ASX at the close

Chris Weston, Chief Market Strategist at IG Markets A new week and a new month and there will be many in the market happy to see the back of July, although developed market equities generally did well. The key thematic we have been detailing of late has been an increasing focus on the start of

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Few “silver linings” in youth employment recovery

By Leith van Onselen Dr Patrick Carvalho, a Research Fellow at the Centre for Independent Studies (CIS), has written an interesting article at Business Spectator on the nascent recovery in youth unemployment, which is showing green shoots: …underlying data shows youth unemployment has spiked not through outright lay-offs, but due to the positive activation of


REIWA shocked (SHOCKED!) by Perth price falls

By Leith van Onselen Back in June, Real Estate Institute of Western Australia (REIWA) chief, David Airey, made a goose of himself when he declared that Perth housing was set to boom, whilst heaping vitriol on us East Coasters predicting heavy falls as mining busts and the dwelling construction boom unwinds: “Given the sustained period of


Another Australian glut: Online news

We already have one thousand year gluts in our key commodities, commercial real estate and soon residential, and now we can add another sector to the abundance: online news. From the AFR: The Huffington Post is set to launch in Australia on August 19 led by former News Corp editor and journalist Tory Maguire as


Caixin China PMI deteriorates from Flash

I don’t usually bother posting on the final Caixin PMI number, only when it deviates materially from the Flash number, and it just did coming in at 47.8 in July versus a Flash reading of 48.2. July data signalled that the downturn in China’s manufacturing sector intensified at the start of the third quarter. Renewed falls in


RPData mortgage index falls sharply

From the RPData weekly property market update: CoreLogic RP Data systems monitor more than 100,000 mortgage activity events every month across our 4 main finance industry platforms. Monitoring the activity events across this platform provides a unique and timely lead indicator to housing finance commitments. The index shows an 81% correlation with the ABS housing


Manufacturing PMI firms

Fresh from the AIG: Activity across the manufacturing industry stabilised in July, after contracting in June. The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI® ) recovered by 6.2 points to 50.4 points, indicating conditions across the industry were broadly stable (readings above 50 points indicate expansion) (seasonally adjusted). The Australian PMI® typically


Abbott dons Rudd’s stimulus cloak

And so the cycle turns, from The Australian: The federal government will launch a political offensive to ­rebuild trust with voters and prove it is acting on major economic challenges, using three days of campaigning in South Australia this week to outline billions of dollars in support for local jobs…including support for local manufacturers and


Shadow RBA buries head deeper in sand

From the Shadow: A Greek debt default and exit from the Euro have been averted, while the rout of the Chinese stock market continues. There exist little new domestic data to guide the Reserve Bank this month. Official inflation equals 1.5%, well below the RBA’s target band. The CAMA RBA Shadow Board on balance prefers


Bronny falls on own chopper blades

From the AFR: Tony Abbott has secured Bronwyn Bishop’s resignation as Speaker but has defied public anger over her spendthrift ways by clearing her of any wrongdoing and blaming the parliamentary entitlements system. The Prime Minister accepted Mrs Bishop’s resignation and announced a “root and branch review” of entitlements in a decision he hoped would end three weeks of chaos


Joe Hockey lies again about negative gearing

By Leith van Onselen The negative gearing ‘whack-a-mole’ continues, with Treasurer Joe Hockey repeating the lie over the weekend that negative gearing is being used primarily by ordinary workers. From The Australian: In his strongest warning yet against changing the tax breaks, the Treasurer told The Weekend Australian there was “no merit” to amending the


Auction clearances slowly descend from orbit

Core Logic-RP Data released its auction market report yesterday, which revealed a small decline in the national auction clearance rate. The preliminary national clearance rate was 75.7%, down from the 77.7% rate recorded last weekend, according to Core Logic-RP Data: Sydney’s clearance rate fell by 3.9% to 78.8%, whereas Melbourne’s was 76.8%, up from the


Obama accelerates war on coal

From the FT: The Obama administration will on Monday unveil the most far-reaching action on climate change in US history by imposing stringent emissions cuts on the power sector, a move that faces ferocious opposition from political rivals and industry. …Overall, it will demand that the US power sector reduces carbon emissions by 32 per