Bi Monthly Market Update | Interest rates hit a historic low of 1%

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• Some positive signs in the US/China trade negotiations, with the ceasefire agreed at the G20 Summit in Japan.
• In an attempt to lower unemployment and lift wages and inflation, the RBA cut interest rates to 1% yesterday (the lowest level in history). The RBA Governor is calling on Federal and State Governments to do more with infrastructure spending.
• Tax cuts are closer after passing through the Lower House last night. The Senate is expected to get the job done but still needs the Lambie vote.
• Banks dropped as a result but with help from the miners the S&P ASX-200 closed at 6,653.2 yesterday and is now trading at 6,685.4 .
• Driven in the main by supply-side constraints Iron Ore prices are at a 5 year high of $US123.65 a tonne.
• After dropping as low as US 69.57c yesterday the Aussie dollar is now trading at US 69.96c.
• Lower interest rates are not great news for savers who will need to look to alternative asset classes of shares and property.
• Another positive for property markets is that the latest data on Sydney and Melbourne suggest prices are stabilising.
• Finance is still tight with the latest ABS housing finance figures for April 2019 showing the value of housing commitments 19% below what it was 12 months previously.
• As an experienced agent I know how to work with finance providers to ensure you get the finance you need. Call me for a plan to get you moving.