23 Nov 2009
The Reserve Bank of Australia should continue to lead the world in raising interest rates as Australia’s economic growth outpaces most other countries, the Organisation for Economic Cooperation and Development (OECD) said in its semi-annual economic outlook released last Thursday in Paris. The OECD forecast the Australian economy to expand by 2.4% in 2010 and 3.5% in 2011. The OECD also indicated that the Australian Government should begin reducing stimulus spending by 2011.
Mortgage borrowers in the United States are falling behind on their payments in record numbers. 9.64% of all mortgage loans were delinquent in the September quarter up from 9.24% in the June quarter, according to the Mortgage Bankers Association; this represents 4.5 million borrowers. Increasing job losses are largely responsible for the increase in delinquencies.
The ASX 200 finished the week on 4685.8 points, down less than 0.5%. There were negative movements across most sectors, with the most significant loss being in Information Technology, down 4.38%, and Listed Property Trusts, down 2.67%. Positive movements occurred in Gold, up 4.36%, and Metals and Mining, up 2.78%.
US equities experienced a modest gain, with the Dow Jones ending the week in positive territory on 10,318.16 points, up 47.69 points or 0.5%. The S&P 500 finished the week on 1,091.38 points, down only 2.1 points or 0.2%.
The Australian dollar lost a little ground against the US dollar, finishing the week at 91.47 US cents, or down 1.96%. Gold prices rose again this week, finishing at $1,150.6 US an ounce, up 2.85%. Oil prices also showed an increase, finishing the week at $77.47 US a barrel, up 0.57%.