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.


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.


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


No significant data released yesterday.


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.

Star Jets player turned drug addict found with loaded gun

Jets Rookie of the year turned druggy seeks new life

Murderer used Beerburrum forest as dumping ground

Deceased woman Tia Landers. Her accused murderers have been sentenced to life imprisonment.

Landers wasn't the first person Harris buried in Beerburrum forest

More jobs created by Ipswich investment worth millions

The company has invested $4 million in Ipswich

Local Partners

Shannen Doherty reveals fear of dying in post on chemo

Actor Shannen Doherty shared this image of her lying in a hospital bed after a chemotherapy session.

Actor has been fighting cancer since 2015

Eddie Redmayne's stage fright on latest Harry Potter film

Actor Eddie Redmayne stars in Fantastic Beasts and Where to Find Them.

Actor felt like kid again when he got to film with a wand

Salma Hayek: 'Trump planted story because I turned him down'

Actor Salma Hayek is the latest woman who says U.S presidential nominee Donald Trump acted inappropriately.

Salma Hayek latest woman to accuse Trump of misconduct

Leonardo DiCaprio nearly drowned while filming

Actor Leonardo DiCaprio

Oscar winner almost drowned in Galapagos

Miranda Kerr to wed next year

Supermodel Miranda Kerr

Supermodel and Snapchat founder to wed

What's on the small screen this week

Georgia Love pictured in a scene from The Bachelorette finale.

TWO big reality shows wrap up this week while

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.

What our mayor thinks of the new draft SEQPlan

The plan to use the innovative technology as part of the new Maroochydore CBD was cemented on site today when Mayor Mark Jamieson and Envac Asia Region president Chun Yong Ha formally signed the contract for the $20 million underground waste collection system.

New plan accommodates Sunshine Coast Council's vision for growth.

Dusit Thani finance crisis 'just a small hiccup'

ON TRACK: Springfield Land Chairman, Maha Sinnathamby, Ipswich Mayor Paul Pisasale, Developer Richard Turner and Springfield Land Deputy Chairman, Bob Sharpless, at the recent resort sod turning ceremony.

Property developer says project remains firmly on track