Economic and market news
In Australia this week, economics and financial news was focused on the corporate earning season. Within this, there was discussion of the role that profit seeking might be playing in acerbating the difficultly of tackling inflation. However, one well known commentator suggested that analysis of recent data indicates that it is ‘costs’ not profits that are driving prices up.
In overseas news, the annual central banking conference at Jackson Hole saw the Chair of the Federal Reserve give the strongest indication yet that official interest rates in the United States will be lowered at the next policy meeting, saying that ‘the time has come to adjust policy’. Officials from the European Central Bank and the Bank of England are also reported as indicating that they are open to further loosening of monetary policy settings.
Australian indices
ASX 200: rose again, breaking the 8000 barrier for the index. It was up 0.92 per cent over the week to close at 8071.2 points on Tuesday.
All Ordinaries: Also rose, 1.09 per cent in the period, to close at 8297.1 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
|
100.99 |
3.62% |
+6 |
-48 |
-26 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
3.25 |
98.71 |
3.55% |
+6 |
-44 |
-35 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.75 |
98.71 |
3.91% |
+6 |
-40 |
-25 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
90.11 |
4.14% |
+5 |
-37 |
-26 |
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 27 August the AUD/USD had risen another 1.01 per cent over the week, closing at 0.6787 on Tuesday. The AUD/RMB had also risen, 0.69 per cent, in the period, closing at 4.8354 on Tuesday.
Venture Capital
Cardihab
CEO of Stoic investee Cardihab, Helen Souris, talked to the Townsville Bulletin about its pilot virtual cardiac rehabilitation programin regional north Queensland
Morse Micro
Stoic investee Morse Micro this week celebrated eight years since its inception! Congratulations from the Stoic Venture Capital team!
Property
In property this week, the national auction clearance rate picked up to 71.4 per cent from 70.7 per cent last week. The outturns for the two biggest capitals held steady, after some recent weakness. Auction volumes rose again, with an average of 2000 properties up for auction in the past two weeks, and 2300 expected to go under the hammer this week. Commentators expressed concern that the surge in property availability as the spring selling season starts will collide with a dampening in demand, suppressing clearance rates and price outcomes.
