Australia's inflation outlook leaves room for another cash rate cut, the Reserve Bank of Australia (RBA) says, but only if demand conditions were to wind back significantly.
The Australian share market opened flat this morning, with stocks moving slightly up or down, as investors awaited the outcome of the euro zone finance ministers' meeting in Brussels.
European shares closed at a near seven-month high on Monday as euro zone finance ministers edged closer to a long-awaited agreement on a rescue package for Greece.
The Australian dollar was unmoved from its last close today, ignoring positive developments in China because of uncertainty ahead of a key euro zone meeting to resolve Greece's debt crisis.
The Australian share market rallied over one per cent on a raft of corporate earnings results and the likelihood of euro zone finance ministers approving another bailout for Greece.
Australian stocks have opened more than one per cent higher, as firmer oil prices and a relaxing of banking requirements in China fuelled a rally in the resources and energy sectors.
European stock markets closed higher on Friday as investors took heart from the latest comments on the Greek debt crisis and positive US economic data, analysts said.
The Australian share market has opened stronger, with investors bouyed by further signs the US economy is recovering and renewed hopes the Greek bailout deal will go ahead.
The Australian dollar has risen almost one US cent on further signs the American economy is recovering and renewed hopes the Greek bailout deal will go ahead.
The Australian share market was dragged lower by renewed concerns that Greece is heading towards default and a weak lead from Wall Street while lower commodity prices weighed on mining stocks.
Stronger than expected jobs data has helped the Australian dollar to recover ground lost over concerns some European Union countries may be willing to let Greece default on its debt.
Commonwealth Bank of Australia's (CBA) first-half cash profit has grown by seven per cent to $3.57 billion and the company has no plans for major job cuts.
US stocks were weighed down by unravelling debt talks in Europe and didn't get any help from a disappointing result on retail sales. The three major stock indexes were lower all day.
Moody's downgrades of debt ratings of Italy, Spain and Portugal and, locally, softer commodity prices dragged the Australian share market almost one per cent lower.
The Reserve Bank of Australia has backed claims by major lenders that their cost of borrowing has risen drastically in the wake of Europe's sovereign debt crisis.
There is no law against providing lousy financial advice, but there ought to be, and the first person investigated should be the man in charge of Australia’s finances, Wayne Swan.
