Economic and market news
In Australian economic news, wages growth unexpectedly slowed in June quarter to 0.8 per cent (3.6 per cent annually), from 0.9 per cent (3.7 per cent annually) in March quarter.
Elsewhere, new payments data show that household spending is in outright decline in Victoria and New South Wales, as families pull back in the face of higher mortgage repayments.
In overseas news, the Chinese central bank unexpectedly cut its official rates on Tuesday. This was in the wake of a raft of new data that were weaker than expected. Chinese industrial output and retail sales have both slowed further in the last month. Consumer prices fell in July, 0.3 per cent from a year earlier, the first fall since February 2021. Producer prices dropped for a 10th consecutive month, by 4.4 per cent. This deflation was seen as more evidence that China’s economy has moved into a new phase. Commentators suggested that the ‘end of the Chinese economic miracle’ is the most important macro development of our time, and has serious consequences for the global economy.
In contrast, Japan’s economy expanded at a much faster than forecast, propelled by robust exports in a sign that the recovery remains well on track.
Gross domestic product grew at an annualised pace of 6 per cent in the second quarter, marking the strongest growth since the last quarter of 2020. Net exports contributed 1.8 percentage points to the expansion versus consensus estimates of 0.9 point.
Australian indices
ASX 200: Was little changed, falling by 0.83 per cent, over the week, to close at 7305.0 points on Tuesday.
All Ordinaries: Similarly was almost unchanged in the week, closing at 7520.4 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
|
91.98 |
3.99% |
+5 |
+3 |
+115 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
94.08 |
4.00% |
+6 |
+13 |
+85 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
89.63 |
4.26% |
+6 |
+26 |
+89 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
86.09 |
4.47% |
+6 |
+27 |
+91 |
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 (1 August 2023) |
+0.25 (6 June 2023) |
1.85 |
Currencies(source:RBA)
As at the close on 15 August, the AUD/USD had fallen only slightly further this week, 0.29 per cent, to 0.6512. The AUD/RMB also fell again, 0.62 per cent in the period, closing at 4.7396 on Tuesday.
Venture Capital
BioScout
Stoic investee BioScout has this week talked about how it is helping wine growers in New Zealand, including those that make the famous Oyster Bay Sauvignon Blanc, to protect their crops in a very difficult disease season. They have also shared how they are working with the GRDC’s Grain Innovate Fund to drive profitability for Australian grain growers
Forcite
Alfred Boyadgis, CEO of Stoic investee Forcite, talked to Stoic’s Art of the Start Up series about progress in its mission to transform rider experience and safety, and the next phase in the company’s growth, breaking into the US market.
Wildlife Drones
Dr Debbie Sounders, CEO of Stoic investee Wildlife Drones, spoke toconservation podcast Rewildology about its radio-telemetry tracking system.
Property
Stoic investment partners Elanor Investors Group announced Western Sydney University is set to launch a new learning hub ‘Fairfield Connect’ in its mixed use Fairfield City Central centre, post a $25mn refit.
