Economic and market news
In Australian economics news, the unemployment rate fell to 3.6 per cent (from 3.7 per cent) in May. This was said to be off the back of an higher-than-expected increase in employment, of 76,000, a rebound in growth after a small fall around Easter (in April).
The employment-to-population ratio rose 0.2 percentage points to another record high of 64.5 per cent. This is an increase of more than two percentage points (2.1) since March 2020. The participation rate increased 0.1 percentage point to 66.9 per cent. It rose 0.2 percentage points for women, to 62.7 per cent, and remained at 71.2 per cent for men.
In overseas economic news, the United States Federal Reserve left interest rates on hold at its June meeting. This was the first ‘pause’ in monetary policy tightening for over a year. However, the central bank signalled that it expects two further ‘small’ rate rises (totalling 0.5 percentage points) over the course of the second half of the year.
In the European Union, the ECB raised its policy rate by 0.25 percentage points and signalled a further increase is ‘very likely’ in July.
In contrast, the Chinese central bank has moved into ‘stimulus’ territory, with two waves of interest rate cuts this week. This was after weaker-than-expected industrial production, construction activity and retail sales data in May further increased concern about China’s economic health.
In New Zealand, new data show that the economy contracted again in the first three months of 2023. This was the second consecutive quarter of negative growth, meaning the country is technically in recession. GDP fell 0.1 per cent in the March 2023 quarter, following a 0.7 per cent fall in the December 2022 quarter. The economy grew 2.2 per cent year-on-year.
Australian indices
ASX 200: Rose over the week, 3.07 per cent, to close at 7357.8 points on Tuesday.
All Ordinaries: Also rose, 2.99 per cent, in the week, closing at 7548.5 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 |
3.25
|
98.42 |
4.34% |
-2 |
+65 |
+88 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.25 |
92.62 |
3.91% |
+0 |
+57 |
+10 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
4.50 |
103.82 |
4.02% |
+5 |
+43 |
-4 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
88.41 |
4.24% |
+5 |
+31 |
+4 |
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 |
+0.25 (6 June 2023) |
+0.25 (6 June 2023) |
0.85 |
Currencies (source:RBA)
As at the close on 20 June, the AUD/USD had risen 0.62 per cent in the week, to 0.6803. The AUD/RMB had risen 0.77 per cent in the period, to 4.8816.
Venture Capital
Forcite
Stoic investee Forcite completed its first at scale order to the United States, making it the most mass produced smart helmet in the world! Meanwhile, CEO and co-founder Alfred Boyadgis has talked about what drives the Forcite team.
Jayride
Stoic investee Jayride announced that it has rolled out an important new ‘Ride Tracking’ facility for all transport companies on the platform. Drivers can now send status updates with GPS tracking at key moments on their ride, with single clicks, and in ways that provide great customer experience for Jayride's travel brand partners and travellers.
Property
The national auction clearance rateheld at over 70 per cent for the seventh straight week. This was said to bedespite the number of homes taken to auction being the highest in 11 weeks. Activity was supported by a reported surge in the average number of bidders in auctions across the country.
Supporting these data, it was revealed that houses were sold at a faster rate than they were being listed in the three months to May, as demand outstripped supply of properties.
