Good afternoon, The Australian sharemarket extended its gains for a third day after the Reserve Bank left rates on hold. The S&P/ASX 200 index rose 0.5 per cent to 7,279 points on Tuesday, with heavyweight financial stocks leading the gains, up more than 1 per cent. Property and energy stocks also found strong support among investors. Reserve Bank governor Philip Lowe has held rates at 4.1 per cent and flagged the most aggressive policy tightening in a generation is closer to an end, saying the need for further hikes would depend on “how the economy and inflation evolve”. Unless there is a change in world central bank sentiment, the Reserve Bank will have to keep lifting rates if inflation remains high or risk having the Australian dollar trashed, writes Robert Gottliebsen. Mortgage stress is rising to levels not seen since the GFC, and potential further interest rate increases from the Reserve Bank later this year would put 94,000 more borrowers more at risk, according to researchers at Roy Morgan. The new owner of PwC’s government consulting arm believes the business model that underpin the big four audit firms is riddled with conflicts. Politicians and the public are demanding for something to change. This means it is ready for disruption. Federal energy Minister Chris Bowen will release the full text of the mandatory code of conduct governing the country’s gas industry within days, a document that will go a long way to determining whether several new developments materialise. |