Markets

A KODAK MOMENT: Top regulator warns there’s a massive tech problem building up in Australia’s banking industry

The head of Australia’s banking regulator says domestic banks have under-invested in key infrastructure for years. In a speech today, APRA chief Wayne Byres strongly recommended that domestic lenders boost investment to improve processes. Byres also highlighted the challenges faced by regulators in an environment of rapid technological changes. And […]
A KODAK MOMENT: Top regulator warns there’s a massive tech problem building up in Australia’s banking industry
Markets

There’s been a big new buyer of US government bonds in 2018

Morgan Stanley says US households have purchased almost half of the government’s total treasury supply in 2018. It marks a sharp turnaround from previous years, when households were often net-sellers of treasuries. The US government has an extra need for new funding following the rollout of the Trump administration’s tax […]
There’s been a big new buyer of US government bonds in 2018
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 26,743.50 +86.52 (+0.32%) S&P 500: 2,929.65 -1.10 (-0.04%) AUD/USD: 0.7267 -0.0024 (-0.33%) ASX200 SPI futures (September contracts): 6,169 (-23) 1. There’s a mild risk-off tone in markets to start the week, with traders selling the Aussie dollar at the open this morning. Trade tensions […]
6 things Australian traders will be talking about this morning
Markets

6 things Australian traders will be talking about this morning

Good morning and happy Friday. To the scoreboard: Dow: 26,661.72 +255.96 (+0.97%) S&P 500: 2,932.58 +24.63 (+0.85%) AUD/USD: 0.7291 +0.0027 (+0.37%) ASX200 SPI futures (December contracts): 6,188 (+22) 1. US stocks rose strongly to new record highs overnight, as markets continue to shake off escalating trade tensions around the globe. […]
6 things Australian traders will be talking about this morning
Markets

ASIC is blocking ICOs as its crypto crackdown starts to gather steam

ASIC has prevented five ICOs from launching in Australia since April. The regulator was granted additional powers in April under Australian consumer law. ASIC has also used regulatory powers established last September to halt a crypto-based managed investment scheme. The Australian Securities & Investments Commission (ASIC) announced today that it […]
ASIC is blocking ICOs as its crypto crackdown starts to gather steam
Markets

China’s premier just ruled out currency manipulation as a trade war tactic

Chinese Premier Li Keqiang said authorities won’t intentionally lower the renminbi in response to US sanctions. China’s currency has already fallen by around 9% against the USD since April this year. Following Li’s comments, the Australian dollar has pushed higher against all the major pairs in afternoon trade. Chinese premier […]
China’s premier just ruled out currency manipulation as a trade war tactic
Markets

The CBA thinks Sydney property values can fall 10%

CBA says Sydney house prices will decline steadily until the end of 2019, with fall of 10.1% from peak to trough. New modelling by economist Gareth Aird predicts house prices based on four key variables. Aird doesn’t expect a hard landing for house prices, largely because the broader economy continues […]
The CBA thinks Sydney property values can fall 10%
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 26,154.67 +8.68 (+0.03%) S&P500: 2,904.98 +0.80 (+0.03%) AUD/USD: 0.7413 -0.0001 (-0.01%) ASX SPI futures (September contracts): 6,180 (+6) 1. Markets will start the week still braced for more US-China trade tensions. Reports over the weekend indicate that President Trump is still planning to follow […]
6 things Australian traders will be talking about this morning
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 26,145.99 +147.07 (+0.57%) S&P500: 2,904.18 +15.26 (+0.53%) AUD/USD: 0.7190 +0.0021 (+0.29%) ASX SPI futures (September contracts): 6,158 (+27) 1. US Stocks jumped overnight after US inflation missed forecasts, while there was renewed optimism on emerging markets and US China trade talks. The US dollar […]
6 things Australian traders will be talking about this morning
Markets

Thousands of self-managed super funds are now investing in cryptocurrencies

Indications suggest that self-managed super funds (SMSFs) are taking an interest in cryptocurrency. One crypto exchange told Business Insider it now has “around six or seven thousand” SMSF customers. Multiple exchanges are exploring opportunities with SMSFs, which hold combined assets of almost $700 billion. Cryptocurrencies have caught the eye of […]
Thousands of self-managed super funds are now investing in cryptocurrencies
Markets

