Economic and market news
In Australian economic and market news, there were a broad range of outcomes in the corporate earnings season, with many commentators calling for an interest rate cut to ‘revive’ sectors of the economy. However, facing a parliamentary hearing in Canberra after last week’s board meeting, the Reserve Bank of Australia’s Governor reiterated messaging from her media conference that inflation pressures remain in the economy, particularly in the services sector. As such, she suggested that the Reserve Bank’s Board is not ruling out another increase in its official rate, nor a cut should inflation, labour market, and growth conditions change.
In overseas economic news, data show that the pace of Chinese deflation is accelerating. China’s consumer prices fell by 0.8 per cent in the year to end-January, the fastest since 2009. This compares to a fall of 0.3 per cent in the year to end-December. China’s economy slipped into deflation in July 2023, and prices have been flat or fallen in every month since then except August.
In contrast, in the United States there were further signs of economic strength with a fall in the number of people claiming unemployment benefits.
Australian indices
ASX 200: Was up 0.29 per cent over the week, to close at 7603.6 points on Tuesday.
All Ordinaries: Was up 0.50 per cent in the period, closing at 7847.8 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
|
93.90 |
3.85% |
+1 |
+6 |
+41 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
95.43 |
3.80% |
+1 |
+8 |
+26 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
90.67 |
4.17% |
+1 |
+10 |
+41 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
87.31 |
4.38% |
+1 |
+10 |
+33 |
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 February 2024) |
+0.25 (7 November 2023) |
3.35 |
Currencies(source:RBA)
As at the close on 13 February, the AUD/USD was unchanged over the week, closing at 0.6516 (0.6515 last Tuesday). The AUD/RMB was up slightly, 0.06 per cent, in the period, closing at 4.6894 (previously 4.6894) on Tuesday.
Venture Capital
ENA Respiratory
Stoic investee ENA Respiratory announced that multiple of its patent applications have been allowed by the European Patent Office and the Chinese Patent Office. This means that use of various compounds under development for a range of respiratory indications, including its lead candidate INNA-051, will be protected. It noted that these decisions strengthen ENA Respiratory’s existing patent position and provide significant additional patent term to the company’s lead asset, underpinning the value being built in its clinical programs.
Property
In property news this week, auction clearance rateshit their highest rate in 18 months.The national preliminary clearance rate jumped to 76.2 per cent, up from last week’s 73.9 per cent (which was revised down to a final 68.3 per cent). This was said to be due to a boost in confidence on the back of expectations that official and market interest rates have peaked.
