Business

St George Economics economy and finance update

Share Markets:

US markets were closed for a public holiday which coincided with the inauguration of the US President.

In Europe, the FTSE100 moved ahead on the hope that the US would resolve its short term debt issues.

The German central bank forecast a recovery in Germany during 2013 with growth of 0.4% expected. The German and French markets both rose 0.6% overnight.

Bonds:

The shift towards equities in Europe saw German long bond prices fall (yields rise). Their yield stands at 1.59% compared to the 3.36% yield on Australian ten year bonds.

Foreign Exchange: 

The AUD held in the US$1.05 range overnight after dipping briefly around noon yesterday.

Markets were subdued with no major data being released. The US dollar index was little changed and the euro traded sideways while trade in yen is awaiting the latest announcement from the Bank of Japan.

Commodities:

With US markets closed, commodities had a quiet night. Oil edged higher as did gold but copper fell marginally.

Australia: 

No significant data released yesterday.

Japan:

The Bank of Japan has been meeting and is widely expected to announce changes in policy today.

Further monetary easing, combined with a large government stimulus package, is expected to lift activity in Japan, allow inflation to move up and see the value of the yen fall.

As seen in foreign exchange markets, the yen has weakened against most currencies over the past four months.

Japan appears to need stimulus. Orders for machine tools fell 27.5% over the year to December while sales at convenience stores were down 2.0% over the same period.

United Kingdom:

UK house prices rose 2.4% over the year to January according to Rightmove Plc. In London, the asking price of houses is up 9.6% over the year with 29% more properties on the market than a year earlier.

United States:

The United State celebrated the Martin Luther King Jr. Public holiday yesterday which coincided with the inauguration of the US President.

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


Stay Connected

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

Councillors’ election promise to deliver CBD project questioned

DOUBT: Andrew Antoniolli, Paul Pisasale and Paul Tully announce the lagoon project in February.

Councillors’ election promise to deliver CBD project questioned

Images of our shameful past

FOUND: Wade Thompson and Henry Thompson Jr at the Deebing Creek Mission Cemetery.

Images of our shameful past

Show out to deliver the thrills

The Safari Zoo is expected to be a big attraction for the kids.

Show out to deliver the thrills s

Latest deals and offers

BREAKING: Man accused of indecently assaulting health worker

Police have arrested the man who they say entered a health facility armed with a knife and then indecently assaulted a female staff member.

UPDATE: Dramatic in-car footage as Raceway car goes airborne

Dramatic Aussie Car rollover at Queensland Raceway on Saturday.

In-car footage shows dramatic high-speed crash

WATCH: Police hunt gunman as shots fired in quiet street

One of the shots shattered the windscreen of a gold coloured Holden Commodore that was parked in the driveway, while another pierced the garage door.

Police are investigating after shots fired into a car and garage

Jobs Queensland is a 'laughing stock': Bleijie

WHITE ELEPHANT: Jobs Queensland, based in the Ipswich Icon Tower, has created no jobs and has met with ridicule from the LNP.

Labor project struggling to get off the ground

Laughs aplenty as 'legends' put on show for fans

SHOW BOAT: Ipswich legend Chris Walker still had a bit of pace to show off amongst the older legs of the Queensland team.

Legends put on rugby league showcase

Burning rubber draws thousands

Fans at the Coates Hire Ipswich SuperSprint on Saturday.

SuperSprint a noisy thrill for young and old at Queensland Raceway

Licking incident bars Ariana from performing at White House

Ariana Grande has been blocked from performing at the White House

Taylor Swift's ex throws support behind Kanye West

Calvin Harris shares a sing-along with Kanye West

Michael Jackson's jailed doctor wants his license back

Conrad Murray wants his medical licence back.

Pokemon Go: "Trading" on the horizon as game evolves

No Caption

Pokemon GO players will soon be able to trade with other trainers

Bindi Irwin: ‘I’ve lived 10 lives in one lifetime’

Bindi meets her fans.

SHE'S just turns 18 but Bindi's life has been full of experiences

Rockhampton cook through to MasterChef semi-final

FAMILY:MasterChef semi-finalist Harry Foster pictured with his mum Ria McClelland.

Harry Foster through to MasterChef semi-finals.

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

The climb is slow but property on the way up

Michael Matusik, director of Matusik Property Insights.Photo Allan Reinikka / The Morning Bulletin

The improvement would be mild when compared to past cycles