insto - Australian financial markets

Rabobank has increased A$75 million of its 5.5 per cent 3 year EMTN issue launched on 14 July 2009. The total outstanding amount is now A$850 million.

US stocks snapped a four day losing streak, trading higher ahead of Friday’s key monthly unemployment report.

The S&P500 closed up 0.9 per cent driven by a 2 per cent gain in financials. Two of the markets most actively traded stocks, Citi and AIG both traded sharply higher.

Economic data was mixed. The US non-manufacturing sector still contracted but by less than forecast while August retail sales were seen as positive. Jobs data however disappointed with continuing job claims rising as laid off workers struggle to find new work.

Rabobank Nederland, New Zealand Branch, rated AAA/Aaa, successfully closed its 6.32 per cent September 2014 retail bond issue on Friday 21 August 2009.

The offer of up to NZ$100 million opened on Monday 17 August and was significantly oversubscribed, pricing at the tighter end of the indicative margin range of 94 to 99 basis points. semi-annual.

The coupon rate / issue yield was set on Friday 21 August 2009 at 6.32 per cent per annum (paid semi-annually) . This represents an issue margin of 94 basis points over the benchmark mid-swap rate.

US stocks stalled at their year highs as investors took profits following the positive payrolls reading on Friday.

The US Federal Reserve meets on Wednesday and is expected to maintain its target rate of zero to 0.25 per cent. Markets howeveer will be paying close attention to the Fed’s statement on the economy for any changes in their assessments.

It was a busy and significant night week Australian issuers in offshore debt markets as Macquarie Group and CBA ventured into non-guaranteed waters.

While Australian banks are being urged to ease themselves off the wholesale guarantee scheme, CBA went one better overnight issuing lower down the capital structure.

Global equity markets made another solid start to the week as a rise in US housing sales encouraged investors.

A warning about fiscal responsibility from Fed chairman Ben Bernanke led a stock sell-off on Wall Street overnight.

The S&P500 index fell 1.4 per cent after Bernanke, testifying to a US budget committee, said that the deficit threatened financial stability and that the current level of borrowing could not be sustained.