Economic and market news
In Australian news this week, it was revealed that the economy grew by just 0.2 per cent in the September quarter and 2.1 per cent over the year to end-September. It was noted that, although this was the eighth straight rise in quarterly GDP, growth has slowed over 2023 in response to the series of interest rate increases. Media highlighted that the combination of slowing growth and increased immigration has resulted in the lowest level of income per head in eight years.
Separately, consumer sentiment index was said to have risen 2.7 per cent in December to a ‘still very weak’ 82.1 points, as fears of another interest rate rise ease. However, it was noted that the full impact of the monetary policy tightening campaign is yet to hit all mortgage holders. Alongside this, business conditions and confidence were shown to have fallen in November.
In overseas news, new data show that Chinese consumer prices fell 0.5 per cent last month from a year earlier. This was said to be the sharpest drop in three years, and weaker than the 0.2 per cent decrease projected by economists in a Bloomberg survey. Producer prices declined 3 per cent. Concerns that China might be facing a period of deflation are in contrast to the inflation pressures still being felt in the US, Europe and Australia. The falling prices are said to be a result of weak domestic demand in China.
In the United States, jobs growth accelerated in November. This pushed unemployment down to 3.7 per cent from 3.9 per cent.
Australian indices
ASX 200: Was up a relatively strong 2.46 per cent this week to close at 7235.3 points on Tuesday.
All Ordinaries: Also up by a similarly amount (2.43 per cent) over the week, closing at 7446.4 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
|
93.02 |
4.03% |
-1 |
-26 |
+96 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
94.48 |
3.99% |
-1 |
-31 |
+82 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
89.38 |
4.32% |
-1 |
-29 |
+94 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
85.79 |
4.52% |
-1 |
-32 |
+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) |
|
4.35 |
+0 (5 December 2023) |
+0.25 (7 November 2023) |
3.10 |
Currencies (source:RBA)
As at the close on 12 December, the AUD/USD was almost unchanged over the week (up 0.11 per cent) at 0.6591. The AUD/RMB had risen 0.0.57 per cent in the period, closing at 4.7302 on Tuesday.
Venture Capital
Morse Micro
Stoic investee Morse Micro announced a new partnership with Synergy Associates Inc to enhance its customer relationships, sales support, and product presence in the New England region. Synergy Associates has a strong track record of fostering market growth and deep relationships with OEM customers in the region.
Morse Micro was also announced as a finalist in two categories of the 8th Annual Wi-Fi Awards.
Property
New data show that auction clearance rates continued to fall this weak, as property markets ‘falter’. The preliminary national auction clearance rate was down to 66.9 per cent from 67 per cent. This weakness was seen mostly in Sydney where the clearance rate fell from 66.3 per cent from 68.5 per cent the previous week. The ‘petering out’ in the market rebound is considered to be ‘under the weight’ of the full effect of interest rate increases feeding through.
In commercial property news, the $169.5mn purchase of a Brisbane office tower by Stoic investment partner Elanor Investors Group, from Credit Suisse,is set to reap a yield of 10 per cent.
Also in commercial property news, investors are reportedly being pitched net returns of over 7 per cent on sub-regional malls anchored by non-discretionary tenants such as supermarkets, as major landlords clear them off their books.
