James Kong

Risk is back in fashion. Global share markets have entered a patch of blue sky on the back of sunnier economic reports from around the world.

U.S. stocks rallied Wednesday, with Bank of America, Caterpillar and J.P. Morgan Chase leading broad gains in a strong start to September after manufacturing data topped expectations.

On Wall St overnight, stocks surged the most since May as manufacturing data in both the US and China bolstered optimism as to the state of the US economy.

The AUD has put in a very strong performance over the last 24 hours. The rally initially began yesterday morning ahead of the release of the Q2 GDP number.

The US ISM manufacturing index surprisingly rose from 55.5 to 56.3 in August. Economists had tipped a fall to 53.0. Construction spending fell by 1.0pct in July, against forecasts for a 0.5pct decline.

The Australian Dollar opens higher today against its U.S. counterpart at 0.9095 after strong economic data releases in Australia and China on Wednesday.

In the US overnight, the major indices finished largely unchanged as stronger-than-expected consumer confidence and a rise in home prices helped ease fears that the economy is faltering. Financials were helped by regulatory approval for a Chinese investment in Morgan Stanley.

The Australian Dollar has opened fairly unchanged this morning to be trading at USD0.8920 after trading below USD0.8900 late yesterday.

US consumer confidence rose from 51.0 to 53.5 in August, above expectations for a result near 50.5. The S&P/Case Shiller home price index for 20 metropolitan areas showed a 0.3pct rose in seasonally adjusted terms in June, above forecasts for a 0.2pct gain. But the Chicago purchasing managers index eased from 62.3 to 56.7 in August.

U.S. stocks eked out a tiny advance Tuesday, with AT&T, J.P. Morgan and Merck among the gainers in the conclusion of a bruising month for the market.

Australian economic data released yesterday surprised the market somewhat with Retail Sales, Building Approvals and the Current Account all coming in above expectations.

On Wall St overnight, US markets gave up most of the points gained during Friday session as stronger-than-expected consumer spending data did little to overshadow a weaker-than-expected rise in personal incomes and the first drop in disposable income since January.

With the AUD trading just bellow USD0.9000 for the majority of yesterday's local trading session, the AUD has fallen about a cent overnight as concerns over the US economy resurfaced after a very short term period of renewed confidence.

US consumer spending rose by 0.4pct in July - marking the strongest reading in four months. US personal income rose by 0.2 pct in July after edging up 0.1pct in June.

U.S. stocks fell Monday despite deal activity from Intel and 3M as investors continued to fret about the health of the economy. The drop came in thin trading.

The Australian Dollar moved above US90 cents for the first time in over a week as sentiment was buoyed by recent comments from the US Federal Reserve that it is prepared to take steps to safeguard the world's largest economy from falling back into recession.

The local market welcomed what Ben Bernanke, chairman of the US Federal Reserve, said over the weekend that he will do whatever it takes to boost the US economy. His statement proved to be the positive impetus for Wall Street, which rallied strongly on the weekend.

Where do you draw the line between cheap and nasty and great value for money?

The Australian Dollar surged following comments from Federal Reserve Chairman Governor Bernanke in a keynote speech to global central bankers lifted market sentiment on Friday night.

The US economy grew at a 1.6pct annual pace in the June quarter, down from the original estimate of 2.4pct. Economists had tipped a result near 1.3pct. US consumer sentiment rose from 67.8 to 68.9 in August, short of forecasts near 69.6.

U.S. stocks climbed Friday, with DuPont, Alcoa and Caterpillar leading broad gains. Investors took comfort in Federal Reserve Chairman Ben Bernanke's promise to do what it takes to support an economic recovery, along with a better than feared revision of second quarter economic growth.

The Australian Dollar is stronger across the board today and moved sharply higher against the greenback late in the offshore session on Friday.

US markets put in a good session to close the week out on Friday as Federal Reserve Chairman Ben Bernanke eased market concerns by saying the Fed was willing to do whatever it takes to stabilise the recovery. A better-than-expected reading on Q2 GDP also had the markets in a good mood.

Australian share market closed moderately higher, building on Thursday's positive performance, ahead of the release of revised US June quarter growth figures later tonight.

The Australian share market turned around in afternoon trade, to post another session of gains.

Across Asia, regional markets are mixed following weaker overseas leads and ahead of tonight's Q2 GDP read and Bernanke's economic speech. The Nikkei 225 is the best performer, up 1% while the Hang Seng, Kospi and Shanghai composite were all hovering around the flat line.

US jobless claims fell 31k to 473k in the past week. Those people remaining on unemployment benefits after drawing an initial week of aid fell 62k to 4.46 million.

Blue chip stocks fell Thursday, with declines in Cisco Systems, International Business Machines and J.P. Morgan Chase pushing the Dow Jones Industrial Average below the psychologically important 10000 mark on continued worries about economic growth.

The Conference Board Leading Economic Index for Australia rose 0.1% in June 2010 however private capital expenditure unexpectedly fell -4% from the previous quarter causing the Aussie to dip momentarily to 0.8830 US Dollars midday in Asia