Economic and market news
Economic and political news this week was dominated by the Federal Government’s announcement that it would introduce price caps on gas, and the related speculation about whether and when it would succeed in reducing prices for consumers, if the legislation passes through the Senate ahead of Christmas. There was also related reporting of comments from the industry that the measures would reduce gas supply and investment.
New data show that the Australian economy grew by 0.6 per cent in the three months to end-September, and 5.9 percent over the year. Commentators suggested that this was below expectations, although it was in line with the Reserve Bank of Australia’s forecasts. These figures were said to show how quicky, and strongly, the economy rebounded after the last phase of lockdowns, despite significant ongoing ‘headwinds’ from waves of COVID-19.
Alongside this, new data saw business confidence turn negative in November for the first time in a year, on concerns that consumers will pullback amid concerns about inflation and interest rates. This was despite the fact that current business conditions remained well above the long-term average.
Australian indices
ASX 200: Fell 1.21 per cent, over the week, to 7203.3 points at the close on Tuesday.
All Ordinaries: Also fell, 1.32 per cent in the past week, closing at 7389.2 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 |
0.25
|
94.68 |
3.10% |
+3 |
+2 |
+248 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
97.89 |
3.21% |
+4 |
-12 |
+191 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
1.75 |
86.18 |
3.40% |
+2 |
-25 |
+180 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
94.54 |
3.68% |
+2 |
-35 |
+175 |
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) |
|
3.10 |
+0.25 (6 December 2022) |
+0.25 (6 December 2022)
|
0.10 |
Currencies (source:RBA)
As at the close on 13 December, AUD/USD had risen slightly, 0.36 per cent, on last week, to 0.6755. The AUD/RMB rose 0.37 per cent in the week to 4.7150.
Commodities
Goldman Sachs has forecast record copper prices in 2023, as a consequence of supply shortages and strong demand due to the accelerating clean energy transition.
Venture Capital
Lenexa Medical
Stoic investee Lenexa Medical was invited to pitch as part of the 10th annual Victorian Healthcare Week
Morse Micro
Amazing news out yesterday, Stoic investee Morse Micro won both WiFi NOW’s Best Wi-Fi Startup and Best Wi-Fi IoT Product for a record third consecutive year. Huge congratulations!
Property
The Elanor Healthcare Real Estate Fund (EHREF) announced a partnership with a new Asian-based institutional investor. This will facilitate recapitalisation of the Fund and provide full liquidity for investors. The partnership will allow growth in the portfolio of core healthcare real estate assets and the continuation of the strong investment returns. Stoic Asset Management’s QCAX Australian Property Fund is a strategic investor in the EHREF’s assets.
This week’s property auction data show that it was one of the busiest weekends of the year, but that the combined clearance rate dipped to the lowest level in almost five months, at 57.9 per cent. There was speculation that this would lead to further price falls when the market reopens in the new year, off the back of an average 5.2 per cent fall in the first 11 months of this year.
