Market Data Dashboard - week ending 11th May 2012
Bond yields fall despite strong labour market data as European political uncertainties grow and Chinese data disappoints. China announces a policy easing.
| Economic data |
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In Australia, the April labour market data surprised on the upside revealing an increase in employment of 15.5k and a fall in the unemployment rate to 4.9%. This came on top of better than anticipated March retail sales which were up 0.9% in the month or a real 1.8% for the quarter. March building approvals also surprised on the upside at 7.4%. April NAB business conditions fell to 0 from +4 in March while confidence was up marginally from +3 to +4. Chinese data disappointed. Both April exports and imports were weaker, the April CPI came in as expected at 3.4% while industrial production, retail sales and new Yuan loans all printed weaker. The weaker data prompted the Chinese authorities to ease the reserve ratio requirement. In the US, the small business and economic optimism surveys were slightly better than expected. The April core PPI fell 0.2% for a 12-month increase of 1.9%. |
| Rates |
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Australian two-year bond yields fell 0.17% to close at 2.69%, while 10-year yields fell 0.27% to 3.29% reflecting increased risk aversion in the wake of European political uncertainties. US two-year yields were unchanged on the week at 0.26% while 10-year treasuries declined 0.0% to finish at 1.84%. |
| Credit |
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The Australian iTraxx index widened 13 basis points to 173 basis points. |
| Other Markets |
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Crude oil fell 2.4% to US$96.10 per barrel while gold fell 3.8% to close at US$1,579 per ounce. The CRB commodity price index was unchanged at 489. The USD rose 1.3% against the EUR to 1.292 but was basically unchanged against the JPY at 79.9. The AUD fell 1.6% to USD1.002. US equity markets were weaker with the S&P 500 down 1.1% to 1,353. The ASX200 fell 2.5% to close at 4,285. |
| The week ahead |
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In Australia, the key focus of the week is the release of minutes of the RBA 1 May Board meeting. Other data on March home loans, April motor vehicle sales, May consumer confidence and inflation expectations and March quarter wage measures will also warrant some attention. China releases data on actual FDI, property prices and business sentiment. A big data calendar in the US with releases on CPI for April, April retail sales and industrial production, as well as key regional manufacturing surveys, housing data and leading indicators. |
