Australian CAPEX drops 1.2%, falling short of expectations: Midday roundup

The Australian Bureau of Statistics announced this morning Australia’s new private capital expenditure fell 1.2% in real terms to $40.988 billion, seasonally adjusted, in the December quarter.

The fall defies market expectations, with the median analyst prediction being a rise of 1.1%.

The release of the data caused a fluctuation of the Australian dollar. Immediately following the CAPEX report, the dollar fell to US101.097 cents, but quickly rose again minutes later to US102.51 cents.

All Homes provides ACCC with court enforceable undertaking

Real estate company All Homes is in trouble with the Australian Competition and Consumer Commission having sent an email to 1,000 other real estate agencies about its commitment to restore agency fees.

The email said it would include a notice to sellers on the All Homes’ property listing website saying sellers could expect to pay between 2-3% of the sale price of a property for the services of an experienced salesperson employed by a full service real estate agency.

ACCC acting chair Delia Rickard said in a statement the email could lead to fixed minimum pricing and increased costs for property sellers.

“The ACCC was concerned that such conduct could lead real estate agents to reach an understanding on a minimum price for real estate services in relation to property sales. This may lead to increases in prices for consumers or a decrease in price competition between those agents,” Rickard says.

All Homes acknowledged the email induced a risk of breaching certain sections of the Competition and Consumer Act.

Australian shares on the rise

Australian shares have made a strong recovery since this time last week, with shares jumping almost 1% on open after a strong showing on Wall Street overnight.

At midday the S&P/ASX200 benchmark was at 5075.1, up 39.1 points.

The Dow Jones Industrial Average closed at 14075.37, up 175.24 points or 1.26%.

 

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