Business

St George Economics economy and finance update

Share Markets:

Following a solid run in recent weeks, US equity markets took a breather last night. There was no new economic news and European markets were equally lacklustre.

Bonds:

With equities flat, bonds remained in a very tight range overnight. German 10 year bond yields closed unchanged at 1.96% while US long bonds saw yields edged up 1 basis point to 1.96%. Australian 10 year bond yields now stand at 3.45%.

Foreign Exchange:

Comments out of Europe and Japan stirred markets last night. Talk of 'currency wars' has unsettled some players to the point where the G7 appears set to release a paper reiterating their combined belief in market determined exchange rates.

An ECB council member Jens Weidmann expressed his belief that the euro had not become overvalued while Japan's Economy Minister suggested that Japan had further to go in easing monetary policy.

The US dollar gained against yen, moved lower against the euro and was marginally stronger against the AUD overnight.

Commodities:

Oil prices rose for the first time in four days more on currency movements than on news about the global economy or supply issues.

Both copper and gold prices slipped lower pulling the overall commodities index down.

Australia:

Housing finance fell 1.5% in December, driven by a decline in refinancing and a fall in first home buyer demand (due to changes to first home buyers' grants in NSW and Queensland).

Excluding refinancing, new home loans slipped 0.1% in December, although it was the third consecutive monthly decline in this measure.

Although the weakness in December's housing finance may have been exacerbated by temporary factors, it appears likely the demand for housing finance has tapered off in recent months.

China:

No data released.

Europe:

No data of note released.

Japan:

According to the head of the Asian Development Bank, recent actions by the Bank of Japan to ease monetary settings could usher in significant growth for the Japanese economy.

Japan's Economy Minister, Akira Amari has noted that Japan has room to further ease monetary policy.

The Minister appears to be in the running to become the next head of the Bank of Japan.

United States:

No data of significance released.

Please read the disclaimer below (to enlarge, press ctrl-+ on modern browsers)

The information contained in this report (the Information) is provided for, and is only to be used by, persons in Australia. The information may not comply with the laws of another jurisdiction. The Information is general in nature and does not take into account the particular investment objectives or financial situation of any potential reader. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and is not an invitation to take up securities or other financial products or services. No decision should be made on the basis of the Information without first seeking expert financial advice. For persons with whom St.George has a contract to supply Information, the supply of the Information is made under that contract and St.George's agreed terms of supply apply. St.George does not represent or guarantee that the Information is accurate or free from errors or omissions and St.George disclaims any duty of care in relation to the Information and liability for any reliance on investment decisions made using the Information. The Information is subject to change. Terms, conditions and any fees apply to St. George products and details are available. St.George or its officers, agents or employees (including persons involved in preparation of the Information) may have financial interests in the markets discussed in the Information. St.George owns copyright in the Information unless otherwise indicated. The Information should not be reproduced, distributed, linked or transmitted without the written consent of St.George.

Topics:  economy, finance, st george


Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Concerns over vote on marina

SPEAKING OUT: Save Our Foreshore supporters protesting at Shute Harbour yesterday: Kerry McCourt, Rory McCourt, Eric Oliver, Sandra Williams, Andrew Marshall, Cherry Muddle, Faye Chapman, Barb Dodge, Yvonne Chaloner, Peter Craig, Nathasha Jochim, John Hill, Mandy Matthews, Barb Adamson, Robina Mealey, Andrew Crook, Dawn Craig (back), Suzette Pelt, Alison Mason, Leonie Lovell, Jacquie Sheils, Christina Della Valle and Jo Fraser (front).

Concerns over vote on marina

Empty resorts ‘a blight’ on region

CONCERNED: Dr Steven Miles, Minister for Environment, National Parks and the Great Barrier Reef.

Empty resorts ‘a blight’ on region

100th entry for Hamo race week

CENTURY: The 40-footer Satori is the 100th entry for Audi Hamilton Island Race Week 2016. Photo: Charter Yachts Australia.

100th entry for Hamo race week

Latest deals and offers

Faster internet for Whitsundays

SLOW internet is set to become a thing of the past, with the National Broadband Network ready to roll out from next week.

Concerns over vote on marina

SPEAKING OUT: Save Our Foreshore supporters protesting at Shute Harbour yesterday: Kerry McCourt, Rory McCourt, Eric Oliver, Sandra Williams, Andrew Marshall, Cherry Muddle, Faye Chapman, Barb Dodge, Yvonne Chaloner, Peter Craig, Nathasha Jochim, John Hill, Mandy Matthews, Barb Adamson, Robina Mealey, Andrew Crook, Dawn Craig (back), Suzette Pelt, Alison Mason, Leonie Lovell, Jacquie Sheils, Christina Della Valle and Jo Fraser (front).

Concerns over vote on marina

Empty resorts ‘a blight’ on region

CONCERNED: Dr Steven Miles, Minister for Environment, National Parks and the Great Barrier Reef.

Empty resorts ‘a blight’ on region

100th entry for Hamo race week

CENTURY: The 40-footer Satori is the 100th entry for Audi Hamilton Island Race Week 2016. Photo: Charter Yachts Australia.

100th entry for Hamo race week

Festival a wonder in 20th year

GOOD TIMES: Mel and Neave Mclaren with Chantal and Nash Burrows, Kylie Shepherd-Smith, Nate Armitage, Mark Shepherd-Smith, Sera Armitage, Charlotte Tatterson, Dean Armitage, Jim McLaren and Michelle and Brett Tatterson at Wintermoon.Photos: Peter Carruthers

Festival a wonder in 20th year

MP says budget will help reef, roads and young jobseekers

Member for Dawson MP George Christensen.

State MP criticises introduction of backpacker tax

What's on in the region this long weekend?

Wintermoon Music Festival, Camerons Pocket, April 30th- May 3rd, 2015. Photo Lee Constable / Daily Mercury

Take a look at what's on in the region this long weekend.

Dash Cam of Head-on Crash

Head-on crash after overtaking in fog.

Disaster as driver overtakes in fog at night.

Spirit of Tasmania Ferry in Rough Seas

Rough seas toss ferry around.

Passengers scream as ferry rides through high seas.

Spectacular Crash as Corvette Flips at Drag Races

Corvette flips at 350kmh.

Driver walks away from 350kmh crash in Texas.

Sales underway at exclusive real estate locations

Funnel Bay, a 55 acre waterfront development, is six minutes from the main street of Airlie Beach. Photo Lucy Smith / Daily Mercury

Residential blocks costing up to $2.25 million

Demand for acreage lots pushes up property prices

Property values in Cooroy have increased 25%

Property values jump in Cooroy and Peachester.

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog