Great start to the week - up 114 points and steaming ahead. Almost double the 59 points the SFE Futures had predicted this morning. In the last couple of weeks it seems to be either Resources or Financials that are up whilst the other is down. Today they are both up.
Inflation will dominate the week here in Australia.
What no one wanted a week ago, helped send the US market higher for the first time in six weeks last week, but oil's sharp 11%-plus fall was the major influence and shouldn't be under-estimated as having bolstered the market's confidence at the right time to allow nervy punters to move back into US financial stocks (and those in Australia for that matter, and Europe as well).
As expected, Qantas revealed its job and route cuts Friday and Virgin Blue hopped on the back of that news to delivery its second cut in services and costs.
The big question this week is whether oil continues to ease as it did for most of the past week.
Apart from the June quarter consumer price figures, Australian business and investment will again be dominated by events overseas and the local reaction to them.
The market is down 37. It was up a rather pathetic 4 at best. Pretty rum return for Australians following a 200 point rally in the US. Financials down 0.5% and resources still falling – down 1.2%. SFE Futures were up 37 this morning.
