Are Australians ready to splash the cash? – Money Mate
Are Australians ready to splash the cash?
Australia’s GDP grew 3.3 per cent in the September quarter, finally ending the COVID-inflicted recession we really had to have.
But the Reserve Bank Governor Phillip Lowe warned the recovery will be “uneven and drawn out.”
With Christmas now just three Fridays away, retailers are hoping customers will spend, spend, spend, and push the economy’s growing momentum well into the New Year.
And with borders across the nation now open and a COVID vaccine in the works, there’s plenty of optimism that Australia will have a merry rather than miserly Christmas.
The week as a chart
ASX rides high despite China trade slaps
China’s trade spat with Australia dominated the headlines but triggered an investment rush, with Treasury Wines surging 3.65% despite a brutal new tariff on wine from the Middle Kingdom.The tariffs have split opinion over what’s next, with iron ore a big talking point.But the metal’s spot price hit record highs of $US136.29 per tonne after Brazilian producer Vale downgraded 2020 production.This pushed miners like Fortescue Metals, BHP and Rio Tinto up, pulling the ASX200 along for the ride.
Australia knocked off its gold mining perch
- Australia forecast to be producing 30% less gold by 2024 according to S&P.
- Lack of new greenfield sites to weigh on overall supply in the near term.
- Demand from global Central Banks expected to remain elevated over the medium term.
S&P Group’s market intelligence unit has forecast Australia will soon no longer be the world’s second largest producer of gold as older mines approach the end of their useful life while less mines come on stream to replace them.
The research comes at a time when central banks and investors are looking to bolster balance sheets with safe haven assets, with gold currently trading at $US1,939 per ounce according to the London Metals Exchange.
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