Trending Financial News 10 March 2020

Wall Street crashes in biggest one-day fall in history

The New York Stock Exchange crashed on Monday and trading was automatically halted for the first time since October 1997.

Share prices originally tumbled on opening on Monday morning after Saudi Arabia slashed oil prices $6 -$8 per barrel and boosted production. The Dow Jones has lost 19 per cent since mid-February, reported NPR.

Dow Jones Index Chart below from Google Finance:

The key market index, the Dow Jones Industrial Average lost more than 2,000 points as investors sold out over coronavirus fears. The Dow closed at 23,838 points, down from 25,865 on the previous market day close.

Keep up to date with the latest outlook for interest rates at InfoChoice.

Scott Morrison to hand out cash – in the national interest

Prime Scott Morrison has announced he is set to fast-track assistance to pensioners and small businesses as the government fights the coronavirus threat.

The Prime Minister is expected to change to the deeming rate to help pensioners hit by low interest rates on term deposits and deliver one-off stimulus payments to welfare recipients.

“This is one of those national interest moments,” said the prime minister.

“We confront today a new, complex, hydra-headed and rapidly-evolving challenge – the coronavirus, COVID-19.

“To stay ahead, we must work together and continue to take decisive and timely action.

Should I panic and stock up on toilet paper?


Some Aussies are being left with no toilet paper because panic buying has left supermarket shelves bare. Are the panic buyers being selfish or are they being smart?

Alfredo R. Paloyo, Senior Lecturer in Economics at the University of Wollongong explained in The Conversation that panic buying toilet paper is a similar phenomenon to a run on bank deposits. If everyone resists panic buying, then everyone will have enough toilet paper. But if panic buying starts, then consumers are best advised to get in quick and buy toilet paper themselves.

There are only three solutions to panic buying. Firstly the price of toilet paper could be allowed to rise until demand cools but this would lead to complaints about price gouging.

The government could buy toilet paper and create a government guarantee, similar to the deposit guarantee on deposits. This is unlikely.

Thirdly supermarkets can impose a limit on the amount of toilet paper people are allowed to buy.

Commonwealth Bank cuts savings rates, effective immediately

Commonwealth Bank have cut pensioner security savings rates to 0.01 effective immediately.

Commbank’s GoalSaver (Australia’s most popular savings account) now has a maximum bonus rate of 0.64% pa for balances >$50K.

Commonwealth Bank Pensioner Security account new rates from 9 March 2020:

Go direct to Commbank Pensioner Security Account rates information at InfoChoice.

Commonwealth Bank GoalSaver account new rates from 9 March 2020:

Go direct to Commbank GoalSaver Account rates information at InfoChoice.

Commonwealth Bank Youthsaver account new rates from 9 March 2020:

Go direct to Commonwealth Bank YouthSaver interest rates information at InfoChoice.

UBank cuts savings rates

Following the RBA rate change last week, UBank has announced rate cuts on USaver, USaver SMSF and USaver Reach savings accounts, effective Monday, 9 March. The maximum bonus rate on these accounts will be cut by 0.25 percentage points.

UBank is also cutting term deposit rates. UBank is cutting 0.15% pa from 6-month term deposits and 0.10% pa on other terms.

Go direct to UBank interest rates information at InfoChoice.

What is Klarna?

Klarna is a buy now pay later app (first developed in Sweden) and now very popular in Europe. Klarna is available in Australia, where it is a 50/50 joint venture with the Commonwealth Bank.

Klarna is competing against Afterpay, Zip, Openpay and Latitude Pay among others.

Read InfoChoice’s First Review of Klarna.

Which banks are cutting rates on home loans?

All four big banks have cut home loan interest rates since Tuesday. Other banks to announce rates cuts include:

CUA

Defence Bank

Geelong Bank

Greater Bank

Heritage Bank

HSBC

Hunter United

Illawarra Credit Union

Compare home loan rates from Australia’s banks, credit unions, non-bank lenders and neobanks at InfoChoice.

Keep up to date with the latest outlook on interest rates at InfoChoice.

3 bonus VFF points for every $1 spent

The Virgin Australia Velocity Flyer Visa credit card has a zero per cent balance transfer rate for 22 months, reverting to 20.99% pa.

This card offers a VFF points earn rate of 3 additional bonus Velocity Points per $1 spent on your everyday spend in the first 3 months, capped at 10,000 VFF Points per month.

Purchase interest rate is 20.74% pa with up to 55 days interest free.  Virgin Australia’s Velocity Flyer Visa rates and fees information at InfoChoice.

Go direct to Virgin Money credit card rates and fees information at InfoChoice.

Compare credit cards from Australia’s major banks, credit unions and other credit card issuers at InfoChoice.

How to check your home loan interest rate

Do you know your home loan interest rate, repayments and what fees (if any) you are being charged on your mortgage? Have you compared your rate with the lowest rates in the market?

Here are the big four mortgage rates and fees information at InfoChoice:

Commonwealth Bank home loan interest rates and fees information.

Westpac Bank home loan interest rates and fees information.

ANZ Bank home loan interest rates and fees information.

NAB home loan interest rates and fees information.

InfoChoice compares the big banks with more than 140 other financial institutions and 1800 home loans. Read more about how to find your home loan interest rate and fees information at InfoChoice.

Auction Results for 7 March 2020

Auction results continue to show capital city property markets are enjoying improving sales, higher prices and plenty of demand from buyers. Keep up to date with the latest property market news at InfoChoice.

Sydney Auction Results, Saturday 7 March 2020

There were 679 residential property auctions held in Sydney on Saturday 7 March 2020. 81 per cent produced a sale, up from 54% on the same weekend last year, for a median sale price of $1,238,000 in preliminary results reported by Domain.

Read more about the Sydney property market outlook in 2020 at InfoChoice.

Melbourne Auction Results, Saturday 7 March 2020

There were 347 residential property auctions held in Melbourne on Saturday 7 March 2020, the Labour Day long weekend.

69 per cent produced a sale, up from 49% on the same weekend last year, for a median sale price of $802,000 in preliminary results reported by Domain.

Read more about the Melbourne property market outlook in 2020 at InfoChoice.

Adelaide Auction Results, Saturday 7 March 2020

There were 44 residential property auctions held in Adelaide on Saturday 7 March 2020. 71 per cent produced a sale, up from 46% on the same weekend last year, for a median sale price of $585,000 in preliminary results reported by Domain.

Read more about the Adelaide property market outlook in 2020 at InfoChoice.

Brisbane Auction Results, Saturday 7 March 2020

There were 77 residential property auctions held in Brisbane on Saturday 7 March 2020. 58 per cent produced a sale, up from 43% on the same weekend last year, for a median sale price of $755,000 in preliminary results reported by Domain.

Read more about the Brisbane property market outlook in 2020 at InfoChoice.

Canberra Auction Results, Saturday 15 February 2020

There were 23 residential property auctions held in Canberra on Saturday 7 March 2020. 69 per cent produced a sale, up from 28% on the same weekend last year, in preliminary results reported by Domain. Read more about the Canberra Property market Outlook 2020 at InfoChoice.

Keep up to date with the latest property market outlook at InfoChoice.

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