US stocks fell broadly on Tuesday, with American Express, Boeing and Intel among the decliners as jitters intensified over Europe's ability to control a debt crisis. The Dow Jones Industrial Average fell 114.88 points (1.08%) to 10,510.95, its lowest close since May 7.
Australian interest rates are "well placed for the present" according to the RBA, after it tightened policy earlier this month to offset inflationary pressures from a resources boom, according to central bank minutes from its May 4 Policy Meeting. It reiterated that if lenders responded to the rise in interest rates as expected "interest rates faced by most borrowers would then be at around their average levels over the past decade".
US stocks edged up, led by consumer stocks such as Kraft Foods and Procter & Gamble. But continued concerns about the euro zone sent investors away from industrial companies dependent on global growth, including Caterpillar, along with energy and materials stocks.
The value of personal finance arranged in March fell 1.3% after seasonal adjustment from February to $6.87bn, the Australian Bureau of Statistics said. The decline in personal finance comprised a 1.6% fall in revolving credit and a 1.1% fall in fixed lending. Commercial finance rose 1.1% in March in seasonally adjusted terms from February to $28.4bn.
A rise of 18% in revolving credit for commercial finance was accompanied by a fall of 5.5% in fixed-lending commitments. Lease finance increased by 5.8% in March after seasonal adjustment to $388m.
US stocks sank on Friday as concerns over European debt and the advance of financial overhaul legislation sent investors scuttling away from American Express, Visa and MasterCard.
The Dow Jones Industrial Average fell 162.79 points (1.51%) to 10,620.16. Still, the measure ended up 2.31% over the week, its biggest point and percentage gain since the week that ended March 5.
US stocks fell on Thursday, led by the consumer-discretionary sector as earnings guidance and results from retailers Kohl's and Urban Outfitters disappointed. In addition, a forecast from Cisco Systems failed to improve investor sentiment toward technology.
The labour market remained strong in April, with a further 33,700 jobs created in the month. The number of new jobs created in the economy since August 2009 now exceeds 250,000.
Unemployment was steady at a higher-than-expected seasonally adjusted 5.4% in April from a revised 5.4% in March, the Australian Bureau of Statistics said.
The number of people in full-time work rose 37,500, while the number in part-time work fell 3,900. The seasonally adjusted workforce participation rate remained at 65.2% in April.US stocks climbed on Wednesday as a strong earnings forecast from International Business Machines lifted the technology sector while companies that benefit from global growth, including DuPont and Caterpillar, rose following reports of better-than-expected economic growth in the euro zone.
Housing finance approvals fell for the eighth time in nine months in March.
The number of housing-finance approvals fell a seasonally adjusted 3.4% in March from February, the Australian Bureau of Statistics said. The ABS said the number of finance approvals to build houses fell a seasonally adjusted 7.3% in March from February and the number of approvals to buy newly built houses fell 3.2%.
The number of approvals for the purchase of established houses decreased 2.9%.The Child Care Rebate will be capped at $7,500 per child (2008-09 level) from the current annual cap of $7,778 per child. Also indexation of the cap will be paused for four years from 1 July 2010. The out-of-pocket reimbursement of child care expenses will remain at 50 per cent up to the annual cap.