The Commonwealth Bank of Australia has unveiled a record $4.62 billion half-year profit, but warned weak consumer and business confidence levels are threatening the economy and has placed the problem squarely at the federal government's feet.
Wall Street stocks have rallied, with tech giant Apple hitting an all-time high and investors applauding encouraging earnings from Coca-Cola and other upbeat company news.
Commonwealth Bank of Australia's profit is expected to have hit a record of at least $4.5 billion in the first half of the financial year, as it rides the wave of a booming housing market.
The Australian sharemarket is trading lower and could be on its way to ending 12 straight sessions of gains, as investors react to sluggish Chinese trade figures and take profits.
Australia’s latest political crisis, the potential dumping next week of the prime minister, Tony Abbott, is masking a far greater threat to the country – a fresh outbreak of the GFC caused by the dramatic build-up of private and public debt.
All four of the major banks will pass on the Reserve Bank of Australia rate cut, though customers will have to wait at least another week for the cheaper rates to apply.
US stocks have given up late gains after the European Central Bank put fresh pressure on Athens by lifting its waiver on the use of Greek bonds as collateral.
The Australian dollar has recovered much of its losses suffered after plunging to near six-year lows following the Reserve Bank's decision to cut rates.
