Weekly summary
5 December 2008
The local market slipped 5.7% this week as investors mulled over a series of economic releases and further pain was felt in the resources sector as the majors continued to announce production cuts.
Offshore, the state of the US auto industry continued to dominate headlines while central banks in the UK and Euro Area cut interest rates by 1% and 0.75% respectively.
Miners worldwide announced a series of production cuts and culled staff to meet softening global demand for commodities. Locally, RIO faced ongoing selling pressure this week with debt levels at the heart of investor concern.
In economic news, the RBA slashed the cash rate by a further 1% to 4.25% while the Australian economy grew at 0.1% in the third quarter, the slowest rate recorded since 2000.
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