Articles

A stress test of Australia's 20 largest banks under a scenario of a severe economic downturn shows the banking system would remain resilient with no banks failing, Australian Prudential Regulatory Authority Chairman John Laker said.

Consumer sentiment dropped significantly for a second straight month in June, providing more evidence the RBA may remain on hold for the time being.

For June, an index of consumer sentiment fell 5.7% from May, following a 7% drop the month before. The index fell to 101.9 points in June in seasonally adjusted terms from 108.0 points in May, compilers Westpac and the Melbourne Institute said.

Standing out in the report were concerns about international economic conditions, which registered the worst reading since the end of the global financial crisis. 

A wide range of US stocks, including DuPont, Bank of America and Exxon Mobil, climbed on Tuesday, indicating increased confidence in the US economy, although continued worries about the European economy kept the gains in check.

Sales and profit expectations among businesses for the third quarter 2010 declined slightly in the past month, according to an industry survey.

In the second round of its third-quarter survey of 1,200 business owners, the Dun & Bradstreet National Business Expectations Survey had a sales expectations index of 23, down from a preliminary index reading of 28 given early last month. For the second quarter, the index reading was 33. 

US stocks fell on Monday, with Bank of America, Caterpillar and Alcoa among the decliners as investors continued to worry about European sovereign debt while data on US consumer spending also sparked concerns about the economic recovery.

The Dow Jones Industrial Average fell 115.48 points (1.16%) to 9,816.49, its lowest close since Nov. 4. The Dow is now below the intraday low it hit during the May 5 "flash crash."

Construction activity expanded for the third straight month in May, albeit at a slower pace as operating conditions became more difficult, according to a survey of the sector.

The Australian Industry Group/Housing Industry Association Performance of construction Index was 53.2 in May, down 2.6 points from April, but still above the 50-point level indicating an expansion in activity. House building experienced the strongest conditions, with a rise in new orders and increased investor activity.

The total number of job advertisements in newspapers and on the internet rose 4.3% in seasonally adjusted terms in May compared with April to an average of 167,633 ads per week, contributing to a 21.7% annual increase, ANZ said.

The number of Internet job advertisements rose 5% in May from April, contributing to an annual increase of 22.3% in seasonally adjusted terms. But job advertisements in newspapers fell 6.5% over the same period, contributing to a 13.2% annual increase in seasonally adjusted terms. 

US stocks tumbled broadly Friday, with Caterpillar, American Express and Boeing among the decliners following a disappointing report on US jobs and as Hungary emerged as Europe's latest economic problem.

The Dow Jones Industrial Average fell 323.31 points (3.15%) to 9,931.97, its lowest close since Feb. 8. All of its components were in the red Friday. For the week, the measure declined 2.02%.

Beef exports jumped 15% on month in May to a 14-month high of 85,762 boneless tonnes, partly reflecting strong growth in exports to the US and Russia, according to Meat & Livestock Australia.

Exports in May rose 3.5% on year, assisted by an increase in cattle slaughter since late April and a sharp weakening in the Australian dollar during the month. Beef shipments in May took total exports in the first five months of the year to 348,883 tonnes, down 9% on the year-earlier period. 

US stocks rose slightly on Thursday, led by technology companies including Cisco Systems and Microsoft and energy companies such as Exxon Mobil, as investors edged their way back toward riskier areas of the market.

The Dow Jones Industrial Average eked out a gain of 5.74 points (0.06%) to 10,255.28, the measure's second consecutive gain. It was the Dow's first two-day gain since late April.