Shares

The continuing Fukushima nuclear crisis is proving to be a greater threat to the health of the Japanese economy than the impact of the March 11 quake and tsunami.

The US dollar became the story last week, falling as the euro defied gravity and the doubts about Greece and the eurozone’s financial health to end higher, sending some commodities lower on the day.

In Australia, the week will be dominated by the run up to the first quarter GDP figures on Wednesday, along with data for retail sales, building approvals and the trade for April.

Thanks to the stronger US dollar, commodities enjoyed a generally firmer day on Friday.

The AMP’s chief economist, Dr Shane Oliver wonders if we are back in 2010. 

There’s a strong message for Australia and investors from the latest half yearly review of the world economy from the Organisation for Economic Co-Operation and Development (OECD).

Do you want the bad news, or the good news about the latest private investment figures?

As expected Japan’s trade surplus disappeared in April as the full impact of the lost production from the March 11 quake, tsunami and the subsequent nuclear crisis at Fukushima hit the economy hard.

Gee, what’s Goldman Sachs on about?

Investors would do better to worry about the continuing drought in central and southern China than another dip in a key manufacturing index for May.

Markets across Asia sold off yesterday with financial and big miners taking a whack from nervous investors.

Markets across the globe racked up big losses yesterday and overnight.

Did we see the eurozone financial crisis step up a notch late on Saturday?

US stocks closed broadly lower for a third straight week last on emerging signs that US consumer demand may be weakening.

Global and more importantly, Chinese steel production continues to run at near record pace.

New York gold futures regained the $US1,500-an-ounce mark on Friday for the first time in a week thanks to those renewed fears about Greece’s financial state and differences in Europe over its new rescue.

This week we start the run up to the national accounts for the March quarter in Australia to be released next week which are likely to show negative growth in the March quarter, thanks to the impact of flooding in Queensland and Victoria in January and February.

The AMP’s chief economist, Dr Shane Oliver says a June rate hike by the Reserve Bank would be dangerous with house prices soft, consumer spending weak and low levels of confidence regarding family finances. Households are already struggling and these are good reasons for the RBA to tread cautiously.

As expected, the Japanese economy fell into recession in the first quarter when economic growth contracted thanks to the devastating impact of the March 11 earthquake, tsunami and then the Fukushima nuclear crisis that still hasn’t been controlled, more than two months later.

New Zealand has staved off an immediate credit rating downgrade by producing a budget which forecasts a return to surplus one year earlier than previous forecast, despite the multi-billion dollar cost of the September 4 and February 22 quakes which badly damaged Christchurch. 

Wages growth eased a touch in the March quarter and consumer confidence dipped to an 11 month low, according to figures out yesterday, so what will the Reserve Bank say or do?