AAP

A potential worsening crisis in Europe is the biggest challenge facing Australia, but it's not as vulnerable as many other countries, a global agency says.

Australia captain Michael Clarke won the toss and chose to bat first on Friday in the first Test against Sri Lanka at Bellerive Oval.

Prime Minister Julia Gillard has dismissed a call from one of her senior MPs to give up on Labor's commitment to a budget surplus.

Australian stocks have opened firmer, as local market players looked past a weak lead from Wall Street.

Australand has rejected an offer from fellow property company GPT Group for its commercial and industrial and investment property portfolio.

US stocks closed lower Thursday under a cloud of fiscal cliff concerns that overshadowed a batch of somewhat positive economic data on jobs, retail sales and inflation.

The Australian dollar has risen after the US central bank announced it would extend its bond buying program, in order to ease lending rates and stimulate spending.

US food processing giant Archer Daniels Midland (ADM) has had its second takeover knockback from Australia's GrainCorp in a month.

Australian stocks have closed flat after a directionless day's trade, with gains among the big miners offset by weakness in the consumer staples sector.

The Australian dollar has become the Stephen Bradbury of currency markets - `winning' by default because all its rivals fell in a heap.

Federal Treasury has dismissed suggestions the Chinese economic "miracle" is coming to an end, saying the Asian giant will grow at a more sustainable rate to become the biggest economy in the world

Australian retailers may be doing it hard, but they are fighting back with a new industry group designed to lobby governments on a range of issues affecting the struggling sector.

The Reserve Bank's interest rate should be cut in the new year to boost ailing consumer and business confidence, Westpac chief executive Gail Kelly says.

Economists believe the federal government can ditch its much promised budget surplus without damaging its triple-A credit rating.

A former top state government official has been fined $1500 after being found guilty of disclosing confidential government information to former premier turned lobbyist Brian Burke.

 Lower interest rates have yet to give a noticeable boost to a manufacturing sector that remains plagued by a high Australian dollar, a new survey suggests.

The head of National Australia Bank has called for an overhaul of Australia's industrial relations and taxation systems as the resources investment boom nears its peak.

Shares in Iluka Resources fell by nearly six per cent on the ASX today after it said sales volumes to the end of November were at the bottom end of guidance.

Westpac does not expect conditions in the banking sector to improve any time soon, but says it is in good shape to deliver sound returns for shareholders.

The Australian market has opened flat after Wall Street fell in response to comments from US Federal Reserve chairman Ben Bernanke that there was nothing he could do if the US fell off the "fiscal

Australian retailers are dreaming of a bright Christmas with economists predicting the best festive season spending in three years.

US stocks closed mostly flat on Wednesday after Federal Reserve Chairman Ben Bernanke warned politicians to reach a deal to avoid sending economy over the fiscal cliff.

The Australian dollar is half a US cent higher ahead of a crucial announcement on economic stimulus by the US central bank.

Aquila Resources has announced it will begin arbitration with joint venture partner AMCI for its West Pilbara Iron Ore Project in February.

Reserve Bank of Australia governor Glenn Stevens wonders whether there might be a better way of using monetary policy than the so-called "quantitative easing" of monetary policy being used by major

The Australian share market closed at its highest level in one and a half years as investors piled into mining stocks following strong gains overseas.

The Australian retail sector continues to struggle due to declining profit margins and skyrocketing costs, a report says.

The state Australian government has denied there is an endemic problem in local councils after another was suspended, prompting the opposition to again call for an inquiry.

Australian property prices are tipped to rise in 2013 as increased affordability and interest rate cuts encourage buyers into the market.

Severe thunderstorms are forecast for Perth suburbs and the southern corner of the state today, potentially causing flash flooding in some areas.

Australian consumers are downbeat heading into Christmas, despite the Reserve Bank of Australia's decision to cut the cash rate to its lowest level in three years.

Coca-Cola Amatil says trading conditions in Australia have picked up in the lead-up to Christmas as the beverage group forecasts a lift in profit and revenue for 2012.