China interrupted reporting season this weak devaluing its currency peg (the midpoint of where the…
Last week was characterised by risk on for Australian and global equity investors with bond market yields rising (10-Year Australian Government Bond Yield ending the week ~10 basis points higher in yield at 1.985%).
Last week also saw the release of an array of domestic economic data:
– Australian June labour force numbers with employment rising by 7.9k following an upwardly revised 19.2k increase in May. The lift in employment was driven by a rise in full time jobs of 38.4k, partially offset by a fall of 30.6k in part-time jobs. This resulted in a small uptick in the unemployment rate to 5.8%.
– Consumer sentiment fell by 3.0% in July but it is still higher than before the RBA’s May rate cut. Confidence was lower due to the Australian Federal election outcome uncertainty.
– The value of May 2016 housing finance saw the value of all housing-related lending increase by 1.0% over May with the annual growth rate stepping up to 15.4% (largely as lending in May 2015 was soft). While the value of housing loans to owner-occupiers fell by 0.6% (but annual growth remained buoyant), the value of loans to investors lifted by a solid 3.9%. This was after a sizeable fall in April as the banks began to compete in this market once more as the overall growth rate to this segment has fallen below the 10% cap imposed by APRA. Total lending for dwelling-related construction rose by 2.8% in May as a result.
Click below for Interactive Charts