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.
The Government plans to freeze for 2010/11 and 2011/12 the indexation
applied on the income threshold above which the maximum superannuation
co-contribution begins to phase down.
The maximum co-contribution of $1,000 is reduced by 3.333 cents for
every dollar that a taxpayer’s total income exceeds $31,920 until it
reaches or exceeds $61,920.
Comment:
Effectively this measure will freeze these thresholds at $31,920 and
$61,920 for the next two financial years (i.e. 2010-11 and 2011-12).
The matching rate of 100 per cent and the maximum co-contribution that is payable on an individual’s eligible personal non-concessional contribution of $1,000 is proposed to be permanently retained.
Comment
Under announcements made in the 2009 Budget the co-contribution matching
rate was to be reduced from 150% to 100% before being increased to 125%
and then back to 150%. Under the 2010 Budget announcement this planned
increase will not proceed and the maximum rate of co-contribution will
be capped at $1000.
The Government has proposed to increase the benchmark interest rate that applies to capital protected borrowings to the Reserve Bank of Australia (RBA) indicator rate for standard variable housing loans plus 100 basis points. Prior to this announcement the benchmark interest rate was set at the RBA indicator rate for standard variable housing loans.
In accordance with the tax cuts announced in the 2008 budget, the personal income tax thresholds for the 2010- 2011 year will be as follows: