The fragile tone to sentiment on financial markets this year has carried over into May.

The boom in Australian buy-to-let mortgages that has helped fuel record household borrowing could be the next driver of bank bad debts rather than corporate defaults.

Flanked by interest rate decisions in Britain, Japan and Australia, the IMF’s annual meeting in Lima takes centre stage this week, with policymakers focusing on China’s economic slide and its impact on the rest of the world.

Mortgage approvals in Britain rose in May to their highest level since March last year, according to data yesterday from the British Bankers’ Association.

The marked strengthening of the dollar, evident over the second half of 2014, continued in the early part of 2015. The US currency gained around 11% against the euro and 6% versus sterling in the opening three months of the year, writes Oliver Mangan.

The euro has lost considerable ground since last spring as the persistence of very weak growth in the eurozone, coupled with a fall in inflation to very low levels, forced the ECB into further policy easing moves.

Australian media has named the hostage-taker in Sydney as Man Haron Monis.

A major police operation is under way in downtown Sydney, where several people inside a chocolate shop and cafe could be seen through the windows with their hands held in the air.

Calling an end to the commodity boom is problematic because the definition of what constitutes the boom depends on who you are.

Japan's Nikkei 225 fell today amid a stronger yen and signs of a slowing US economy, while other key Asian stock indexes were closed for a public holiday.

Asian stocks rose today as investors stayed calm in the face of a possible debt default by Greece to search for good deals in technology shares boosted by stunning results from Apple.

World stocks rose today amid growing optimism that European leaders will approve aggressive plans by the end of the week to rescue the region from a debt crisis that has rocked financial markets for months.

THE Australian dollar climbed after a government report showed the economy expanded in the second quarter at a faster pace than economists had forecast.

AUSTRALIA’S jobless rate rose to an eight-month high in July as hiring stalled, prompting Goldman Sachs & Partners Australia Pty to predict as many as two interest rate cuts this year.

INTEREST rates were kept on hold by the European Central Bank (ECB) yesterday with analysts confident it will stay that way until the middle of next year.

Australia’s central bank cut interest rates by a bigger-than-expected 0.75% amid strong signs the economy is slowing quickly.

Australia’s central bank has been buying Australian dollars to provide the market with certainty and liquidity amid a plunge in the currency’s value.

Asian stock markets plunged today as fears grew over the deepening world financial crisis.

World stock markets were mixed today as banking stocks on both sides of the Atlantic took another pounding.

Shares fell around the world again today as one country battled for economic survival.

Australia’s central bank cut its official interest rate by a bigger-than-expected 1% today to ease credit concerns amid a global financial turmoil, cheering investors around the region.

Australia’s central bank raised its official cash interest rate by 25 basis points to 7% today, its highest since 1996.

THE Reserve Bank of Australia warned the current calm in financial markets could be the prelude to a storm that could wreak havoc in the world economy.