What the Coalition’s election victory means for Australia’s economy

What the Coalition’s election victory means for Australia’s economy With the Coalition returning to government following Saturday’s Federal election, it’s likely to be business as usual for the Australian economy. AMP Capital Senior Economist Diana Mousina says the Coalition’s focus in the near term will remain on providing tax relief to low-and-middle-income households, which was the focus of this year’s Federal budget. This tax relief represents about 0.5 per cent of gross domestic product (GDP). …

Weekly Market Update 17 May 2019

Weekly Market Update 17 May 2019 Investment markets and key developments over the past week Share markets fell earlier in the past week as the trade war continued to escalate, before rebounding helped by better economic and earnings news and hopes of a trade deal. This left share markets mixed with US and Chinese shares down slightly, but Eurozone, Japanese and Australian shares up. Australian shares saw strong gains in resources stocks helped by rising iron …

Should investors be worried about the election outcome?

Should investors be worried about the election outcome? We’re in the midst of the 2019 Federal election campaign, and some investors may be worried about the impact of the outcome on investment markets. There is definitely a clearer difference between the major parties this time, which is creating more uncertainty than in previous campaigns. But those differences aren’t as extreme in many other countries around the world. While the election result may trigger some short-term …

The trade war is back – what went wrong, what it means for share markets and Australia

The trade war is back – what went wrong, what it means for share markets and Australia   Key points   Consumer expectations of instant gratification are driving down delivery times   Labour shortages and traffic congestion highlight the criticality of well-located logistics facilities The trade war between the US and China has returned after talks to resolve their trade differences broke down. Our base case remains that a deal will be reached to resolve …

Weekly Market Update 12 April 2019

Weekly Market Update 12 April 2019 Investment markets and key developments over the past week Global share markets fell slightly over the last week on global growth concerns and renewed US/Europe trade war fears. Australian shares rose though playing catch up to the previous weeks rally in global shares with energy, tech and real estate stocks being the main drivers. Bond yields were flat in the US but fell elsewhere. Oil and iron ore prices continued …

Weekly Market Update 05 April 2019

Weekly Market Update 05 April 2019 Investment markets and key developments over the past week Share markets pushed higher over the last week helped by more “green shoots” pointing to improving global growth this year, including Chinese business conditions PMIs & the US ISM index and a stabilisation in Eurozone composite PMIs, and more indications that the US and China are getting closer to a deal on trade (albeit with issues around enforcement and the …

Weekly Market Update 29 March 2019

Weekly Market Update 29 March 2019 Investment markets and key developments over the past week Share markets were mixed over the last week as global growth worries continue to impact. US and Eurozone shares rose a bit, but Japanese and Chinese shares fell in lagged response to the previous week’s falls in the US and Europe. Australian shares were little changed. Bond yields generally continued to drift lower, commodity prices were mixed with oil and copper …

Weekly Market Update 22 March 2019

Weekly Market Update 22 March 2019 Investment markets and key developments over the past week While Eurozone shares fell slightly, other major share markets rose over the last week helped by Fed dovishness. From their December low US shares are now up 21%, global shares are up 18% and Australian shares are up 14%. The underperformance of Australian shares in the rebound since December reflects the fact that they didn’t fall as much in last year’s …

Federal budget to deliver good news

Federal budget to deliver good news The Federal budget is creeping up on us even more quickly than usual this year. The Government has brought forward the budget to April 2 to make way for the Federal election, which will most likely be held in May. So it will be similar to what we saw in 2016 when the Government had a budget, then a short time later announced the Federal election. The outlook This …

Recession risks revealed

Recession risks revealed There’s been a lot of talk about a slowdown in Australia, including talk of a recession. That talk intensified this week after December quarter gross domestic product (GDP) figures showed growth remained very weak in the December quarter. The December quarter figures show GDP grew just 0.2 per cent and dragging annual growth in 2018 down to 2.3 per cent. Those numbers were below market expectations and below the Reserve Bank of …