Housing Data Finishes 2020 in Fine Style
Another boom month in what turned out to be a boom year for housing construction and finance. After COVID, who woulda thunk that?
Read MoreEconomics
Low(e) Rates to Persist, Says RBA Governor
RBA Governor Philip Lowe sees the current record low level of interest rates of 0.10% and other support remaining in place until 2024 at least and possibly 2025.
Read MoreAdditional $100bn in QE the Only Surprise from the RBA
The RBA kept official interest rates and the key bank lending support measure unchanged at its first meeting of the year, but surprised with news that it will boost its quantitative easing by another $100 billion in April.
Read MoreRBA Set to Stand Pat on Strong Housing Hand
News Monday that confirmed housing is booming with house prices starting 2021 on the up and housing finance ending 2020 very much on the up is unlikely to change thinking at the RBA for today’s first policy meeting of the year.
Read MoreEconomics Wrap: All Eyes on the RBA
Local markets will be watching the Reserve Bank closely this week for an update on how the country’s main economic policymakers view the coming year.
Read MoreDiary: US, China Release Key Economic Data
The US shares the spotlight with China in the week ahead, with both countries reporting data that will likely set the scene in markets for the next few months.
Read MoreSeven Key Charts for Investors to Watch
AMP Capital’s Dr Shane Oliver breaks down markets across the spectrum and around the globe in his weekly Insights column.
Read MoreBenign Oz CPI Looks Set to Keep RBA Idle
No concerns about rising inflation from the December Consumer Price Index data released yesterday, with the headline CPI rising 0.9% in the December 2020 quarter and by the same amount for the 2020 calendar year.
Read MoreIMF Optimism Confirmed by NAB Data
The optimistic outlook for the Australian economy this year from the International Monetary Fund has been supported by the first business conditions and confidence survey for the year from the National Australia Bank.
Read MoreIMF Sees Aussie Economy Rebounding in 2021
The IMF reckons the Australian economy will grow by enough in 2021 to regain its pre-COVID level by the end of the year before slowing in 2022.
Read MoreCOVID Resurgence Drags South Korean GDP to 20-Year Low
COVID saw the economy in South Korea – one of Australia’s top five export destinations with products dominated by iron ore, copper, coal and meat and some grains – hit a 20-year low in 2020 as the economy lost steam amid a resurgence of coronavirus infections and lockdowns.
Read MoreAsian Shares Fall on Monetary Moves, Regulatory Rumblings
Share markets across Asia were lower after comments and a out of character move by China’s central bank in money markets sparked concerns of a tightening in policy and a more stringent approach to risks in the financial system.
Read MoreEconomics Watch: Oz CPI, US Fed Meeting Overshadow All Else
An in-depth look at all the key economic drivers and their potential effects on local and global markets this week.
Read MoreCommodities / Currencies / Economics / Fixed Interest / Funds / Interest Rates / Markets / Shane Oliver
US Political Protests, Inflation and Rising Bond Yields
AMP Capital’s Dr Shane Oliver breaks down markets across the spectrum and around the globe in his weekly Insights column.
Read MorePart-Time Jobs Soften Unemployment Blow
Thanks to a boom in part time jobs, unemployment ended the difficult 2020 calendar year well below the 8% rate forecast by the Reserve Bank in its fourth and final Statement on Monetary Policy last November.
Read MoreChina 4Q20 GDP Beats Expectations, Sets Scene for Strong 2021
China’s GDP was up 6.5% year-on-year for the December quarter, much stronger than the 6.1% forecast by economists and well up on the 4.9% growth in the previous period.
Read MoreMoody’s Reacts Positively to Biden Package
Credit rating group, Moody’s has given an upbeat and thumbs up approval for the Biden package. Moody’s chief economist, Mark Zandi reckoned it will boost US growth this year to 5% or better, and the same in 2022.
Read MoreBiden Announces $US1.9t Rescue Plan
President-elect Joe Biden will ask Congress to spend $US1.9 trillion on a new economic rescue plan as the pace of COVID-19 infections and deaths shows no sign of easing soon and the US economy starts tipping towards another slowdown.
Read MoreChina Announces Record Trade Surplus
China ended 2020 with a rush as it notched up two of its biggest ever trade surpluses in November and December, posting a surplus of $US78.17 billion in December and topping the previous peak in November of $US75.40 billion in November.
