AAP

Australia's manufacturing sector continued to shrink in February, but the rate of contraction has slowed.

The Dow Jones Industrial Average rose tantalisingly close to an all-time high on Thursday but failed to top the five-year-old mark and ended up in the red after a late-session sell-off.

Growth at the tail end of 2012 might not have been as upbeat as expected, but new data suggests the economy will continue to be underpinned by mining investment for a while yet.

The Australian share market has reached a fresh four and a half year high, buoyed by improved investor sentiment towards the Italian election outcome.

New laws proposed in the wake of the Montara oil spill, dubbed Australia's worst oil disaster, have cleared parliament.

Western Australia's Liberal party is promising to chip away at the state's housing crisis by removing outdated restrictions on granny flats.

The federal government has released a consultation paper for its plan to change the timing of company tax payments.

A better-than-expected capital expenditure outlook is another sign the Reserve Bank of Australia won't need to cut the cash rate further.

Australian stocks have opened firmer, with a strong showing from Woolworths and Treasury Wine Estates leading the broader market higher.

While Tropical Cyclone Rusty continues to weaken, communities inland from the east Pilbara region are now in its firing line as the storm continues creeping south.

Woolworths' first half profit has grown to $1.15 billion as earnings from its supermarkets rose by six per cent.

Strong reports on the US housing market and durable goods orders propelled stocks higher on Wednesday, with the much-watched Dow index reaching its highest level in more than five years.

The tiny community of Pardoo is set to feel the full force of Severe Tropical Cyclone Rusty, which is set to cross the coastline this afternoon.

A bushfire tearing through Perth's northeastern fringes continues to quickly move in a westerly direction.

The Australian dollar is more than half a US cent lower as uncertainty about the Italian election result weighs on market sentiment.

The Australian share market finished higher following a strong lead from Wall Street and encouraging earnings reports locally.

Australian shoppers may be ready to start splashing their cash again as solid savings rates and low inflation lifts consumer confidence, Westfield boss Peter Lowy says.

A Perth court has confirmed Wright Prospecting's full control over the large Rhodes Ridge iron ore project in the Pilbara after a challenge by Gina Rinehart's Hancock Prospecting.

A deep drop in hotel bookings across Asia, Europe and the United States has dragged down earnings at online travel agency wotif.com.

Disgruntled prison officers in are about to decide whether to strike for a better pay deal as the state election approaches.

Global credit rating agency Standard & Poor's expects Australian economic growth will remain close to trend in coming years, as public debt peaks at a low level.

Prime Minister Julia Gillard believes the Australian dollar will stay high for some time but says this shouldn't stop the nation from having a viable manufacturing sector.

A fall in commodity prices in the second half of 2012 contributed to a decline in construction activity in the final three months of the year.

Mining services company MacMahon Holdings will post a loss of up to $20 million this financial year because of its troubled construction business.

Tropical Cyclone Rusty has been upgraded to a category four, and the massive storm is now battering the Pilbara coast.

The Australian share market is higher after Wall Street rose sharply on better-than-expected housing and consumer confidence data.

Engineering firm UGL's first half profit has slumped by 53 per cent due to $25 million in costs from a restructure.

US stocks have closed decisively higher following strong reports on consumer confidence and the housing market.

A sharp jump in global miner Rio Tinto's debt has led to a downgrade in its credit outlook by ratings agency Standard & Poor's.

The Australian dollar has closed relatively flat as investors hold out to see how European markets react to Italy's election results.

The Australian Greens and the federal coalition both want Labor's mining tax subjected to another Senate inquiry, but for entirely different reasons.

Travel agency Jetset Travelworld will continue to cut costs while it considers ways to boost business.