One of the world's largest credit agencies has warned Australia's states and territories to watch their persistent budget deficits and rising debt levels.
The Australian stock market opened stronger this morning, with a strong earnings report from the Commonwealth Bank giving the market a boost in the early session of trading.
US stocks gave up early gains helped by a better-than-expected reading on retail sales and closed flat, with the Dow held up by a strong performance from Home Depot.
National Australia Bank made a $1.2 billion profit in the three months to June, while its revenue dropped because of higher funding costs and weak financial markets.
US stock markets closed mainly in the red after listless trade, with only poor Japanese data making a dent in action slowed by the northern hemisphere summer holiday.
The Australian dollar is slightly higher in quiet trade after the People's Bank of China (PBOC) failed to announce measures to stimulate the nation's slowing economy.
US stocks shrugged off mixed corporate results and eurozone worries to hold onto their gains on Friday, with the main indexes all ending higher for the week despite little concrete positive news.
The Australian sharemarket ended the week on a negative note following the release of disappointing Chinese trade data which signalled further weakness in the global economy.
The Commonwealth Bank of Australia says its acquisition of BankWest saved the Australian economy from a major financial shock during the global downturn.
Australian shares opened slightly higher as the resources sector posts gains after Rio Tinto predicted China would have a quick recovery in its pace of growth.
The Australian dollar is slightly lower ahead of key jobs data.At 1700 AEST, the local unit was trading at 105.45 US cents, down from 105.76 cents yesterday.
A senior Treasury official says Australia's banking system is going through a transition period in the aftermath of the 2008-2009 global financial crisis.
