Good afternoon,

Australia's sharemarket erased most of the previous day's rise as bond yields jumped on stronger-than-expected US economic data and a Bank of Japan policy tweak. In its worst day in three weeks, the S&P/ASX 200 index closed on Friday down 0.7 per cent at 7403.6 points after hitting a three-day low of 7356.4.

Falls were broad based with property, materials and discretionary underperforming and only utilities closing in the green.

Big banks, miners, property trusts and retail were the main drags on the bourse. Fortescue, CBA, Goodman and Wesfarmers fell between 1.1 and 5.4 per cent.

The BoJ has kept its policy targets but said it would allow greater flexibility on its 10-year Japanese Government Bond target of zero per cent, by offering to buy JGB's daily at 1.0 per cent rather than 0.5 per cent previously.

Australia's 10-year bond yield soared 16.5 basis points to 4.09 per cent and the three-year bond yield rose 10 basis points to 3.90 per cent. There was only a brief dip after the June retail trade fell 0.8 per cent against expectations of no change, leading several economists to push out their previous forecasts from August to the December quarter.

The Markets

The Inner Sanctum

Since 1920 Marr cranes have worked on many important projects that have shaped Sydney and the nation from their crane yard at Sefton in western Sydney.

Known as The Men from Marrs, they set up a crown in Martin Place for the Queen’s Coronation in the 1950s, assisted in the clean-up of the Granville train disaster in the 1970s, were involved in the construction of Sydney Opera House in the 1960s and, most recently, Crown Sydney.

Over the past 15 years they have diversified into the resource sector and in 2008 entered their first overseas market, Qatar. They now have projects in Europe, the Middle East and the UK. But can they pull off a remarkable fourth generation?

Damon Kitney

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