Market & Economic update - February 2023
File: Economic & Market Update
Duration: 01:35
Date: February 02, 2023
00:01 Economic Review February 2023
00:05 China’s plans to kickstart its economy after the pandemic shutdown have been dominating the news this month and will have worldwide implications, not the least for Australia.
00:15 As our largest trading partner, an increase in demand is likely to bring improvements in our commodity prices, exports and share prices.
00:25 Australian shares were up nearly 8% in January while US stocks climbed by about 5%.
00:33 However, markets are nervously waiting for expected increases in interest rates by major central banks this month to help curb inflation.
00:47 Australia’s inflation rate jumped by 1.9% in the December quarter to 7.8% for the year.
00:55 It was the biggest increase since 1990 and more than twice the rate of wage growth, despite the Reserve Bank’s cash rate increases during 2022.
01:05 The Australian dollar closed slightly up in January at around US70c after achieving near eight-month highs during the month.
01:14 Consumer sentiment increased for the second consecutive month, rising by 5% to 84.3 in January.
01:22 Despite these increases, sentiment remains low, remaining in the bottom 10% of observations since the mid-1970’s.
This article is general information only and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you and read our Financial Services Guide before acting on it.
