Kieran Salsone

St George Economics economy and finance update

Share Markets:

The overnight session saw only thin trade with US markets closed for the Presidents Day public holiday.

The German Dax rose 0.5% after the Bundesbank said that it expected economic growth to pick up during 2013.

The FTSE100 was down 0.2%. Italy holds its general elections next week.


With the US markets closed, bond markets were little changed. German long bonds yield 1.63% while those in the US sit at 2.00%.

Ten year Australian government bond currently yield 3.56% having traded below 3.00% in October.

Foreign Exchange: 

The AUD edged higher at the start of the overnight session but faded later.

It opens today marginally lower than it did yesterday. The yen and the euro were little changed against the USD and the AUD although the euro saw some volatility.


Gold was virtually unchanged while copper and oil were down in thin trade. Oil is down for a second successive day with minimal news on global economic growth.


New motor vehicle sales fell 2.4% in January, after rising by an upwardly revised 2.7% in December (previously reported as a 2.2% increase).

Despite the decline, it was the strongest January on record. For the year to January, car sales rose 10.8%, down from growth of 17.9% in the year to December.


The euro's exchange rate should not be dramatised with needless talk of currency wars, European Central Bank policymaker Ewald Nowotny said on Monday, noting the currency was moving within standard ranges.

Quantitative easing in major economies has been creating concern regarding its impact on currencies and future inflation.

The euro hit a 15-month high against the dollar earlier this month, complicating the ECB's policy making tasks by weighing on growth and feeding expectations that it may have to take fresh policy action.

Spain's Treasury said on Monday it planned to issue between 6 billion and 8 billion euros ($10.7 billion) in debt this week. In recent months Spain has been successful in raising its required funds in the market.

United States:

Markets in the US were closed for the Presidents Day public holiday.

Please read the disclaimer below (to enlarge, press ctrl-+ on modern browsers)

The information contained in this report (the Information) is provided for, and is only to be used by, persons in Australia. The information may not comply with the laws of another jurisdiction. The Information is general in nature and does not take into account the particular investment objectives or financial situation of any potential reader. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and is not an invitation to take up securities or other financial products or services. No decision should be made on the basis of the Information without first seeking expert financial advice. For persons with whom St.George has a contract to supply Information, the supply of the Information is made under that contract and St.George's agreed terms of supply apply. St.George does not represent or guarantee that the Information is accurate or free from errors or omissions and St.George disclaims any duty of care in relation to the Information and liability for any reliance on investment decisions made using the Information. The Information is subject to change. Terms, conditions and any fees apply to St. George products and details are available. St.George or its officers, agents or employees (including persons involved in preparation of the Information) may have financial interests in the markets discussed in the Information. St.George owns copyright in the Information unless otherwise indicated. The Information should not be reproduced, distributed, linked or transmitted without the written consent of St.George.

Queen's sorrow as PM sums up sadness

Premium Content Queen's sorrow as PM sums up sadness

Scott Morrison speaks to the Queen on Prince Philip's passing

Blue-eyed surfer becomes dad-of-50 in sperm bank glitch

Premium Content Blue-eyed surfer becomes dad-of-50 in sperm bank glitch

There are now fears he could have fathered dozens more

Millions invested in drought-research hubs to grow farm jobs

Premium Content Millions invested in drought-research hubs to grow farm jobs

Millions of dollars are being invested in a drought research hub at the University...