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Australia September Retail Sales Beat Expectations

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Australia retail sales
  • Australia September Retail Sales Beat Expectations

Australian retail sales rose by 0.6 percent in September from August 0.5 percent, the Australian Bureau of Statistics said Friday.

That was higher than the 0.4 percent rise expected by economists.

Sales for the third quarter fell 0.1%, the ABS said.

The ABS revised August retail sales growth higher to 0.5 percent from 0.4 percent previously reported.

The ABS said that sales rose in household goods (2.3%), cafes, restaurants and takeaway food services (1.0%), food (0.2%) and department stores (0.5%), offsetting declines in clothing, footwear and personal accessories (-0.6%) and other retailing (-0.1%).

There was also pleasing news on the performance of sales across the country with every state and territory registering an increase on the levels seen in August.

Sales rose in New South Wales (0.8%), Victoria (0.6%), Queensland (0.5%), Western Australia (0.5%), South Australia (0.3%), the Northern Territory (1.2%), Tasmania (0.4%) and the Australian Capital Territory (0.3%), said the ABS.

But it wasn’t all good news.

Alongside the monthly report, the ABS also released quarterly sales volumes — something that feeds directly into household consumption in Australia’s Q3 GDP — and, as opposed to the monthly report, it was big disappointment.

Volumes fell by 0.1 percent to $73.88 billion for the quarter, well short of forecasts for an increase of 0.4 percent. It was the first quarter since Q2 2014 that sales volumes — adjusted for price movements — declined.

Given nominal sales increased as volumes fell, it indicates that prices rose over the quarter, as seen in Australia’s Q3 CPI report released in late October.

The ABS said that the main contributors to the fall were in food and department stores sales which slide by 0.7 percent and 1.1 percent respectively.

The increase in the June quarter, originally reported as a gain of 0.4 percent, was also revised down to 0.3 percent.

Retail sales account for around 30 percent of total household consumption, the single-largest component within Australian GDP.

Not good sign for September quarter GDP report, at least on early indications.

Despite the miss on the quarterly sales volumes, the market reaction, so far at least, has been muted.

The Australian dollar is trading at .7682, flat for the session, having attempted to bust through the .7700 in the immediate aftermath of the report.

This reaction may also have been caused by the release of the RBA’s quarterly statement on monetary policy which arrived at the same time as the retail sales report.

The ASX 200 is down 0.7 percent, maintaining the losses seen earlier in the session.

Australian 3 and 10-year bond are trading softer, down 4 and 3.5 points ticks respectively.

February 2017 cash rate futures put the odds of a 25 basis point rate cut from the RBA at 27 percent, unchanged for the session.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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