Economics

Business conditions improved slightly in February, yet confidence dipped, according to the latest NAB survey on the Australian economy.

Recent data analysis from the Australian Securities and Investments Commission (ASIC) sheds light on significant short squeeze activity that unfolded on the ASX in late February. Hedge funds made substantial adjustments to their positions, leading to the covering of nearly $1 billion worth of shorted shares and reshuffling their bets towards prominent ASX-listed companies.

China's 18 top copper processors are convening tomorrow to address the burgeoning crisis in copper concentrate supplies, marking a pivotal moment for the world's largest copper processing industry. The sector, responsible for over half of global copper output in 2023, faces challenges sourcing materials amidst mining shortfalls and heightened competition from India.

Iron ore prices have taken a nosedive, plummeting nearly 5 per cent and inching towards the $US110 a tonne threshold, as China's demand disappoints, leaving the market grappling with hefty inventories.

In yet another display of stern resolve, the Chinese government is doubling down on its stance towards the beleaguered property sector, signaling a no-nonsense approach to tackling its woes head-on.

Japan's stock market sold off steeply on Monday as investors assessed better economic growth data and concluded that it could see the end of the current super easy monetary policy stance from the Bank of Japan at its two meetings next week.

China can attribute the better-than-forecast seasonal rise in consumer price inflation in February to the Lunar New Year break. However, the holiday break, known for significant spending on food and travel, had no impact on the almost endemic deflation in producer prices, which continued to decline for yet another month in February.

Despite gold hitting a series of record highs last week, the precious metal is doing it without the support of most investors, as the outflow of metal from metal-backed Exchange Trading Funds (ETFs) continued in February.

Well, I guess it pays to have a bit of perspective in markets at times when the momentum is all go, go, go and record-breaky. After what was a 'goldilocks' US jobs report for February — some good, some bad — US stocks retreated on Friday, closing out a volatile five sessions with the worst weekly loss since October.

Oil prices stalled last week, despite a weaker US dollar and lower bonds rates and lot’s of bullish chat about rising demand.

This week, the US Federal Reserve will closely scrutinize its inflation battle with the imminent release of the crucial Consumer Price Index on Tuesday and the Producer Price Index on Thursday.

Numerous financial commentators, both within and outside the markets, persist in warning about potential risks to Australia's banks from bad debts, particularly concerning home loans and commercial property.

In a dynamic week of financial maneuvering, Europe appears to be positioning itself for a mid-year rate cut, while across the Atlantic, all eyes are on the United States Federal Reserve and its evaluation of inflation data. Despite this anticipation, Chair Jay Powell has reiterated the Fed's cautious approach, emphasizing the need for more comprehensive inflation metrics before any significant monetary policy decisions are made.

It’s a poor state of affairs when a key market player in Australia – the ASX – cops a fine from the key market regulator – ASIC – for breaches of its own rules.

China's foreign trade saw a solid improvement in January and February with growth in exports and imports stronger than expected when compared to the same two months period of 2023.

A massive thumbs-down from US investors to the move by lithium and chemical giant Albemarle, to raise up to $US2.01 billion in an issue of securities.

Whatever mysterious negatives spooked equity markets—especially Wall Street—on Tuesday slipped by gold. While major Wall Street indexes saw their biggest one-day falls for weeks, gold bounced to a new record high.

The sharp fall of the Hong Kong stock market reflects the reception of China's 2024 economic agenda by markets following its presentation on the opening day of the country’s National People’s Congress.

For yet another year, China has issued what amounts to a wish list of economic targets for the economy in 2024.

For yet another year, China has issued what amounts to a wish list of economic targets for the economy in 2024.

Albemarle is looking to raise more than $US2.1 billion (over $A3.2 billion) in a share issue to investors as it seeks to maintain high levels of liquidity to ride out the current downturn in demand for lithium and the concurrent price slide.

Business inventories wield considerable influence over GDP growth, often introducing unpredictability into economic forecasts.

Foreign bids for Australian companies continue to surge, with significant offers on the table. Saint-Gobain has bid $4.3 billion for CSR, while Japan's Renesas proposes $9.1 billion for Altium. Additionally, there's a $US1.6 billion Indonesian-Australian offer for Illawarra Coal.

China's National Congress this week will consider a new law that will make it next to impossible for economists, journalists, analysts, or researchers, let alone foreign companies, to accumulate data and statistics in China.

As expected, Saudi Arabia will try to maintain upward pressure on oil prices by extending its production cap until the end of June. The Saudi government’s news agency announced on Sunday that the country will extend its voluntary crude production cut of 1 million barrels a day until the end of the second quarter. Saudi Arabia's Ministry of Energy stated that the country’s crude production will be approximately 9 million barrels per day until the end of June.

Back to the economy this week in Australia, after being absorbed in February by the December reporting season here and in the US, especially the rise in AI-related stocks led by Nvidia.

While the December quarter national accounts and GDP numbers will dominate local markets this week, even that important data will take a backward seat to the February US jobs report on Friday.

Three prominent US companies have recently surpassed the remarkable milestone of a $2 trillion market value each. This achievement underscores their significant influence and position within the global economy.