News

Commodities rallied around 20% as China’s stimulatory policies finally kicked in. Economic activity in China is finally showing signs that interest rate and Reserve Rate cuts are working. Large increases in credit and social financing has seen some property market recovery. Infrastructure projects are coming online, and steel producers have fired up furnaces and started production. Iron ore finished 23% stronger on increased demand, but also speculative trading by retail investors.

Forget the Budget and looming federal election, Australia’s biggest news was the Senate’s unequivocal support for Innovation. It was an impressive day in politics with all sides (in both Lower and Upper Houses) supporting and passing a Bill which creates generous tax incentives for innovation investment.

Oil is back in the headlines with the breakdown of discussions in Doha over the weekend. Iran didn’t even want to come to the table, and the remaining 20 largest producers couldn’t come to an agreement. This has left the oil price at the mercy of excess supply.

In January, Kuroda’s Bank of Japan (BOJ) joined the NIRP (Negative Interest Rate Policy) club. It was not well flagged, which suggested it was possibly a last ditch attempt to help stimulate the ailing economy.