Economic and market news
In economic and market news, new data show that inflation slowed further to 4.3 per cent in the year to end-November. This outturn was down from 4.9 per cent in October, and said to be the lowest in two years. The softening in inflation was driven in part by outright falls in the price of clothes, appliances, and supermarket staples like lamb and beef over the past 12 months.
Economists say the latest monthly consumer price indicator puts inflation on track to undershoot the Reserve Bank of Australia’s near-term forecasts, but ongoing concerns about cost growth for services like hairdressing and takeaway meals means an official interest rate cut in the first half of the year is still off the cards.
In commodities news, which is important to the performance of the Australian economy, the iron ore price fell 6 per cent last week on concerns about a weakening Chinese economy, Australia’s key commodities trading partner, and heightened tensions in the Taiwan Strait and the Red Sea.
In overseas news, it was reported that US inflation accelerated in December to 3.4 per cent. This was the highest outturn for three months.
Australian indices
ASX 200: Was down 1.41 per cent over the week, to close at 7414.8 points on Tuesday.
All Ordinaries: Was down 1.32 per cent in the period, closing at 7647.1 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
|
93.67 |
3.84% |
+6 |
-4 |
+69 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
95.48 |
3.77% |
+7 |
-4 |
+44 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
90.77 |
4.15% |
+7 |
+1 |
+56 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
87.53 |
4.36% |
+7 |
+1 |
+45 |
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 16 January, the AUD/USD was down again, 1.55 per cent, over the week at 0.6615. The AUD/RMB had also fallen, 1.21 per cent, in the period, closing at 4.7523 on Tuesday.
Venture Capital
Morse Micro
It has been announced that Stoic investee Morse Micro’s FGH100M Wi-Fi HaLow Quectel's module has received CE certification for Europe, and Federal Communications Commission (FCC) certification for the United States.
This industry-first achievement, in collaboration with Quectel, underscores Wi-Fi HaLow technology’s readiness for the global market, and solidifies the protocol’s position as a leading communications standard.
Property
In property news this week, there is said to be an earlier than usual reopening of the market in 2024, with buyers are said to be ‘flocking’ to open houses. The unexpected surge in activity, well ahead of normal market activity in January is thought to be off the back of concerns that there will be a jump in prices now that interest rates are expected to start to tail off later in the year.
Commentators evidence the data that show Sydney home values climbed by 11.1 per cent last year, but the rate of growth slowed dramatically in the past six months, from a monthly growth of 1.8 per cent last May to an increase of just 0.2 per cent in December. However, over the four weeks (to January 14) Sydney values lifted by 0.3 per cent.
