Economic and market news
In Australian economic news, new wages growth data was slower than expected by markets and commentators. Growth in wages remained a for the second quarter at 0.8 per cent in the three months to end-June. Looking at the figures in more detail, private sector wages grew by 0.7 per cent in the June quarter, down from 0.9 per cent in the March quarter. Public sector wages rose 0.9 per cent, up from 0.6 per cent.
Notably, the annual pace of increase also held steady, at 4.1 per cent, which means that wages have now grown faster than inflation for three consecutive quarters. Prices rose by 3.8 per cent over the same period.
Alongside this, the Consumer Sentiment Index rose 2.8 per cent to 85 in August from 82.7 in July. However, the mood was said to have ‘remained sombre’ due to the elevated cost of living and concerns about the prospect of higher borrowing costs.
Global markets have remained unsettled this week. This was after the significant sell off seen last week, sparked by increased concerns of a possible recession in the United States. Geopolitical tensions have increased this week, with raised expectations of a larger scale conflict in the middle east including Iran, adding to the market instability.
Australian indices
ASX 200: Regained 1.90 per cent over the week to close at 7826.8 points on Tuesday.
All Ordinaries: Also rose, 1.93 per cent in the period to close at 8042.2 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 |
4.25
|
100.80 |
3.74% |
-4 |
-40 |
-12 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
3.25 |
98.23 |
3.66% |
-4 |
-39 |
-20 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.75 |
97.96 |
4.00% |
-4 |
-32 |
-11 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
89.24 |
4.22% |
-4 |
-30 |
-11 |
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) |
|
4.35 |
+0 (6 August 2024) |
+0.25 (7 November 2023) |
4.10 |
Currencies(source:RBA)
As at the close on 13 August the AUD/USD had regained 1.27 per cent over the week, closing at 0.6594 on Tuesday. The AUD/RMB had also risen, 1.63 per cent, in the period, closing at 4.7307 on Tuesday.
Venture Capital
Kinoxis
Stoic Investee Kinoxis announced the successful completion of its Series B capital raise. Stoic invested again as part of its ‘All Stars’ Fund, with other lead investors in the $14.5 million round including Uniseed, UniSuper, University of Sydney and Avicella Capital.
The funds raised will be used to support Phase 2 programs for its lead drug candidate, KNX100, which addresses behavioural and psychological symptoms across multiple indications, including agitation and aggression in dementia and several substance use disorders.
Property
In property news this week, the national auction clearance rate lifted slightly to be above 70 per cent (70.4 per cent) once more. However, this pick up from 69.2 per cent last week was largely as a result of relative strength in the outturns for smaller capitals. Sydney and Melbourne’s markets remained soft.
