Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.

The ratings agency S&P Global Ratings reaffirmed its AAA long-term sovereign credit rating and A-1+ short-term rating for Australia. S&P issued a note saying Australia should avoid a recession amid record low unemployment and elevated commodity prices, even as the economy slows this year amid higher interest rates. The RBA is expected to announce another 25 basis point increase in the official cash rate after its board meeting next Tuesday. S&P said Australia’s ratings were supported by “strong institutions, which … Continue reading “Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.”

Australia Trade Surplus Widened in November to $13.2 billion With Iron Ore Exports Higher 7.9%

Australia posted a trade surplus of A$13.2 billion in November exceeding expectations for a surplus of A$10.5 billion following the A$12.217 billion surplus in October and $12.5 billion in September. The Australian Bureau of Statistics reported exports dipping 0.4 per cent and imports falling 1.5 per cent over the month. The report was amid softening global demand as China battled with a resurgence of coronavirus infections. Australia’s’ leading exports were Metal ores and minerals exports (iron ore) $14,502 billion up … Continue reading “Australia Trade Surplus Widened in November to $13.2 billion With Iron Ore Exports Higher 7.9%”

Australian Consumer Confidence Jumps as Household Inflation Expectations Eased

Weekly Consumer confidence climbed 4.9 points last week to 87.4, starting the new year with the first increase since 2018, ANZ-Roy Morgan consumer survey showed on Tuesday. Inflation expectations dropped from the end of 2022, falling 0.9% to 5%. Its moving average for the last four releases fell 0.3 percentage points to 5.7 per cent. Confidence is still well below the neutral level (100) and the long-run average of 111.7. Highlights Adelaide Timbrell, a senior economist at ANZ. Source: ANZ … Continue reading “Australian Consumer Confidence Jumps as Household Inflation Expectations Eased”

China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM

Australia’s economy will get a big boost from the end to China’s zero-Covid policy over the next two years JPMorgan said in a note Saturday. JPMorgan’s chief investment strategist Tom Kennedy said “The largest potential upside from reopening itself sits within the services sector given China is the largest consumer of Australian tourism and education exports.” JPM sees a full recovery in Australia’s tourism adding 0.5% to its gross domestic product and the return of international students from China will … Continue reading “China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM”

Resilient Australian Stock Market Outperformed in 2022, Supported by Mining and Energy Stocks

Australia’s blue-chip stock index, S&P/ASX 200 ended down 5.45% to 7,038.7 in 2022. On the last day of the trading year the ASX was up +0.3% and -0.9% for the week. This compares to 2021 being up over 13% for the year. Australian shares ended 2022 as one of the region’s more resilient markets with mining firms supporting as globally stocks were pummeled. The end to an era of low interest rates that made borrowing cheap and encouraged investors to … Continue reading “Resilient Australian Stock Market Outperformed in 2022, Supported by Mining and Energy Stocks”

Iron Ore Prices Hit Four Month High on Zero Covid Easing & China’s Property Curve

Benchmark iron ore futures in China gained for a fourth straight week. Iron ore prices have taken a hammering since the Chinese zero Covid policy however it has steadily risen since November lows. Prices for the most actively traded iron ore futures on the Dalian Commodity Exchange for iron ore cargoes with a 63.5% iron ore content for delivery into Tianjin rose to $110 Friday, the highest since mid-August. Analysts were anticipating demand for iron ore to collapse as China … Continue reading “Iron Ore Prices Hit Four Month High on Zero Covid Easing & China’s Property Curve”

Australian Metal Exports Central to Global Energy Transition Set to Double to $33 Billion

Australia already the world’s number one exporter in iron ore, natural gas and coal is set to see its metal exports essential to the global energy transition from fossil fuels double in just over a year to $33 billion. These metals include copper, nickel and lithium. The venerable Resources and Energy Quarterly from the Australian Office of the Chief Economist’s outlook for global commodity prices, demand and supply sees a dramatic surge in Australian exports critical to energy transition.  Australia’s resource … Continue reading “Australian Metal Exports Central to Global Energy Transition Set to Double to $33 Billion”

Australian Unemployment Falls to Lowest Rate in Almost 50 Years

Australia saw stronger than expected employment in October driving unemployment to 3.4 per cent, the equal lowest rate in almost 50 years, according to the latest jobs data from the Australian Bureau of Statistics. Employment grew by 32,200 well ahead of consensus for 15,000 to a new record high of 13.62 million. Australia has very tight labor market conditions, demand is being met by adjusting hours. The latest jobs report followed yesterday’s September quarter wages figures showed a marked uptick … Continue reading “Australian Unemployment Falls to Lowest Rate in Almost 50 Years”

Australian Annual Inflation Highest in Over 32 Years

Australia posted the highest annual inflation rate since Q2 1990 of 7.3% in Q3 of 2022 from 6.1% in Q2, above market forecasts of 7.0%. Prices were boosted by higher prices for new dwelling construction, automotive fuel, and food. The RBA Trimmed Mean CPI jumped 6.1% yoy, the fastest pace since the series began in 2003, exceeding the midpoint of the RBA’s 2-3% target. Quarter-on-quarter, the index gained 1.8%. The Reserve Bank of Australia raised interest rates for the sixth … Continue reading “Australian Annual Inflation Highest in Over 32 Years”

Australia’s Biggest Mortgage Lender CBA Profit Jumps 11pc to $9.6 billion on Home Lending

Australia’s Commonwealth Bank’s full-year cash profit for 2022 rose 11 per cent to $9.6 billion. CBA announced they will raise their dividend with the strength of strong growth in home and business lending and lower bad debts even as interest rates rise. The Reserve Bank of Australia has raised interest rates for the fourth consecutive time to 1.85% in July. Intense mortgage market competition coupled with higher funding costs led to the margin being squeezed lower than the benefit from … Continue reading “Australia’s Biggest Mortgage Lender CBA Profit Jumps 11pc to $9.6 billion on Home Lending”