It was an interesting week amongst a backdrop of bad news.
The market closed down 38 points or around 0.7% last week.
On the last day of trade, the market covered the losses from earlier in the week .
The official unemployment rate is 6%.
Bond yields continue to drop. Increasing speculation that the big end of town is starting to think that the markets are a little heated at present.
We also see concerns about European debt with the second largest bank in Portugal deferring a debt payment. The banks stock fell 18% before trading in its bonds and shares were suspended.
Against that backdrop our markets performed extremely well for the week.
But what is to come over the next month or so?
The big news is the mining and carbon tax. The new Senate is looking for agreed changes to the drafted legislation to be in writing before providing support to wind back this tax.
Although this will take a couple of more weeks it still under pins the current positive view on our markets.
As our country runs on mining so the demise of this tax should see this sector start to move once again.
But do not hold your breath. It will take years and will not be like it was in 2007.