Here’s what economists are saying about Australia’s jobs report

August jobs growth in Australia comfortably beat expectations. Today’s data also showed a fall in the underemployment rate – a key indicator for future wage growth. Despite that, most economists agreed that there’s still some way to go before Australian workers see a material pickup in wages. Australia’s labour market […]
Here’s what economists are saying about Australia’s jobs report
Markets

Australia added more than twice as many jobs than expected in August

The Australian economy added 44,000 jobs in August in seasonally adjusted terms, well above forecasts of an 18,000 gain. Overall participation levels edged higher, which left the unemployment rate steady at 5.3%. Quarterly data on the underemployment – people employed who would like to work more hours – fell by […]
Australia added more than twice as many jobs than expected in August
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,998.92 +27.86 (+0.11%) S&P500: 2,888.92 +1.03 (+0.04%) AUD/USD: 0.7168 +0.0043 (+0.60%) ASX SPI futures (September contracts): 6,162 (-17) 1. The S&P500 edged higher overnight, amid reports the US has reached out to China for more high-level trade talks before enforcing tariffs on another $US200 […]
6 things Australian traders will be talking about this morning
Markets

The global stock markets hardest hit by Trump’s trade war

Global markets are on edge, pending further escalations in the US-China trade war. Data from UBS shows that among global stock indexes, China’s CSI300 has been hardest hit since the US first announced trade sanctions in March. Looking ahead, UBS expects the Trump administration to announce a 10% tariff on […]
The global stock markets hardest hit by Trump’s trade war
Markets

Australian business confidence plummets to a two-year low

NAB’s latest business survey showed Australian business conditions rebounded in August. However, confidence around the outlook fell to a reading of +4 – the lowest level since August 2016. Despite that, NAB’s chief economist Alan Oster said key leading indicators are relatively positive for the months ahead. The latest NAB […]
Australian business confidence plummets to a two-year low
Markets

China’s steel exports are set to fall as Trump’s trade war bites

China’s steel exports continued to rise in the first half of this year, despite the introduction of US tariffs on March 23. But CBA expects Chinese steel exports to fall in the second half of the year, amid ongoing trade fears and increased global competition. China’s steel exports just fell […]
China’s steel exports are set to fall as Trump’s trade war bites
Markets

Alibaba chairman Jack Ma announces plans to retire, unveils succession plan

The founder of Chinese online retailing giant Alibaba, Jack Ma, will step down as Chairman on September 10, 2019. Ma will be succeeded by Daniel Zhang, Alibaba’s current CEO. Ma wrote a letter to customers and shareholders explaining his decision. Chinese online retailing giant Alibaba has announced that founder Jack […]
Alibaba chairman Jack Ma announces plans to retire, unveils succession plan
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,916.54 -79.33 (-0.31%) S&P500: 2,871.68 -6.37 (-0.22%) AUD/USD: 0.7105 -0.0097 (-1.35%) ASX SPI futures (September contracts): 6,108 (-23) 1. Key US jobs data beat forecasts on Friday night, but the focus was on wage growth which rose to 2.9% y/y — the fastest pace […]
6 things Australian traders will be talking about this morning
Markets

The emerging market currencies most at risk of further falls

The MSCI emerging markets currency index has fallen by 8.5% from its 2018 highs. Capital Economics said EM economies with a current account balance are most at risk of further declines. When it comes to the outlook for emerging market currencies, look to the balance of payments. Capital Economics says […]
The emerging market currencies most at risk of further falls
Markets

Bitcoin has fallen by $US1,000 in a day

Bitcoin fell sharply overnight, then prices slumped by another $US500 in Asian trade to around $US6,400. Multiple analysts have pointed to operational changes at Shapeshift – a previously anonymous exchange – as one of the main catalysts. Technical strategists said BTC would have to fall below $US5,600 before another substantial […]
Bitcoin has fallen by $US1,000 in a day
Markets

How fast is Australia’s working-age population growing? This fast.

