Economic and market news
In Australian news, new data show that retail sales have now contracted for three consecutive quarters. Spending fell by 0.5 per cent in the June quarter. Within this, there was said to have been reduced consumption of services for the first time, as well as less spending on discretionary goods. This outturn follows falls in consumption of 0.4 per cent and 0.8 per cent in the December and March quarters respectively.
Looking forward, major Australian bank Westpac is predicting that Sydney house prices could rise by as much as 10 per cent this year, amid under supply, increased demand from higher immigration, and a tighter rental market. This is despite the significant increase in interest rates over the past year, and the slowdown in economic growth,
In overseas economic news, the Bank of England raised its official policy rate for the 14th time, to a 15 year high of 5.25 per cent. The decision was made despite the recent lower-than-expected inflation outturn, on the back of concerns that some risks from more stubborn inflation, notably higher wages, have ‘begun to crystallise’.
A speech by the President of the Federal Reserve Bank of New York was reported as suggesting that official interest rates are close to their peak in the United States, but may stay ‘restrictive’ for some time, because of the stickiness of inflation.
Australian indices
ASX 200: Fell 1.87 per cent over the week, to close at 7311.1 points on Tuesday.
All Ordinaries: Also fell, 1.88 per cent, in the week, closing at 7519.7 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 |
0.25
|
92.36 |
3.77% |
-14 |
-53 |
+108 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
95.17 |
3.76% |
-15 |
-42 |
+75 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
91.50 |
4.01% |
-18 |
-24 |
+80 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
88.30 |
4.26% |
-15 |
-15 |
+86 |
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 |
No change (1 August 2023) |
+0.25 (6 June 2023) |
1.85 |
Currencies (source:RBA)
As at the close on 8 August, the AUD/USD had fallen another 2.13 per cent this week, to 0.6531. The AUD/RMB also fell again, 1.50 per cent in the period, closing at 4.7104 on Tuesday.
Venture Capital
Forcite
The CEO and co-founder of Stoic investee Forcite, Alfred Boyadgis, has spoken to Power Sport Business about going ‘all guns blazing’ on the launch of its smart helmet in the United States market.
Wildlife Drones
The important work and innovative tracking technology of Stoic investee Wildlife Drones was featured in conservation publication Mongabay this week.
Property
It was reported that Sydney’s auction clearance rate has dipped below 70 per cent for the first time since March. However, the national clearance rate hit 71 per cent, up slightly on the previous week. Volumes of properties being sold were softer than recently, and prices in some areas are thought to be close to the peak.
