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.

Business owner, 71, hunts down graffiti artists

Graffiti damage at Barry Mills' business.

They saw three men spray tags on the Ipswich property

STABBING: Man rushed to hospital with chest wound

Police at the scene of an apparent stabbing at Redbank Plains this afternoon

Police investigate apparent domestic incident

Woman's $27k property crime spree

Ipswich Police Station and Courthouse. Photo: David Nielsen / The Queensland Times

She targeted homes she knew had valuable items inside

Local Partners

EXCLUSIVE: Meet Robert Irwin, wildlife photographer

SNAPPER: Apart from wildlife, photography is Robert Irwin's great passion.

Steve's boy has a passion for photography

Louis Tomlinson's tribute to late mother

Louis Tomlinson's new single is a tribute to his late mother.

Justin Timberlake stuns students with secret class

Justin Timberlake stunned high school students in Sydney

Carrie Fisher says Ford will be bugged by affair confession

Carrie Fisher is sure Harrison Ford is annoyed at her

Dakota Fanning rekindles romance with childhood sweetheart

Dakota Fanning rekindles romance with ex

Jennifer Lawrence apologises to the people of Hawaii

Jennifer Lawrence sorry for 'offensive' story

Essential to get new Maroochydore CBD fundamentals right

LOOKING AHEAD: The central business district at Maroochydore is planned to be the heart of the Sunshine Coast.

SunCentral reports good progress on 53ha Sunshine Coast city heart

'Crucial' farm land eyed by defence department

Lawson Geddes moving the Brangus cattle to higher ground - which is the land the Defence Department is interested taking for the Shoalwater Bay expansion.

"You can't have one without the other.”

Former Shark Show for sale for $1.3 million

Vic Hislop at the old Shark Show.

TALK about a jaws-dropping real estate opportunity.

There's a whole lot of luxury in this home

The Endeavour Foundation's latest prize home in Mountain Creek.

WHEN it comes to desirable homes, it's hard to go past a prize home.

Ipswich City Properties asset portfolio retains its value

Ipswich City Council Administration Building, South Street, Ipswich. Photo: Claudia Baxter / The Queensland Times

New website launched by Ipswich City Council

Ready to SELL your property?

Post Your Ad Here!