Market Statistics

Market Data Dashboard - week ending 3 September 2010

Strong Australian GDP data coupled with strong US and Chinese economic data saw bonds sell off and stocks trade higher. The RBA meets this week with no change expected.

Economic data
In Australia, company profits (2Q) rose 18.9%, to be 27.5% higher over the past year. The current account deficit (2Q) was $A5.6 billion (1.9% of GDP). Retail sales (Jul) rose 0.7%. Dwelling approvals (Jul) rose 2.3%. RBA credit growth (Jul) rose by 0.1%, up 2.8% over the year. Real GDP growth (2Q) was 1.2%, which saw annual growth pick up to 3.3% year-on-year. The trade surplus (Jul) narrowed to $1.9 billion. US data showed some improvement. Consumer spending (Jul) rose by 0.4%. Personal income (Jul) rose by 0.2% and personal spending grew by 0.4%. The core PCE deflator (Jul) rose 0.1%, up 1.4% over the year. Consumer confidence (Aug) rose from 51.0 to 53.5. The Chicago PMI (Aug) eased from 62.3 to 56.7. The ISM manufacturing index (Aug) increased to 56.3 from 55.5 in July. Non-farm payrolls (Aug) fell 54,000 leaving the unemployment rate at 9.6%.

Economic data

In Australia, company profits (2Q) rose 18.9%, to be 27.5% higher over the past year. The current account deficit (2Q) was $A5.6 billion (1.9% of GDP). Retail sales (Jul) rose 0.7%. Dwelling approvals (Jul) rose 2.3%. RBA credit growth (Jul) rose by 0.1%, up 2.8% over the year. Real GDP growth (2Q) was 1.2%, which saw annual growth pick up to 3.3% year-on-year. The trade surplus (Jul) narrowed to $1.9 billion.

US data showed some improvement. Consumer spending (Jul) rose by 0.4%. Personal income (Jul) rose by 0.2% and personal spending grew by 0.4%. The core PCE deflator (Jul) rose 0.1%, up 1.4% over the year. Consumer confidence (Aug) rose from 51.0 to 53.5. The Chicago PMI (Aug) eased from 62.3 to 56.7. The ISM manufacturing index (Aug) increased to 56.3 from 55.5 in July. Non-farm payrolls (Aug) fell 54,000 leaving the unemployment rate at 9.6%.

Rates
Australian bond yields increased over the week. The Australian market continues to be led by offshore moves. Front end yields increased the most as investors scaled back rate cuts that had been priced into the market. Australian two-year yields rose 0.05% to 4.37% while 10-year yields increased 0.03% to 4.84%. US treasuries were mixed. The market is extremely volatile at the moment, with volatility led by the long-end. The FOMC minutes showed a somewhat less unified Committee which was not prepared to advance the Fed toward a second round of QE beyond maintaining the size of the Fed's current security holdings. Fears of a double-dip recession eased in response to positive economic data. Two-year US treasuries fell 0.04% to close at 0.51% while 10-year yields increased 0.05% to close at 2.70%.

Rates

Australian bond yields increased over the week. The Australian market continues to be led by offshore moves. Front end yields increased the most as investors scaled back rate cuts that had been priced into the market.

Australian two-year yields rose 0.05% to 4.37% while 10-year yields increased 0.03% to 4.84%.

US treasuries were mixed. The market is extremely volatile at the moment, with volatility led by the long-end. The FOMC minutes showed a somewhat less unified Committee which was not prepared to advance the Fed toward a second round of QE beyond maintaining the size of the Fed's current security holdings. Fears of a double-dip recession eased in response to positive economic data. Two-year US treasuries fell 0.04% to close at 0.51% while 10-year yields increased 0.05% to close at 2.70%.

Credit
Better economic data and strong equity markets helped credit spreads to narrow. The indices outperformed the cash market as sentiment improved. The SEC decided not to pursue a fraud case against Moody's over its ratings of CDOs in 2007. The Aussie iTraxx narrowed 6 bps to 122, down from the week’s peak of 132 bps. Offshore indices outperformed the domestic market.

Other Markets
Crude oil fell 0.8% to US$74.62 per barrel while gold finished 1.2% higher at US$1,253. The CRB commodity price index rose 0.8% to close at 459. The AUD/USD rose to its highest level in four weeks closing 2.4% higher at USD 0.910 cents. The EUR/USD rallied 1.0% to $1.284 while the GBP/USD underperformed closing 0.8% lower at 1.540. Equity markets surged higher supported by US and Chinese economic data and investor optimism that the US economy would not fall back into recession. The S&P 500 increased 3.7% to close at 1,105. The FTSE jumped 4.4% to finish at 5,428 while the ASX200 closed 3.9% higher at 4,541.

Other Markets

Crude oil fell 0.8% to US$74.62 per barrel while gold finished 1.2% higher at US$1,253. The CRB commodity price index rose 0.8% to close at 459.

The AUD/USD rose to its highest level in four weeks closing 2.4% higher at USD 0.910 cents. The EUR/USD rallied 1.0% to $1.284 while the GBP/USD underperformed closing 0.8% lower at 1.540.

Equity markets surged higher supported by US and Chinese economic data and investor optimism that the US economy would not fall back into recession. The S&P 500 increased 3.7% to close at 1,105. The FTSE jumped 4.4% to finish at 5,428 while the ASX200 closed 3.9% higher at 4,541.

The week ahead
In Australia, the RBA announces the cash rate target on Tuesday (no change expected). On Thursday we get August employment data (market expects +25,000). In the US, the calendar is very light with the Fed’s Beige Book released on Thursday along with consumer credit, the trade balance and initial jobless claims.

The week ahead

In Australia, the RBA announces the cash rate target on Tuesday (no change expected). On Thursday we get August employment data (market expects +25,000).

In the US, the calendar is very light with the Fed’s Beige Book released on Thursday along with consumer credit, the trade balance and initial jobless claims.