Economic and market news
In Australia, the unemployment rate rose above 4 per cent for the first time in two years. The number of unemployed people increased by 22,000 in January, pushing the jobless rate to 4.1 per cent, from 3.9 per cent in December. Workers taking holidays over the Christmas-New Year period contributed to the weaker-than-anticipated employment result in January, and a larger-than-usual decline in hours worked. However, the total number of people in jobs remained virtually flat at a record 14.2 million last month.
It was also noted that, in common with January 2022 and 2023, the increase in the unemployment rate in January 2024 coincided with a higher-than-usual number of people who were not employed but who said they will be starting or returning to work in the future.
In the United States, inflation figures show that price pressures were stronger than expected in January. The monthly outturn fell to 3.1 per cent, from 3.4 per cent in the year to end-December. However, this was considerably higher than the 2.9 per cent expected by the markets, and disguised an increase in the underlying ‘inflation pulse’. The ‘annualised core CPI’ numbers, suggested that some key process have accelerated from 3.6 per cent in six-month terms to 4 per cent in three-month terms and 4.8 per cent in one-month terms.
Australian indices
ASX 200: Was up 0.73 per cent over the week, to close at 7659.0 points on Tuesday.
All Ordinaries: Was up 0.81 per cent in the period, closing at 7911.5 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 |
0.25
|
94.00 |
3.83% |
-1 |
-12 |
+31 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
95.48 |
3.79% |
-1 |
-11 |
+18 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
90.63 |
4.18% |
+1 |
-11 |
+37 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
87.30 |
4.39% |
+1 |
-11 |
+28 |
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 (6 February 2024) |
+0.25 (7 November 2023) |
3.35 |
Currencies(source:RBA)
As at the close on 20 February, the AUD/USD was up slightly,0.23 per cent, over the week, closing at 0.6531 on Tuesday. The AUD/RMB was up slightly, 0.24 per cent, in the period, closing at 4.7008 on Tuesday.
Venture Capital
Wildlife Drones
Stoic investee Wildlife Drones has announced that it has been selected as one of the finalists in the innovation technology category by the Australian Association for Uncrewed Systems, for its contribution to the field of wildlife conservation and drone technology.
It has also been featured in Dronelife.com. In the article, CEO Dr Debbie Saunders talks about how its cutting-edge drone-based telemetry system is revolutionizing conservation efforts around the globe.
Property
Indiscussion about the property sector this week, it was noted thatthe rerating of office markets around the country is enticing private capital back, to bet on a recovery in the sector.
Stoic investment partner Elanor Investors Group was highlighted as one of the parties already actively engaging. It was suggested that early plays range from secondary office markets to buildings in the heart of capitals along the eastern seaboard which show solid potential as leasing markets stabilise. Managers are apparently finding good options as global players trim their portfolios and refocus on their home markets after expanding during the property boom.
Investors backing the funds are said to be receiving high returns of up to 15 per cent .
In residential property,new data show thatthe national clearance rate hit 75.4 per cent last week, down just slightly from the previous week’s result of 76.2 per cent (revised down to 70.3 per cent on final numbers) – on a lower volume of 1642 listed auctions.
Within this figure, Sydney’s preliminary clearance rate was its best in almost three years, at 81.7 per cent from 688 listed auctions.
Commentators suggested that some confidence has returned to the auction markets amid falling inflation and a growing expectation that cuts to interest rates later this year could see housing price growth accelerate.
