Economic and market news
In Australia, the Reserve Bank of Australia paused its rate rise campaign. The official interest rate remained at 3.60 per cent, this being the first no change decision since it started its tightening phase last May. However, the Governor’s statement stressed that he expects that some further increases in interest rates may well be needed to ensure that inflation returns to the target (of 2 to 3 per cent). He made clear that the decision to hold interest rates steady at the April meeting was to ‘provide the RBA with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty’.
Alongside this, new data confirmed that price pressures peaked at the end of last year. The monthly inflation data showed that annual inflation fell to 6.8 pr cent (from 7.4 per cent). Commentators noted that this was below market expectations of 7.2 per cent.
Australian indices
ASX 200: Rose 2.87 per cent this week, to close at 7236.0 points on Tuesday.
All Ordinaries: Rose 2.94 per cent in the week, closing at 7431.5 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
|
100.67 |
2.90% |
-8 |
-69 |
+106 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.25 |
96.50 |
2.99% |
-8 |
-69 |
+36 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
4.50 |
110.54 |
3.26% |
-6 |
-64 |
+43 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
95.49 |
3.59% |
-5 |
-56 |
+61 |
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) |
|
3.60 |
No change (4 April 2023) |
+0.25 (7 March 2023) |
0.10 |
Currencies (source:RBA)
As at the close on 4 April, the AUD/USD had risen 1.13 per cent in the week to 0.6765. The AUD/RMB rose 1.16 per cent, in the same period, to 4.6570.
Commodities
It was reported that OPEC has made a surprise announcement that it will cut production by more than 1 million barrels of oil a day. This raised concerns in commodity and other markets that the move will cause inflationary pressures, and force central banks to keep interest rates higher for longer.
Venture Capital
Cut Through Ventures published its inaugural quarterly ‘Venture Capital Funding Report’ covering 2023 Q1. The report suggests a dip in funding for the sector in the period. The survey also showed that 9 per cent of investors saw at least one of their portfolio companies shutter operations.
Forcite
Stoic investee Forcite have announced that a $1.65mn grant from the Federal Government will allow it to develop the second-generation of its smart helmet, with new Advanced Rider Assistance Systems for Improved Road Safety of Motorcyclists. The grant was awarded to Forcite and its collaboration partners the University of Canberra, Macquarie University, Western Sydney University, and industry partner the Harley-Davidson Motor Company.
Morse Micro
Stoic investee Morse Micro has won the 2023 IoT Evolution IoT Product of the Year Award for the second consecutive year! It also won the bronze medal winner in the IoT Merit Awards for Telecom and Wireless. Morse Micro's Wi-Fi HaLow technology solves the challenges for Wi-Fi in IoT devices by offering ultra-low power, longer range, and secure connections at a higher capacity.
Property
New data were said to suggest that Sydney’s house prices are ‘poised for a sharp recovery’. This came on the back of a 1.4 per cent jump in values in March, more than four times faster than the previous month, and the sharpest increase since October 2021.
Alongside this, strong auction clearance rates, 70.7 per cent nationally,were taken as a sign of buyer-confidence returning to the market.
