Economic and market news
The corporate earnings season in Australia has now concluded, and official interest rates were kept on hold for the third month in a row last week. This has meant a relatively quiet week in economic and market news.
New data show that economic growth was 0.4 per cent in the June quarter. This outturn was in line with the previous quarter. The figure was said to have beaten expectations, boosted by a jump in business investment which offset the weakness in household spending and a decline in productivity.
In signs that weaker consumer demand is expected to continue, it was reported that some retailers are reducing their ordering of Christmas stock. Expecting consumers to be cautious under the weight of cost of living increases including the full impact of the past year of interest rates rises, one major chain has dialled back its orders to 90 per cent of its usual volumes for the November sales and pre-Christmas buying season.
New figures show that agricultural exports hit a record high in the financial year to end-June 2023, thanks to an increase in exports to China as trade tensions ease.
Australian indices
ASX 200: Fell by 1.47 per cent this week, to close at 7206.9 points on Tuesday.
All Ordinaries: Also fell, 1.52 per cent, closing at 7402.9 points on Tuesday.
Government Bonds
Government Bond Yields (Source: Bloomberg)
|
NAME |
COUPON |
PRICE |
YIELD |
1 DAY |
1 MONTH |
1 YEAR |
|
GTAUD2Y:GOV Australia Bond 2 Year Yield |
0.25
|
92.49 |
3.86% |
+1 |
-1 |
+87 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
94.68 |
3.89% |
+1 |
+3 |
+58 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
90.40 |
4.16% |
+1 |
+6 |
+54 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
86.94 |
4.40% |
+1 |
+6 |
+57 |
Reserve Bank of Australia (Source:RBA)
|
RBA CASH RATE TARGET (RBATCTR:IND) CURRENT (per cent) |
MOST RECENT DECISION (percentage points) |
MOST RECENT CHANGE (percentage points) |
1 YEAR PRIOR (per cent) |
|
4.10 |
No change (5 September 2023) |
+0.25 (6 June 2023) |
2.35 |
Currencies (source:RBA)
As at the close on 12 September, the AUD/USD had risen slightly this week, 0.37 per cent, to 0.6425. The AUD/RMB also rose, 0.32 per cent in the period, closing at 4.6832 on Tuesday.
Commodities
The oil price has continued to rise amid ongoing supply cuts and unexpectedly strong demand. Oil has traded above US$90 for the first time in 10 months, and is now being forecast by some to hit $100 a barrel.
Venture Capital
Forcite
Stoic investee Forcite have had their MK1S smart helmet reviewed by Maxim magazine, as part of a feature on the ‘best motorcycle gear to upgrade your ride’. Another exciting step as they break into the US market.
Property
Commentators and sector specialists have suggested that the Australian property market can weather the economic slowdown, thanks to undersupply in key segments of the market, and ongoing high population growth. However, it was conceded that, in the face of high interest rates, it is likely that some non-prime commercial property values may continue to soften.
