Gold soars as a flight to safety….
- Whilst the intensifying trade war between China and the US wreaked havoc on global share markets over the last couple of days, China’s appetite for Australia’s commodities has resulted in our monthly trade surplus smashing its previous record to hit $8.04 billion. This puts a current account surplus within reach for the first time since 1975.
- The RBA kept our interest rates on hold at 1% whilst lowering our growth forecast to 2.5% from 2.75%. Economists are still predicting another cut by Christmas.
- The Federal Reserve cut their rates by .25 percentage points last week below the .5 expected by most economists.
- The Aussies dollar hit it’s lowest point since the GFC at US$ 67.7 last Thursday only to rebound after our interest rates were kept on hold. It is now down further at US$ 69.9 as I type.
- After falling another 2.4% our All ORDS was down more than 6.2% from last Monday’s record highs. The S&P ASX-200 is trading up as I type at 6517.7.
- Diggers and Dealers were happy with a record gold price of $2,150/oz ($US 1,464.72) but noted that what was good for gold was not good for the world economy.
- Iron ore is down 5% as a result of the trade tensions.
- Good news for Perth’s commercial property with the CBD recording the highest six-monthly net absorption figure in the country according to the Australian Property Council. JLL is predicting a 40% increase in office rents over the next 7 years.
- In times of heightened uncertainty, it is imperative to work with an agent with proven experience and energy to burn. Call me for a plan to get you moving.
Authored by Jody Fewster
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