Economic and market news
In Australian economic news, data show that unemployment held steady at the near record low of 3.5 per cent in June, despite the recent slowdown in consumer spending. This was supported by 32,600 more people taking up employment during June, more than double the expected increase of 15,000. The unemployment rate has now held between 3.5 and 3.7 per cent since June 2022. Measures of labour market participation and hours worked also remain close to record high levels.
In the UK, inflation surprised on the downside for the first time in five months, falling to 7.9 per cent in June, down from 8.7 per cent in May. Commentators suggested that markets had pulled back on ‘bets’ that the Bank of England will raise official rates by another 50 basis points when its policy committee meets in August.
Across developed economies, core inflation pressures appear to be easing in response to the concerted and significant policy tightening by central banks. However, there are said to be ongoing concerns about persistent price pressures in the services sector. The fear is that as wages rise in these economies, in response to recent inflation, their significant weight in services-sector business costs could lead to ongoing inflationary pressures that are less responsive to interest rates.
In China, authorities were said, for the first time, to have directly acknowledged the key risks to hitting the 5 per cent growth forecasts this year. However, pledges to ease restrictions on the property sector, boost consumption and tackle local government debt were seen as falling short of being considered a ‘major stimulus’ package.
Australian indices
ASX 200: Rose 0.77 per cent over the week, to close at 7339.7 points on Tuesday.
All Ordinaries: Also rose 0.77 per cent in the week, closing at 7554.7 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
|
91.72 |
4.02% |
+5 |
-17 |
+134 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
94.48 |
3.90% |
+4 |
-3 |
+75 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
91.39 |
4.03% |
+3 |
+4 |
+67 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
88.85 |
4.21% |
+3 |
+2 |
+68 |
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 (4 July 2023) |
+0.25 (6 June 2023) |
1.35 |
Currencies(source:RBA)
As at the close on 25 July, the AUD/USD had fallen 0.78 per cent in the week, to 0.6768. The AUD/RMB had also fallen, 1,18 per cent in the period, closing at 4.8350 on Tuesday.
Venture Capital
BioScout
Stoic investee BioScout announced its expansion into Canada as part of the Pan Canadian Smart Farm Network. The team received their first spore samples from Canada this week. Congratulations to everyone at BioScout on reaching this significant milestone!
Lenexa Medical
Stoic investee Lenexa Medical has partnered with Customer Feedback Systems Australasia to introduce and support its world-leading personalised pressure injury prevention and enhanced care system, LenexaCARE®.
Property
New data show an increase in properties available for auction. This is reportedly due to a surge in investors off-loading properties amid concerns about rising interest rates. An ‘unseasonal’ spike in listings (a 17 per cent increase) post the end of the financial year was attributed to investment properties being put up for sale. Proposed caps on rent increases in Victoria were said to be exacerbating the trend in that state. It was suggested that a positive side effect of this upward trend in supply might be a weakening in price pressure.
