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Date Published : Tuesday, January 29, 2008
The recent turmoil in the world stock markets, which wiped billions of dollars off the values of superannuation policies, may not yet be over, industry experts have stated.
Last week, superannuation funds and the values of Australia's biggest companies were affected by a global stock market slump. The slump ended when the US Federal Reserve cut interest rates by 0.75 per cent.
However, since then, markets around the world - including Australia's All Ordinaries and the ASX - have fluctuated, causing analysts to fear a global recession, which would affect consumers throughout Australia.
Merrill Lynch's chief executive John Thain told the Sydney Morning Herald: "It will be a while before you see a return of normalcy in banking and markets."
Finance experts, including many from the Australian sector, have expressed their fears over a rocky 2008 for the economy at the World Economic Forum in Davos, Switzerland.
Any further downturns in the economy could affect savings accounts, home loans and credit card bills, as well as super funds.
Last week, Australian treasurer Wayne Swan said that he feels the nation is in good stead to survive the turmoil.
He said in a statement: "We are well placed to ride out the turbulence that flows from events in the US even though we are not immune from it."
Since then, one possible reason for the downturn has been uncovered in France, after Societe General trader Jerome Kerviel was alleged to have lost 4.9 billion euros ($8.15 billion) during trading.
Australian accounts compared and reviewed.
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Australia's economy is in a healthy enough state to see it make it through the global downturn in one piece.
- Australia to weather the storm, says IMF
Australia's economy is in a healthy enough state to see it make it through the global downturn in one piece.
- Public and government 'confident in face of global economic turmoil'
As the global economy takes a battering, Australians could be forgiven for fearing the worst when it comes to their own nation's money matters.
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As the global economy takes a battering, Australians could be forgiven for fearing the worst when it comes to their own nation's money matters.
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Many mortgage and loan customers might be paying attention next month to see what decision the Reserve Bank of Australia makes on the interest rate.
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There could be a greater level of investment in residential mortgages in Australia, if the federal treasurer gets his way.
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- Australia to weather the storm, says IMF
Australia's economy is in a healthy enough state to see it make it through the global downturn in one piece.
- Australia to weather the storm, says IMF
Australia's economy is in a healthy enough state to see it make it through the global downturn in one piece.
- Public and government 'confident in face of global economic turmoil'
As the global economy takes a battering, Australians could be forgiven for fearing the worst when it comes to their own nation's money matters.
- Public and government 'confident in face of global economic turmoil'
As the global economy takes a battering, Australians could be forgiven for fearing the worst when it comes to their own nation's money matters.
- PM warns crisis is 'far from over'
Prime minister Kevin Rudd has warned the country that the global financial crisis still has a long way to go before it is over, it has emerged.
