X

Select the account you'd like to open

News

ASX lower, retail sales jump

shopping trolley in a grocery store

The S&P/ASX 200 closed lower on Tuesday, dropping 57.00 points or 0.77% to 7,390.10.

In the US on Wednesday, inflation data is scheduled for release. US inflation is the highest in almost four decades, hitting 6.8% in the most recent data released in December 2021. Economists have attributed the rise in consumer prices over the past year to several factors, including supply chain breakdowns, labour shortages and a sudden burst of spending after widespread lockdowns during the Covid-19 pandemic.

The worry going forward is Australia gets sucked into the global inflation.

Australian retail sales received a sustained boost as consumers emerged from lockdowns. There was another big jump in November which exceeded economists’ estimates. November retail sales rose by a seasonally adjusted 7.3% to $33.41bn according to the Australian Bureau of Statistics. That followed a 4.9% increase in October. The November jump was more than twice Bloomberg’s consensus estimate of 3.6%.

Household spending is expected to grow at a more modest pace in 2022 as Australian lives return to normal after two years of Covid-19 related disruptions. Fitch Ratings estimates real household spending will grow 3.5% this year to $939.7bn as an easing of further restrictions supports a return to more regular consumer behaviour. That’s down from 5% growth estimated for 2021.

AUD/USD US71.85c

Bitcoin $US42,150

Gold $US1806.46 an ounce

Brent crude oil $US81.44 a barrel

WTI crude oil $US78.93 a barrel


Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.

Sign up for market update emails