Economic and market news
In Australian economic news, the Reserve Bank of Australia decided to keep its official interest rate unchanged at 4.35 per cent at its meeting yesterday. The statement that accompanied the decision suggested that there had been limited information released since its decision to raise the cash rate in early November, and what had been received was broadly in line with its expectations. In particular, it noted that the monthly CPI indicator for October (see below) suggested that inflation is continuing to moderate. It was also highlighted that wages growth picked up in the September quarter but that this was expected given that it captured the earlier Fair Work Commission decision on award wages, and wages growth is not expected to increase much further. Conditions in the labour market were also judged as continuing to ease gradually, although they remain tight. Commentators suggested the Governor had ‘left the door open’ to more interest rate rises next year, after it has received the next detailed quarterly inflation outturn at the end of January.
New data show that inflation has cooled more quickly than the market expected. The outturn for October saw prices rising by 4.9 per cent in the year, down from 5.6 per cent in the previous month. However, commentators cautioned that the monthly series does not include the prices of many services, where price growth is proving stickier than in goods.
In overseas news, inflation in the Eurozone was reported as having fallen to 2.4 per cent in November, down from 2.9 per cent in October. This was the lowest outturn in over two years, and due largely to plummeting energy costs.
Australian indices
ASX 200: Was up slightly, by 0.66 per cent, this week to close at 7061.6 points on Tuesday.
All Ordinaries: Also rose, 0.65 per cent, over the week, closing at 7269.8 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
|
92.87 |
4.07% |
-3 |
-25 |
+111 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
94.19 |
4.05% |
-4 |
-31 |
+94 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
88.72 |
4.41% |
-3 |
-31 |
+105 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
84.87 |
4.61% |
-4 |
-33 |
+95 |
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 5 December, the AUD/USD had fallen 0.59 per cent over the week to 0.6584. The AUD/RMB also fell, down 0.69 per cent in the period, closing at 4.7040 on Tuesday.
Venture Capital
Certa
Stoic investee Certa Theraputics presented its phase 2 clinical trial data at the American College of Rheumatology conference last week. The results show that 60 per cent of patients treated with FT011 400mg, and 20 per cent of patients in the FT011 200mg group (compared with 10% in the placebo group), showed a clinically meaningful improvement in their systemic sclerosis (scleroderma).
Certa has recently received its FDA Orphan Drug Designation for this treatment and is preparing for a Phase 3 clinical trial.
Exonate
Stoic investee Exonate announced the successful completion of its Phase Ib/IIa clinical trial for the treatment of diabetic macular oedema. This first of its kind topical therapeutic is administered in the form of an eye drop. Currently treatment options involve monthly injections directly into a patient's eye.
Jayride
Stoic investee Jayride was announced as the tenth fastest growing company in Australia!
Morse Micro
Stoic investee Morse Micro is having an excellent awards season. This week it won Start-up of the Year in the prestigious Elektra Awards in London. It was also named Fast Company's 2023 'Next Big Thing in Tech' and 'IoT Most Promising Enterprise' at the China IoT Innovation Awards held by industry magazine Elecfans.
Property
New data show that mortgage lending accelerated in October, on the false expectation, after three months of no change, that the official interest rate had reached its peak. The 5.4 per cent increase in new lending commitments (excluding refinancing) lifted the total to $26.7 billion in, a 4.9 per cent increase on October last year. This was the first year-on-year growth in new mortgage commitments in almost 18 months (April 2022).
