The January labour market data surprised market analysts and on a seasonally adjusted basis unemployment rose to 6% which was higher than the RBA outlook of trending below 6%. It is interesting to compare January 2015 unemployment data with January this year. The participation rate is higher at 65.2% compared to 64.8% a year ago and unemployment then was at 6.4%. So the Aussie labour force data is not bad at all - it is just that the analysts were expecting the number to be below 6%. We think it is still early for RBA to consider a rate cut - but data on GDP and capex will be watched to see if the numbers present a reflection of the economy weakening.
stocks rebound but for how long
On a week by week basis to close of trade Friday 19/2, global stocks have rebounded this week with the Dow Jones industrial average gaining 2.6%, the ASX 200 was up by 5.4% and the Shanghai Composite which triggered the spectacular stock market crash in January gained 3.49%. Meanwhile China has appointed a new securities regulator replacing Xiao Gang. Analysts say that the circuit breaker in the stock market which was deployed twice in January before being scrapped completely under Xiao's leadership was unnecessary and sent the market into panic mode and caused such a widespread stock sell off. Liu Shiyu was appointed the new head. Liu was previously the vice governor of PBoC before becoming the Chairman of the third largest lending institution, the Agricultural Bank of China.
crude price fall hurts santos and woodside
With Brent Crude prices falling to record lows, Australia's oil company bottom lines have reported spectacular losses. Revenues were down 20% at Santos and for the 12 months to December 2015, the loss was reported at AUD 2.7 billion. Brent crude prices have fallen more than 45% during this period. Woodside Petroleum, Australia's largest independent oil company also reported a fall in its net income to AUD 26 million from AUD 2.41 billion a year ago, a fall of nearly 90% on a year on year basis.
market data update
| Australia Cash rate Australia 90 day bank bill Australia 10 y bond US 10y Govt bond AUD/USD AUD/EUR AUD/JPY AUD/CNY ASX 200 S&P 500 Dow Jones Shanghai Composite Brent Oil (USD per BBL) Gold Spot (USD per oz) | As at 19-Feb 2.00 2.28 2.43 1.74 0.7107 0.6387 80.2 4.6338 4952.8 1917.78 16391.99 2860.02 33.01 1226.8 | As at 12-Feb 2.00 2.28 2.42 1.75 0.7104 0.6288 80.08 4.6704 4698 1864.78 15973.84 2763.49 33.36 1237.29 |
RSS Feed