Economics

Late last week, conflicting price movements were observed in two key industrial metals, with China serving as the common link. Copper surged to multi-month highs while iron ore slumped sharply to below $US100 a tonne on Friday in Singapore.

A negative start for trading on the ASX today (Monday) after a small dip in the futures market on Friday, which came on top of a ‘red’ session earlier in the day and a downer on Wall Street.

In a move with global ramifications, the massive US home buying and selling industry has just experienced a seismic shift akin to the deregulatory explosions in financial markets of the 1980s and 1990s.

China's central bank, the People’s Bank of China, has opted to keep a key policy rate unchanged amidst a significant decline in property prices across the nation. This decision comes as the latest data reveals a sharp 1.4% drop in monthly house prices, marking the steepest decline seen in the past 13 months.

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Another slide in iron ore prices occurred on Thursday afternoon, and it wouldn’t be surprising to see the $US100-a-tonne level breached in the next couple of days.

Albemarle, the world's largest producer of lithium for electric vehicle batteries, has decided to join rival Pilbara Minerals and start auctioning its supplies of Australian-sourced spodumene, a key raw material for lithium metal.

On Thursday, our major iron ore miners faced increased pressure as global prices remained under duress. During daytime trading, iron ore experienced further decline this week, with China's economic outlook once again exerting influence as futures approached the critical $US100-a-tonne mark.

Despite still-high (though easing) inflation, high interest rates, high house prices, and weak consumer spending and confidence, the globe's corporations managed to rack up an all-time high in dividends in 2023.

Panasonic Energy (Panasonic) has converted a long-standing MOU into a contract for at least 10kt of high-performance synthetic graphite to be taken over 4 years (i.e. 2.5kt/year).

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US inflation unexpectedly rose to 3.2% last month, which will likely make the US Federal Reserve reluctant to change its approach to rate cuts this year.

Business conditions improved slightly in February, yet confidence dipped, according to the latest NAB survey on the Australian economy.

Recent data analysis from the Australian Securities and Investments Commission (ASIC) sheds light on significant short squeeze activity that unfolded on the ASX in late February. Hedge funds made substantial adjustments to their positions, leading to the covering of nearly $1 billion worth of shorted shares and reshuffling their bets towards prominent ASX-listed companies.

China's 18 top copper processors are convening tomorrow to address the burgeoning crisis in copper concentrate supplies, marking a pivotal moment for the world's largest copper processing industry. The sector, responsible for over half of global copper output in 2023, faces challenges sourcing materials amidst mining shortfalls and heightened competition from India.

Iron ore prices have taken a nosedive, plummeting nearly 5 per cent and inching towards the $US110 a tonne threshold, as China's demand disappoints, leaving the market grappling with hefty inventories.

In yet another display of stern resolve, the Chinese government is doubling down on its stance towards the beleaguered property sector, signaling a no-nonsense approach to tackling its woes head-on.

Japan's stock market sold off steeply on Monday as investors assessed better economic growth data and concluded that it could see the end of the current super easy monetary policy stance from the Bank of Japan at its two meetings next week.

China can attribute the better-than-forecast seasonal rise in consumer price inflation in February to the Lunar New Year break. However, the holiday break, known for significant spending on food and travel, had no impact on the almost endemic deflation in producer prices, which continued to decline for yet another month in February.

Despite gold hitting a series of record highs last week, the precious metal is doing it without the support of most investors, as the outflow of metal from metal-backed Exchange Trading Funds (ETFs) continued in February.

Well, I guess it pays to have a bit of perspective in markets at times when the momentum is all go, go, go and record-breaky. After what was a 'goldilocks' US jobs report for February — some good, some bad — US stocks retreated on Friday, closing out a volatile five sessions with the worst weekly loss since October.

Oil prices stalled last week, despite a weaker US dollar and lower bonds rates and lot’s of bullish chat about rising demand.

This week, the US Federal Reserve will closely scrutinize its inflation battle with the imminent release of the crucial Consumer Price Index on Tuesday and the Producer Price Index on Thursday.

Numerous financial commentators, both within and outside the markets, persist in warning about potential risks to Australia's banks from bad debts, particularly concerning home loans and commercial property.

In a dynamic week of financial maneuvering, Europe appears to be positioning itself for a mid-year rate cut, while across the Atlantic, all eyes are on the United States Federal Reserve and its evaluation of inflation data. Despite this anticipation, Chair Jay Powell has reiterated the Fed's cautious approach, emphasizing the need for more comprehensive inflation metrics before any significant monetary policy decisions are made.

It’s a poor state of affairs when a key market player in Australia – the ASX – cops a fine from the key market regulator – ASIC – for breaches of its own rules.

China's foreign trade saw a solid improvement in January and February with growth in exports and imports stronger than expected when compared to the same two months period of 2023.