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Teen shot dead in city shop

7.08.2008
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Raymond Penfold, the king of property spruikers trying to talk up real estate again, difference is that in 2001 interest rates were at record lows, now they are at highs and going to increase again next month, dont listen to his dribble folks, prices are set to fall as E Karan predicted.

Posted by: A withers 9:24am today

Sell my shares now that they've lost value to buy property at the all time height of the real estate bubble in Australia?

Posted by: what now? of Melbourne 9:21am today

to you all financial illiterate out there, cut the Aus politics out of this.Don't you start going about property price going to fall also.This is about global melt down, US Fed's response by big cut, recession fear.I think you should fear for your saving and job security first.

Posted by: kevin 9:21am today

Mark of Adelaide...spot on brother!

Posted by: Malcom of sydney 9:19am today
Read all 38 comments

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AUSTRALIAN shares have rallied today after the US central bank overnight slashed a key interest rate by 75 basis points, the biggest cut in more than 23 years, ending a global stocks rout sparked by fears of a US recession.

The emergency cut by the US Federal Reserve is an attempt to stop world stock markets from freefalling, after shock drops in Asian and Australian stock markets yesterday wiped billions from investors` savings, with $110 billion lost in Australia alone.

The local market had its worst day in almost 20 years, plunging over 7 per cent as investors panicked in the face of a looming US recession. 

The benchmark S&P/ASX200 index suffered its biggest one day drop since October 28, 1997, falling 7.05 per cent to 5186.8 points, one of the biggest on global markets.

The broader All Ordinaries index fell 7.26 per cent to 5222 points. Panic, risk aversion and, increasingly, lenders` margin calls were behind the drop.

But overnight, a futures indicator of trade on the Australian share market was up almost 200 points, indicating the local stock market was set to recover about half of yesterday`s losses in trade today.

The Australian dollar was also higher early today, trading around US87 cents, up from below US86 cents yesterday.

Treasurer Wayne Swan today said the Australian economy was "well placed" to handle global financial volatility. "The fundamentals of the Australian economy are good in the long term," he said, indicating he expected Australia to withstand the US crisis.

Emergency cut

The move by the US Fed, an emergency cut one week ahead of a scheduled meeting, could boost the local share market today, with European markets overnight all responding positively to the move.

London`s FTSE 100 index of leading shares closed 2.90 per cent higher at 5740.10 points and the Paris CAC 40 index closed 2.07 per cent higher at 4842.54 points. The Frankfurt DAX ended the day 0.31 per cent lower at 6769.47 points after a sharper plunge yesterday.

US stocks fell but averted a meltdown, with the Dow Jones Industrial Average closing down 1.06 per cent to 11,971.19, the tech-heavy Nasdaq down 2.04 per cent to 2292.27 and the broad-market Standard & Poor`s 500 index falling 1.11 per cent to close at 1310.50.

With Reuters and AFP

Nicki Bourlioufas is the business editor of NEWS.com.au

NEWS.com.au is not responsible for the content of external sites.

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Today`s Top Picks



Font size: +-

Send this article:PrintEmail

Have Your Say

Latest Comments:

Raymond Penfold, the king of property spruikers trying to talk up real estate again, difference is that in 2001 interest rates were at record lows, now they are at highs and going to increase again next month, dont listen to his dribble folks, prices are set to fall as E Karan predicted.

Posted by: A withers 9:24am today

Sell my shares now that they've lost value to buy property at the all time height of the real estate bubble in Australia?

Posted by: what now? of Melbourne 9:21am today

to you all financial illiterate out there, cut the Aus politics out of this.Don't you start going about property price going to fall also.This is about global melt down, US Fed's response by big cut, recession fear.I think you should fear for your saving and job security first.

Posted by: kevin 9:21am today

Mark of Adelaide...spot on brother!

Posted by: Malcom of sydney 9:19am today
Read all 38 comments

We welcome your comments on this story. Comments are submitted for possible publication on the condition that they may be edited. Please provide your full name. We also require a working email address - not for publication, but for verification. The location field is optional.Read our publication guidelines.

Submit your feedback here:

(So you don`t have to retype your details each timeyou send feedback.)

Video

Advertisement

Love & Relationships - Find a date near you on Match.com - # 1 Online Dating site Worldwide.
 
Virgin Mobile Cheap calls & text across Australia.
 
Earn a big 7.00%p.a. With directsaver, the online savings account from St.George
 
Win return flights to London. Enter now to win two return flights to London courtesy of British Airways
 
Low Fee and $50 credit Get a Credit Card with a credit bonus.
 
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