Economic and market news
In economic news this week, new data show that Australian retail trade only rose 0.1 per cent in April. This was a rebound from a 0.4 per cent fall in March, but weaker than the 0.2 per cent rise markets had been expecting.
Year-on-year, retail trade was up 1.3 per cent. However, adjusted for population, retail spending was 1.6 per cent lower in the year to April, and has been falling since late-2022 as cautious consumers incrementally reduce their discretionary spending.
In a more positive light, the ‘soft’ figures may give the central bank more evidence that the economy is slowing enough to help bring inflation back to target.
In overseas news, it was reported that annual inflation fell in the UK in April, to 2.3 per cent from 3.2 per cent in March. However, this deceleration was said to be less than expected, and has therefore reduced expectations that the Bank of England will be able to cut interest rates soon. It was noted in particular that services price inflation was little changed at 5.9 per cent, down from 6 per cent the previous month.
In China, industrial profits rose in April. The increase of 4 per cent on a year earlier reversed a drop in March that ended seven straight months of increases. The uptick was said to reflect a government push for equipment upgrades which lifted demand, alongside a return to growth in exports.
Australian indices
ASX 200: Fell 1.08 per cent over the week to close at 7766.7points on Tuesday.
All Ordinaries: Fell 1.05 per cent in the period, closing at 8034.9points 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
|
100.41 |
4.01% |
-1 |
-16 |
+42 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
3.25 |
96.77 |
3.98% |
-1 |
-22 |
+51 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.75 |
95.89 |
4.26% |
-2 |
-26 |
+53 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
86.80 |
4.45% |
-2 |
-25 |
+42 |
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 (7 May 2024) |
+0.25 (7 November 2023) |
3.85 |
Currencies(source:RBA)
As at the close on 28 May the AUD/USD was up 0.14 per cent over the week, closing at 0.6667 on Tuesday. The AUD/RMB was up 0.27 per cent, in the period, closing at 4.8312 on Tuesday.
Venture Capital
Cardihab
Stoic investee Cardihab has shared that its digital cardiac rehabilitation program has been highlighted as a case study in the Australian Government Productivity Commission paper ‘Leveraging Digital Technology in Healthcare’, exploring how technology can enhance patient outcomes, increase productivity and efficiency, and cut costs.
Property
In property news this week, data show that the auction clearance rate nationally held steady, increasing slightly from 71.1 per cent to 71.5 per cent. This outturn was even though the number of properties offered ticked up to 2,163 from 2,146 the week before. It was also well up on the comparable week a year ago when 1,887 auctions were held.