Australia’s working-age population has grown at twice the level of the US and UK since 2011. Working age is generally defined as those aged 15-64 years. Nikko analyst Chris Rands says a positive connection can be drawn between working age population and economic growth. Australia’s working age population has grown […]
How fast is Australia’s working-age population growing? This fast.
Markets

The ASX just had its biggest fall in nearly 6 months

The ASX200 fell by 1% today for the first time since March 23, with heavy falls in mining stocks. Richard Coppleson from Bell Potter Securities is very cautious on the current market. Coppleson said the ASX could be in for a “nasty month”, and said the index may fall back […]
The ASX just had its biggest fall in nearly 6 months
Markets

Chinese economic growth remains on a ‘downward trajectory’

Non-government Caixin data showed activity in China’s services sector fell to a 10-month low in August. Caixin’s head of macroeconomics said the result shows stimulus efforts by the Chinese government are “yet to kick in”. It follows data on Chinese manufacturing activity on Monday which fell to a 13-month low. […]
Chinese economic growth remains on a ‘downward trajectory’
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,964.82 -22.10 (unchanged) S&P500: 2,901.52 +0.39 (unchanged) AUD/USD: 0.7213 +0.0024 (+0.33) ASX SPI futures (September contracts): 6,297 (-3) 1. Global stocks traded flat in a quiet session with US markets closed for a holiday overnight, but investors remain on edge amid ongoing trade tensions […]
6 things Australian traders will be talking about this morning
Markets

Australia’s jobs market is now more ‘vulnerable’ to negative shocks

Monthly job ads data from ANZ shows the number of new Australian job advertisements fell in August. When smoothed out for monthly volatility, ANZ said the data indicates the unemployment rate is unlikely to fall quickly from here. In additions, employment growth ismore vulnerable to external risks such as political […]
Australia’s jobs market is now more ‘vulnerable’ to negative shocks
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,964.82 -22.10 (-0.09%) S&P500: 2,901.52 +0.39 (+0.01%) AUD/USD: 0.7192 -0.0073 (-1.00) ASX SPI futures (September contracts): 6,330 (+26) 1. Ahead of a big week of local data, traders will be watching the Aussie dollar after it fell below US72 cents on Friday night for […]
6 things Australian traders will be talking about this morning
Markets

Australia’s construction outlook ‘remains fairly weak’

Building approvals fell by 5.2% in July in seasonally adjusted terms, data from the ABS shows. There were sharper falls in Victoria and NSW, partly reflecting monthly volatility from the one-off effect of large apartment developments. Capital Economics said the outlook for construction investment “remains fairly weak”. New building approvals […]
Australia’s construction outlook ‘remains fairly weak’
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 26,064.02 +14.38 (+0.06%) S&P 500: 2,897.52 +0.78 (+0.03%) AUD/USD: 0.7336 -0.0001 (-0.01%) ASX200 SPI futures (September contracts): 6,270 (-6) 1. It was a quiet night on global markets as US stocks finished flat, after the S&P 500 briefly touched 2,900 for first time amid […]
6 things Australian traders will be talking about this morning
Markets

Something isn’t adding up in the Australian economy

ANZ’s consumer confidence index bounced back last week, but the “time to buy a household item” subindex fell again. It now sits below its long-run average, and other key data backs up the argument that Australians are showing a clear aversion to big-ticket purchases. Along with low wage growth and […]
Something isn’t adding up in the Australian economy
Markets

2 charts which show how trade protectionism hurts the global economy

The Bank for International Settlements has raised its concerns about ongoing trade wars and protectionist measures among major economies. BIS general manager Agustin Carstens said globalised economies – including the US – are ill-equipped to prosper if trade links are cut off. Carstens added that protectionist measures could set off […]
2 charts which show how trade protectionism hurts the global economy
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,790.35 +133.37 (+0.52%) S&P 500: 2,874.69 +17.71 (+0.62%) AUD/USD: 0.7325 +0.0079 (+1.09%) ASX200 SPI futures (September contracts): 6,220 (-1) 1. US Fed chair Jerome Powell’s much-anticipated speech on Friday night was the main catalyst for market moves to end the week. Powell said the […]
6 things Australian traders will be talking about this morning
Markets

There are signs Australia’s housing downturn is now dragging on the economy

Quarterly data from ANZ showed Australia’s housing market dragged on economic activity in the June quarter. The “Stateometer” showed trend growth decelerated in Australia’s four largest states, which account for 90% of GDP. Falling property prices are now weighing on economic sentiment across Australia, according to the results from ANZ’s […]
There are signs Australia’s housing downturn is now dragging on the economy
Markets

