All Maladies by Siddhartha Mukherjee.
By Greg PeelThe Dow closed down 126 points, or 0.8% to 14,995, the S&P fell 0.8% to 1612 and the Nasdaq lost 1.
The Australian share market fell to a five month low today, with selling virtually across the board. The only sector to finish firmer was the telecom service sector, support by defensive buying in Telstra (TLS).
At midday, the ASX 200 Index is down by around 0.7 per cent. Gains from the telcos are not enough to offset the much more substantial falls elsewhere. Losses from the banks and the miners are contributing most to the falls.
By Peter Switzer, Switzer Super ReportSo what gives with the US stock market, and how do we play it to get our investments in our market right?In my perfect world the US economic recovery starts producing over 200,000 jobs a month and that means the Federal Reserve starts to taper its $85 billion qu...
By Greg PeelThe Dow closed down 116 points, or 0.8%, while the S&P lost 1.0% to 1626 and the Nasdaq fell 1.
Australian flag carrier Qantas and 10 other air carriers got the 7-star rating for safety and product quality in a new airline ratings Web site, AirlineRatings.com.
The local index was a conspicuous improver in the region on Tuesday for the fact that almost all other bourses ended lower. Investors dodged a bullet at the weekend with the release of some reasonable US jobs data. The figures were able to reassure the markets that the US economy is still creating jobs at a reasonable pace without escalating concerns about the Feds QE retreat.
Several large shipments of genetically-modified (GM) corn and corn seeds originating from the U.S. have been destroyed by the Chinese government after being discovered by import officials at numerous locations across the country.
The Australian share market is slightly firmer at lunchtime in the East, following a mixed night on offshore markets.
