2019/3/29

Friday

Market details

1. the stock market

The Australian stock market was dragged down by the banking sector this week, and pressure dropped.

The S&P/ASX 200 index fell 14.5 points, or 0.2%, to 6180.7 this week, and the All Ordianries index fell 19.2 points, or 0.3%, to 6261.7 points.

However, the quarterly yield rose 9.5%, the strongest quarterly increase in four years.

Shane Oliver, chief economist at AMP, said that the market’s lows in December last year began to rise hard, and it may pull back in the short term, but global growth is expected to improve in the second half of the year.

"It is expected that in the federal budget next Tuesday, interest rate issues will be put on hold again, and we maintain a balanced or neutral opinion on the outlook for interest rates."

It is expected that Monday's CoreLogic data will show that house prices fell again in March, and the NAB business survey in March shows that the situation and confidence continue to be weak.

2. Foreign exchange market

As of 4:00 pm Australian Eastern Time, the Australian dollar was quoted at 0.7088 against the US dollar

As of 4:00 pm Australian Eastern Time, the Australian dollar was quoted at 4.7629 against the RMB

3. Commodities

As of 4:00 pm Australian Eastern Time, the spot gold price was reported at US$1,289.65 per ounce.

Brent Crude Oil Price Report68.09USD/barrel.

The price of iron ore is85.65USD/ton.

Financial Information

Australian job vacancies hit a record high

In the three months ending in February, the vacancy rate in Australia hit a record high. Although the total vacancy rate is still rising, the growth rate has slowed sharply. In the three months to February, vacancy rates increased in New South Wales, Victoria and Western Australia, offsetting declines in vacancy rates in all other states and territories. The largest number of vacancies are in the administrative and support services industries.

According to the Australian Bureau of Statistics (ABS), the quarterly job vacancy rate rose by 1.1% to 244,900, and the annual vacancy growth rate reached 9.2%. This not only indicates that the hiring level will be unstable in the coming months, but also indicates that the possibility of the Reserve Bank of Australia (RBA) to cut interest rates in the near future has slightly decreased.

National Australia Bank NAB economist Kaixin Owyong said, “The data shows that the Reserve Bank of Australia believes that the labor market will continue to improve and offset the drag caused by the reduction in housing activity.”

"Given the slowdown in economic growth, we still believe that the Reserve Bank of Australia is too optimistic about the economic outlook. We expect the bank to implement two 7 basis point cuts in cash interest rates in July and November."

The queen of purchasing extends an olive branch to Napoleon

Purchasing queen Livia Wang and former Witchery executive Henry Lee recently proposed to rescue the Australian local makeup brand Napoleon Perdis that entered the hosting program.

Livia Wang and Henry Lee formed a private investment company, Kuba Investments, which plans to take over Napoleon Perdis cosmetics through a corporate arrangement (DOCA).

It is reported that the company’s offer has not yet been announced, but Simon Cathro, a manager of the bankruptcy management company Worrells, said on Thursday that the proposal will be more favorable than bankruptcy liquidation and will be beneficial to creditors.

Napoleon Perdis owes more than 2200 million Australian dollars in debt. Creditors include ANZ Bank, ATO, Australian Pharmaceutical Industries and Myer. The creditors will meet on April 4 to consider whether to accept the proposal.

Mr. Perdis, the founder of Napoleon Perdis, and his wife Soula-Marie Perdis expressed their support for the transaction and agreed to transfer their shares to Kuba; the couple will continue to serve the company as creative directors.

Debt is twice as much as income! Australian household wealth fell by 2.6 million in three months

According to data from the Australian Bureau of Statistics, household wealth fell by A$2576 billion in the fourth quarter due to the troubled housing and stock markets.

Household wealth fell by 2.1%, the largest drop since 2011. Per capita household wealth fell by A$10,198.10 to A$404,319.80. Taking into account inflation, wealth actually fell by more than A$3100 billion, of which the actual loss of land and residential holdings was A$1700 billion, and financial assets were A$1400 billion.

The housing market’s weakness is accelerating (the house price index fell 2.4% in the fourth quarter) and the ASX fell by about 10% this quarter.

What is worrying is that while household wealth has fallen, the household debt-to-income ratio has reached a new record of 200%. Data show that household disposable income is also falling, from 321.2 billion Australian dollars in the previous quarter, down 2.6% to 312.7 billion Australian dollars. This so-called "wealth effect" in turn killed consumer spending and retail.