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Market Update

Australian Rate Increase Heard 'Round the World

Equity markets were up strongly this week on Australia's interest rate increase and optimism about third-quarter earnings.

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U.S. equity markets were up strongly this week on Australia's interest rate increase and optimism about third-quarter earnings. Bond prices were up most of the week, then took a dive at the end following Fed remarks. In commodity markets there was a bit of role reversal as recent performers such as sugar saw prices ebb while laggards like hogs and wheat enjoyed some upside.

The Morningstar US Market Index rose nearly 5% this week. The interest rate increase by Australia's central bank gave many investors reason to think the worst of the global financial crisis may be over.

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Rod Bare does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.