Economic and market news
In Australian economic news this week, the Reserve Bank of Australia’s Governor appeared before a parliamentary committee, and was reported as being ‘pessimistic’ and ‘leaving no doubt that he is not done raising interest rates’.
New data apparently show that households are starting to cut back on non-essential purchases, such as clothing and home appliances, in the face on ongoing interest rate rises. Retail turnover held steady in April, whereas expectations had been for a small increase.
In overseas economic news, UK inflation remained much stronger than expected in April at 8,7 per cent. The fall from 10.1 per cent in March was led by last year’s surge in energy prices (because of the war in Ukraine) dropping out of the calculations for annual inflation. However, commentators said that the drop into single digits for the first time in 10 months was overshadowed by the evident ‘stickiness’ of inflationary pressure, and accelerating core and services prices. Markets increased their ‘bets’ on further increases in official interest rates in the UK.
In the United States, new figures show that the labour market remains tight, despite a slight increase in the number of people claiming unemployment benefits.
Australian indices
ASX 200: Fell over the week, 0.70 per cent, to close at 7209.3 points on Tuesday.
All Ordinaries: Also fell, 0.81 per cent, in the week, closing at 7387.3 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
|
99.39 |
3.58% |
0 |
+55 |
+119 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.25 |
94.56 |
3.44% |
-1 |
+37 |
+47 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
4.50 |
106.74 |
3.68% |
-2 |
+34 |
+42 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
91.20 |
3.98% |
-1 |
+30 |
+54 |
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) |
|
3.85 |
+0.25 (2 May 2023) |
+0.25 (2 May 2023) |
0.35 |
Currencies(source:RBA)
As at the close on 30 May, the AUD/USD had fallen 2.12 per cent in the week, to 0.6509. The AUD/RMB had fallen 1.52 per cent in the period, to 4.6185.
Venture Capital
Forcite
Stoic investee Forcite’s co-founders were interviewed in one of Australia's biggest national newspapers this week, talking about how its research and development into smart helmet technology can cut motorcycle fatalities on our roads.
Jayride
Tech investor and executive chairman of Thorney Investment Group Alex Waislitz talked to Stockhead.com about why he owns 19 per cent of Stoic investee Jayride, and what it is that makes him think this company has the potential to become another successful Australian-born player in the global travel space, alongside Webjet.
Morse Micro
Stoic investee Morse Micro shared that its Wi-Fi Halow is now being used by Silex Technology in the new high-performance SDIO module.
Property
New apartment approvals have apparently fallen to their lowest levels in eleven years thanks to rising labour and materials costs, and higher interest rates. This has sparked warnings that the housing crisis is set to get worse, and for longer.
New figures show that 98 per cent of all house sales in Australia were done at a profit in April, as expectations solidify that the market correction is now over, after a ‘short, sharp’ downturn.
