Market Updates 13.9.2011

Australia business confidence slumps Australian business confidence plunged last month to the lowest level since April 2009 as a rout in global equity markets and concern about contagion from Europe’s debt crisis damaged sentiment, a private survey showed. The confidence index slumped to minus 8 in August from 2 in July, according to a National Australia Bank Ltd. (NAB) survey. The business conditions gauge, a measure of hiring, sales and profits, slid to minus 3 from minus 1. Australia’s currency and benchmark stock index dropped last month and the MSCI World (MXWO) Index of equities sank 7.3 percent as concern increased that the Greek fiscal crisis would drag down other euro-area economies. The result reflects “heightened global uncertainty, large falls in equity markets and the fear of debt market contagion,” NAB Chief Economist Alan Oster said in a statement. “That said, confidence levels remain significantly above global financial crisis or recessionary lows. Clearly, much depends on how activity holds up.”