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


Stay Connected

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

Ipswich man guilty of sodomising 15yo girl: Appeal failed

Young Ipswich man fails to appeal sodomy conviction

Greyhound trainer sticks by guilty plea

SENTENCE PENDING: Tom Noble leaves Ipswich District Court.

Tom Noble won't use illegal tapes as live baiting defence

Device a helmet, not a spit mask, says Minister

The 17-year-old surrounded by officers in the Brisbane Correctional Centre in 2013. (Supplied)

Restraint used on 17-year-old inmate at Wacol, near Ipswich

Latest deals and offers

Greyhound trainer sticks by guilty plea

Greyhound trainer Tom Noble sticks by guilty plea

Sentencing in "complex" live-baiting case pushed back

A protester outside Ipswich courthouse where Tom Noble will be sentenced on animal cruelty charges.

Racing identity Tom Noble to learn his fate next Tuesday

Explained: What are those two extra bright evening 'stars'?

Kingaroy astronomer James Barclay captured these images of Venus and Jupiter appearing low and bright in the sky this month.

The two stars you are seeing around sunset aren't stars at all.

Accused tortured woman for days, court told

Court hears details of alleged torture, rape, assault charges

Master Builders admit to "pessimism" as economy struggles

Heat comes out of the Qld building industry

Die-hard fan's 34 magic Gympie Muster years

STICK AROUND FOR A BEER: Mal Williams has been at every Gympie Muster for 34 years.

Mal Williams has only missed one Muster in 35 years - the first one

Mexican band takes aim at Trump

Disguised as unhinged narcotraficantes, the Mexican-American agitators of BRUJERIA captured the mood of the citys minorities with the bands infamous and widely banned 1993 debut, Matando Geros (Killing White People), quickly becoming the Spanish-language counterparts to early grindcore masters TERRORIZER and NAPALM DEATH.  Photo Contributed

'Satanic drug lord' band challenges Trump

Willy Wonka star, Gene Wilder dead at 83

A still of Gene Wilder in the 1971 film Willy Wonka and the Chocolate Factory

Social media has already lit up with tributes to the late actor.

Gladstone couple's spontaneous Gympie Muster wedding

Craig Oglesby and Brenda Strong celebrate their wedding at the Gympie Muster with punters in front of the Main Stage.

The Gympie Music Muster was the perfect place for a wedding.

Australian Survivor's Peter: I'm no quitter

Australian Survivor contestant Peter Fiegehen.

ILLNESS forces castaway's early exit from Samoa.

Diva's sister on soliciting charge

FILE - In this May 14, 2016 file photo, Mariah Carey attends the 27th Annual GLAAD Media Awards, in New York. Carey will appear on the Oct. 5 episode of the Fox series, \"Empire,\" the network confirmed Monday at a TV critics bi-annual press tour. (Photo by Charles Sykes/Invision/AP, File)

Mariah Carey's sister has been arrested on charges of prostitution.

Tom Cruise private jets his gym kit around the world

Tom Cruise

Tom Cruise charters private to take his gym kit around the world

Palm Lake Resort set to move in to Coast with 276 villas

Palm Lake Group has been given approval by Sunshine Coast Council to build a 276-villa over 50s resort and 120-bed aged care facility at the intersection of Caloundra Rd and Caloundra Mooloolaba Rd in Little Mountain.

New facility planned for Caloundra Rd

Warning for unit investors with price plummet prediction

The warning signs are flashing for one real estate sector in 2017 despite others performing the best they have in years and it's not going to be pretty.

One real estate sector looks set for a rocky 2017

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m