The effect of credit on housing prices
Understanding the effect of credit constraints on housing prices is important for analysing the economy, as well as for setting monetary policy and mortgage lending rules. The focus of this paper is the required down payment on a mortgage, which is usually referred to as a deposit in Australia. One difficulty facing researchers on this…
ASIC cancels registration of 374 SMSF auditors
ASIC has cancelled the registration of 374 auditors of self-managed superannuation funds (SMSFs) who failed to lodge their annual statements. ASIC Commissioner Danielle Press said, ‘SMSF auditors play a fundamental role in promoting confidence and instilling trust in the SMSF sector, which holds more than $865 billion in assets in over 600,000 funds. It is…
CommSec morning report 31 January 2023
In the US, the Dallas Federal Reserve manufacturing activity index rose from -20 to -8.4 in January (survey: -15). European sharemarkets closed mostly lower on Monday after data showed that Spain’s annual consumer prices rose by a higher-than-expected 5.8% in January, the first increase in six months, due to higher fuel prices (survey: 5%). Also…
Evening markets report 30 January 2023
The Australian share market has had a messy start to the week, with the ASX 200 closing 12.1pts or 0.16 per cent lower to 7481.7. While tech and telecommunication services stocks rose most, declines from major miners, healthcare and insurance companies held the index back. Keep in mind that the local market has improved for…
Port MOU to drive energy opportunities with Japan
Premier witnesses signing of Memorandum of Understanding between Pilbara Ports Authority and Japan’s Port of Himeji MOU to help foster collaboration and explore opportunities in the renewable energy supply chain Premier Mark McGowan has today witnessed the signing of a new Memorandum of Understanding (MOU) to boost renewable energy trade opportunities between Western Australia and…
China’s economy stands out in global arena
In its three-year-long fight against COVID-19, China posted outstanding results in economic development and epidemic control, reinforcing its status as a leading engine for the global economy. From 2020 to 2022, China’s economy posted an annual average growth of 4.5 percent, outpacing the world average of around 2 percent, according to Yuan Da, director of…
CommSec morning report 30 January 2023
In the US, personal income rose by 0.2% in December (survey: +0.2%) and spending fell 0.2% (survey: -0.1%). The core personal consumption deflator (excludes energy & food) rose 0.3% (survey: +0.3%) to be up 4.4% on the year (survey: 4.4%). Pending home sales rose by 2.5% in December (survey +0.9%). Consumer sentiment rose from 59.7…
The case for lifting rates in February
Interest rates are almost certain to rise again in February, after the latest Consumer Price Index figures showing inflation hit 7.8% in 2022 – its highest rate in 33 years. The data from the Australian Bureau of Statistics shows a 1.9% increase in the CPI in the December quarter. Combined with the strong increases in…
Undervalued yen presents potential opportunity
The yen was in freefall last year. But the yield curve control (YCC) adjustments by the Bank of Japan (BoJ) in December could be enough to reset that narrative, despite no further changes to policy this month. The yen is still undervalued, and we think the upside potential now outweighs the chance of further depreciation….
4 value stocks for equity investors
Value stocks can be found in many areas of global equity markets, but four areas in particular are catching our attention. 2022 was a difficult year for markets with the MSCI World index returning -18%. Declining markets offer opportunities for stock pickers like ourselves to hunt for bargains that may have become unjustly caught up…
