Seven Network Limited

Yesterday the Australian share market closed about 5% higher on its first trading day of November with good lead from Wall Street on last Friday and the expectation of another RBA interest rate cut. It was the share markets' fourth consecutive stronger day adding A$51 billion to the value of stocks.

Yesterday Australian shares closed higher for the first time in six days. At the close, the benchmark S&P/ASX200 share index was up 1.3%, or 51 points, to 3845.6, after earlier advancing more than 4.8%. Analysts said the market could continue to fall until a few basic fundamentals such as US housing sales, interbank lending, and commodity prices improve.

Overnight Wall Street closed more than 5% down on growing fears that the spiralling credit crisis would drag the US economy into a recession. While the global financial crisis deepened, RBA cut the interest rate by a full percentage point, double the amount that had been expected.

Yesterday the Australia share market surged more than 4% after the US government announced the $US700 billion ($840 billion) Wall Street bailout over the weekend, and the ban on short selling locally. Short-selling targets Macquarie Group(ASX:MQG) and Babcock and Brown(ASX:BNB) bounced strongly as market participants sought to unwind short positions and bought up stock.

Share markets around the world rebounded strongly on Friday as regulators took steps to shore up the financial system. The Australia sharemarket regained much of its losses last Friday, closing 4.3% higher, but still down 2% for the week.

The share market dropped almost 2% yesterday after Wall Street dropped 4% to its lowest close since the September 2001 terrorist attacks. A late rally among major banks and gains in resources stocks kept the local damage from the fall out from the Lehman Brothers collapse to a minimum. The losses were not as bad as expected but the combined losses of the past two days were significant.

The Australian market has received a mixed lead, with Wall Street up while oil, gold and silver were down again. Yesterday local banks finished mixed despite heavy losses on Wall Street as the US investment bank Lehman was thought facing difficulties. Analysts said the market was volatile, heavy and irrational.

Yesterday the Australian share market closed weaker on lower base metal prices and a profit downgrade by Lend Lease Corporation. The benchmark S&P/ASX200 index had fallen 16.3 points, or 0.33%, to 4887.7, while the broader All Ordinaries index lost 20.4 points, or 0.41%, to 4957.6.

The Australian share market opened higher today led by the financial sector and despite disappointing US economic growth data. US equities slumped on readings on jobs and manufacturing which indicated that businesses and workers still face a tough economy.

The Australian share market closed in the black again yesterday, driven by a stronger financial sector, but weaker resource stocks capped the gains. The benchmark S&P/ASX200 index was up 38.8 points or 0.76% to 5144.1, while the broader All Ordinaries gained 26.8 points or 0.52%, to 5188.4.