ASX at the close

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets A weaker CNY midpoint fixing and a renewed selloff in Mainland Chinese markets have heightened fears that Friday’s selloff could merely be the beginning of a more significant correction for Chinese equities. Although the Chinese “National Team” looked keen to quell potential fears over

Latest posts


Domainfax: No need to fear housing crash

From Domainfax: Home owners spooked by the cooling market have little fear about a housing crash in 2016. While residential property prices might fall in 2016, it will be limited to less than 10 per cent with “little significant downside risk” to the housing market, ANZ Bank has said in its latest housing update. …It is forecasting a


Dalian iron ore limit down

The news flow today is not much fun for commodities. Adding to the woe is Dalian iron ore futures for May which are down 11 points or almost -4% and limit down as I write and hinting at another record low for iron ore tomorrow, at this stage somewhere in the high $41s… The miners are holding up


Chinese abandon US real estate

From the WSJ: …in recent weeks, some Chinese buyers have started to pull back, scared off by China’s stock-market selloff, slowing economic growth, currency devaluation and tightened restrictions on capital outflows. On Friday, China’s benchmark stock index fell by 5.5%, its biggest daily slide since August, as Beijing authorities stepped up a crackdown on the


Coalition blows gasket over diesel rebate

From the AFR: Sources have told The Australian Financial Review that Agriculture Minister Barnaby Joyce and former industry minister Ian Macfarlane are among those exercised over a communique Australia is being pressured by New Zealand and others to sign on the sidelines at Paris. The Coalition MPs are arguing it would pose a risk to the multi-billion dollar rebate


Business Indicators GDP positive

From Westpac: The Business Indicators survey provides an estimate of business inventories and a partial update on incomes. The survey was more positive than we anticipated, particularly around incomes. Inventory levels were little changed in the quarter, +0.1%,  vs Westpac f/c -0.5%. This broadly flat result was despite a decline in imports, which pointed to the


Mining exploration rose, petroleum fell in Q3

By Leith van Onselen The Australian Bureau of Statistics (ABS) today released its Mineral & Petroleum Exploration data for the September quarter, which revealed a rebound in mineral exploration expenditure but an ongoing slump in petroleum exploration expenditure. Nationally, expenditure on minerals exploration rose by a seasonally-adjusted $38 million (11.5%) over the September quarter, putting


Annual housing credit growth sets new record

By Leith van Onselen The Reserve Bank of Australia (RBA) has released its private sector credit aggregates data for the month of October: A chart showing the long-run breakdown in the components is provided below: Personal credit growth (-0.3% MoM; -0.1% QoQ; 0.0% YoY) is in the gutter, whereas business credit growth (1.0% MoM; 2.7%


Gotti: Samarco to bury BHP

From Gotti: The BHP accounts reveal that the BHP carrying value of its Samarco shares is about $US1bn. That asset will need to be written off. And in 2014-15, Samarco contributed $US371m to BHP’s operating profit, compared to $607m the year before. This was a very profitable mine. …According to the BHP accounts, Samarco’s total


Domainfax goes all-in on fattened McGrath turkey

From Domainfax: On Tuesday December 7, after an oversubscribed $65 million IPO, McGrath will list. …The business trajectory attracted the investors. Mr McGrath, using the graph that shows how the business had grown regardless of the market, convinced them to look past the peak of the Sydney boom. …Privately, Mr McGrath has looked hard at Realogy, the $US6


COP21 comes, ready or not

The Paris Climate Change Conference, COP21, is underway. Martin Wolf has a nice backgrounder: Couldn’t have out that better myself. Meanwhile, Dumb and Dumber are thrashing it out at home, from The Australian: Malcolm Turnbull will hold open the prospect of increasing Aus­tralia’s carbon target as he joins other world leaders at today’s clim­ate change


Deloitte: $38 billion new Budget black hole

From Deloitte: Let’s cut to the chase.  You are about to read another very familiar story – one in which the Budget disappoints versus the latest official forecasts.  Budget deficits in the four years to 2018-19 look set to be $38 billion larger than expected. By far the bulk of that – 90% of it


Victorian Budget rides the housing bubble

By Leith van Onselen The Victorian Government on Friday released its 2015-16 budget update, which projected a $500 million upgrade in the Budget surplus on the back of strong stamp duty and land tax receipts, courtesy of the Melbourne housing bubble. The May Budget originally forecast a Budget surplus of $1.2 billion for 2015-16, however


Sydney auction clearances continue crashing

Core Logic-RP Data released its auction market report yesterday, which posted a slight fall in the preliminary national clearance rate driven by the ongoing slump in Sydney. The preliminary national auction clearance rate was 60.1%, down slightly from the 60.8% preliminary rate recorded last weekend, according to Core Logic-RP Data: Sydney’s preliminary clearance rate fell


Commercial property bubble meets a pin

Michael Pascoe had an excellent article on the weekend: Lang Walker knows a bit about property development and investment – he’s been doing it for the better part of 40 years and became a billionaire twice over in the process…If one thing has distinguished Walker, it’s been his ability to sell out at the right