“The commodities boom is beginning to fray, with Australian coalminers unable to sell everything they dig up as China raises its own production and cuts back on imports,” David Uren reports for The Oz on ABARE’s latest analysis.
“The fall in coal exports – together with lower prices for oil and gas – have forced the Howard Government’s commodities forecaster to cut estimates for earnings from resources for the first time since the boom began three years ago.”
And do not miss Gary Dorsch’s detailed analysis of the meltdown in commodity prices this year.
There was a significant rally on the US bond market overnight (10-year bond yields now sit at 4.59% – down over 20 basis points in the past week) as more housing sector data reveals the depressed nature of the market and that it could have further to go.
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Existing home sales in August fell slightly, but were still down 13% for the year. However, this is not necessarily a reason for concern, as the negative year on year figure merely shows how strong the housing market was up until last summer (winter for us antipodeans) until the Fed’s interest rate hikes started kicking in. Read more in World Economy.
And read more at Henry Thornton.