Read MoreABS Job Figures Show Unexpected Resilience
Further evidence yesterday that the Australian labour market is doing better than anyone thought for most of 2020 with news from the ABS that job vacancies have regained pre-pandemic levels.
Read More2021 – A List of Lists Regarding the Macro Investment Outlook
2020 turned out far better for diversified investors than had been feared when the pandemic hit, with average balanced growth superannuation funds looking like they have returned around 3%. This followed around 15% last year. But can returns hold up?
Read MoreMarket Update 8 January 2021
Plenty of news and developing stories to start the new year. Here’s the key ones to keep an eye out for.
Read MoreBig Week in Store for Chinese Economic Data
A big week ahead for the Chinese economy with confirmation it was the standout performer in 2020 with GDP, production, investment, retail sales and inflation data to show another round of improvement.
Read MoreServices, imports help limit trade surplus damage
A solid performance from services and better import figures have helped soften the fall in the physical goods trade surplus for November.
Read MoreOz housing approvals hit 20-year high
Data from the Australian Bureau of Statistics (ABS) revealed that housing approvals hit their highest level in 21 years in November while the value of renovations sat at an all-time high in the same month.
Read MoreChina manufacturing comes off the boil
Some signs of cooling in China’s huge manufacturing sector as it ended a chaotic 2020 in December, according to the first survey of activity for the month from the country’s National Statistics Bureau on New Year’s Eve.
Read MoreOz trade surplus falls under $2b for first time in 2 years
For the first time in two years, Australia’s goods trade surplus sank under the $2 billion level, according to the Australian Bureau of Statistics (ABS). And you can blame China for that fall – both on the export and the import side.
Read MoreOptimistic sales data may be an early Xmas present for retailers
The preliminary retail sales data for November on Tuesday helps explain why a number of retailers continue to provide larger than expected sales growth updates.
Read MoreVirus Damage Only A Flesh Wound As Household Wealth Hits New High
Believe it or not but the pandemic and the worst recession Australia has experienced in 90 years have not damaged Australia’s national finances (yet). In fact a glancing blow over two quarters might be the surprising conclusion from the latest data from the Australian Bureau of Statistics.
Read MoreABS Adjusts CPI To Reflect Grounded Travel Industry
COVID-19 will mean the December quarter Consumer Price Index to be released on the last Wednesday in January, will have a different look to the one released in late October for the September quarter.
Read MoreMid-Year Economic and Fiscal Outlook – peak deficit has likely been seen
The key is that the Government has successfully protected the economy, and this has enabled it to rebound faster than if budget support had not been provided.
Read MoreMYEFO Confirms Strong Rebound But Pressures Remain
This year’s federal budget bottom line has improved by $16 billion in the past 10 weeks, but the country still faces continuing deficits, higher unemployment, and rising debt due to the coronavirus pandemic.
Read MoreJobless Rate Drops To 6.8% In November
The strong recovery in full-time employment in October continued into November, albeit at a slower pace, especially outside Victoria.
Read MoreFed Upgrades Outlook But Promises Continued Support Until “Substantial Progress” On Recovery
The US Federal Reserve’s post-meeting statement looked bullish at first glance, and yet the market reaction was muted.
Read MoreChina House Price Growth Cools For Second Month
Growth in China’s new home prices grew fell to their slowest monthly pace in November since March of this year. The slowing supports the idea that Chinese regulators have succeeded in containing a break out in property prices for the time being.
Read MoreMYEFO To Confirm Peak Deficit, Peak Debt Still To Come
An update to the outlook for the Australian economy is due this week in the Federal Government’s Mid-Year Economic and Fiscal Outlook (MYEFO) which is due for release in the next few days.
Read MoreChina Car Sales Near 2019 Levels Despite Virus Speed Bump
With a month to go, China’s vehicle sales are on track to hit 25.3 million units this year as sales of electric vehicles in particular rise sharply.
Read MoreChina Deflates In November As Food Prices Correct
For the first time in years, China’s CPI and PPI fell in the same month – there’s no concern, yet, but be wary if we have a repeat this month.
Read MoreBusiness Conditions, Confidence Reclaim Pre-Pandemic Levels
Business conditions and confidence rose strongly in November and are now back above pre-pandemic levels according to the National Australia Bank’s latest monthly business survey.
Read MoreChina Commodity Imports: Copper, Iron Ore Ease While LNG Lifts
China’s imports of key (and sensitive) commodities were again at solid levels in November, though iron ore and copper fell from October levels, they were still higher than a year ago.
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