Traders are selling the Australian dollar amid political chaos in Canberra

The Australian dollar has slumped below US73 cents this morning amid more political chaos in Canberra. Westpac’s Sean Callow told BI the falls are unlikely to be sustained, although the decline does look “unusually clear” at the moment. A short time ago, the Liberal party voted to adjourn parliament for […]
Traders are selling the Australian dollar amid political chaos in Canberra
Markets

2 signs the biggest part of Australia’s economy is holding up for now

Two data points this morning – NAB’s Cashless Retail Sales data and Westpac’s Leading Index – were both cause for cautious optimism on Australia’s economy. The RBA is still positive on the outlook for domestic consumption – which comprises 60% of GDP — a view reinforced in yesterday’s board minutes. […]
2 signs the biggest part of Australia’s economy is holding up for now
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,822.29 +63.60 (+0.25%) S&P 500: 2,862.96 +5.91 (+0.21%) AUD/USD: 0.7367 +0.0027 (+0.37%) ASX200 SPI futures (September contracts): 6,240 (-19) 1. Global risk appetite improved overnight, as US stocks rose to a new record high before closing slightly lower. But after political uncertainty sparked heavy […]
6 things Australian traders will be talking about this morning
Markets

With Canberra in chaos, the ASX is sinking

The ASX200 is down almost 1% in midday trade following another wild morning in federal politics. While not linking the decline directly to events in Canberra today, Richard Coppleson from Bell Potter Securities says markets loathe political uncertainty and the volatility will weigh on sentiment. Chris Weston – Head of […]
With Canberra in chaos, the ASX is sinking
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,758.69 +89.37 (+0.35%) S&P 500: 2,857.05 +6.92 (+0.24%) AUD/USD: 0.7342 +0.0034 (+0.47%) ASX200 SPI futures (September contracts): 6,311 (-3) 1. US bond yields fell sharply overnight, following reports that President Trump had criticised the Federal Reserve for its commitment to hiking rates. Trump later […]
6 things Australian traders will be talking about this morning
Markets

Venezuela just devalued the bolivar by 95% and pegged it to a cryptocurrency

Venezuela has announced another series of desperate measures to try and save its economy from collapse. The government will devalue to Venezuelan bolivar by 95%, and peg it to the government’s oil-linked cryptocurrency. Venezuelan authorities are trying to contain rampant inflation of more than 1,000,000% per year. Venezuelan President Nicolas […]
Venezuela just devalued the bolivar by 95% and pegged it to a cryptocurrency
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,669.32 +110.59 (+0.43%) S&P 500: 2,850.13 +9.44 (+0.33%) AUD/USD: 0.7316 +0.0055 (+0.80%) ASX200 SPI futures (September contracts): 6,327 (+28) 1. US stocks climbed to end the week, amid reports reports the US and China may be working towards a trade deal in November. Trade […]
6 things Australian traders will be talking about this morning
Markets

The next round of US-China trade talks ‘may not amount to much’

Capital Economics is sceptical that further US-China trade talks will lead to a deal. Analyst John Higgins expects stocks in China to fall by another 8% from current levels. Stocks in China will probably fall further despite a glimmer of hope on US-China trade tensions, Capital Economics (CE) says. Global […]
The next round of US-China trade talks ‘may not amount to much’
Markets

6 things Australian traders will be talking about this morning

Good morning. To the scoreboard: Dow: 25,558.73 +396.32 (+1.58%) S&P500: 2,840.69 +22.32 (+0.79%) AUD/USD: 0.7262 +0.0022 +0.30% ASX SPI futures (September contracts): 6,280 (-2) 1. Positive developments yesterday concerning possible US-China trade discussions gave rise to more bullish sentiment on global markets overnight. US stocks recouped the previous day’s falls […]
6 things Australian traders will be talking about this morning
Markets

Here’s what economists are saying about Australia’s jobs report

Economists believe Australia’s labour market remains in a solid position, even though jobs unexpectedly fell in July. While the unemployment rate edged lower, the consensus remains that faster wage growth is still a long way down the track. Economists also provided context around sample rotation, state-by-state results and the outlook […]
Here’s what economists are saying about Australia’s jobs report
Markets

Australian unemployment ticks lower

Total employment in Australia fell by around 3,900 in July in seasonally adjusted, missing forecasts for a gain of 15,000. Despite the headline fall, the unemployment rate edged to the lowest level since 2012, due to a decline in the labour force participation rate. Experts said the result shows that […]
Australian unemployment ticks lower