Reserve Bank governor Michele Bullock yesterday told a Senate estimates committee that the recent slowing in the housing market is an early sign that higher interest rates are starting to cool the economy.

Bullock said the economy was still expected to grow – something some market economists have questioned given Wednesday’s weak GDP figures – although she conceded it would be moderate growth.

If the Middle East war pushes oil prices higher, growth could be lower, although the Governor called out strong business investment in data centres and renewable projects as sources of expansion.

Bullock said government spending in the federal budget was in line with expectations, and she avoid questions on whether she thought the budget was inflationary.

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Greed-o-meter

Chinese electric vehicle maker BYD had the second-highest number of new car sales in Australia last month - up 155pc compared to May 2025. Overall, electrified vehicles (including hybrids and full EVs) made up 46pc of new sales across the country in May.

Source: Federal Chamber of Automotive Industries

Fear & Greed Q+A today

Australians increasingly want ethical investing, but according to a new report from Mindful Money, many still have little visibility over where their superannuation is actually invested. Increasingly, it is younger generations pushing for change:

 

"Many Australians are very loyal to their super funds and they’re reluctant to change, for lots of good reasons. Some will though — some will use our website and look around and find a fund where there’s better alignment with their values.

 

But one thing people can do, even if they want to stay with their fund, is actually go back to the fund manager and say: ‘Gee guys, I’m worried about some of the investments that you’re making. They don’t accord with my values and I’d like you to consider getting out of those companies.’

 

And it’s surprising — these super funds don’t actually get a ton of mail or email. So people doing that can really make a difference.

 

I think over the generational change, you’re going to find a lot of young people saying: sustainability matters, climate change matters, ethical issues matter — and therefore I want to align my investments with who I am as a person."

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News in brief

The S&P/ASX200 tumbled 1.1 per cent to 8686 points yesterday, with BHP, Rio Tinto and Fortescue Metals finishing more than three per cent lower. It came after figures show that iron ore shipments from Guinea’s massive Simandou mine soared. Iron ore from Guinea is a direct threat to exports from the Pilbara.

The federal government’s budget bill to increase capital gains tax and end negative gearing for existing homes, in return for a small amount of income tax relief, has passed the House of Representatives.

Treasury Wine Estates has unveiled a major overhaul, narrowing its focus to just ten key brands, investing in lighter styles and zero and low-alcohol wines, and reviewing its struggling business in the United States.

Foreign Minister Penny Wong has joined the growing chorus of criticism of the Trump Administration’s proposed 12.5 per cent tariff on Australia. She said there was no basis for the imposts.

The greatest shooter in NBA history, Steph Curry, recently parted ways with Under Armour, and has announced a 10-year brand partnership deal with Li-Ning, a China-based sportswear company, to produce basketball gear, athleisure, and a full golf line.

Fear-o-meter

Cotality on final clearance rates for the housing market:

There were 2,659 auctions held across the combined capital cities [last week], up 14.2 per cent from the previous week. This was the highest weekly auction volume across the combined capitals since the March 2026.

The weighted average final clearance rate fell to 49.0 per cent, down 2.2 percentage points from the previous week and its lowest level since May 2020.

Compared with the same week last year, the weighted average clearance rate was 17.2 percentage points lower (49.0 per cent vs 66.2 per cent), even as auction volumes were only slightly lower than in 2025. This points to weaker buyer demand rather than reduced seller activity this season.

Melbourne’s clearance rate eased to 51.9 per cent from 53.3 per cent, the city's lowest weekly clearance rate since April 2023. Sydney clearance rate eased to 46.5 per cent from 49.3 per cent.

Across the smaller capitals, Adelaide has a clearance rate of 59.5 per cent, Brisbane had a clearance rate of 39.9 per cent, its lowest weekly clearance rate since December 2022 and Canberra had a clearance rate of 38.7 per cent.

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