Long-term global trends and implications for markets
Trends that influencing economic growth and investment markets
Category: E – Oliver’s Insights
Weekly Market Update with Shane Oliver
shares push higher; more signs of central banks slowing (excepting RBNZ); US recession risk; Covid in Aust & China; watch US payrolls & Aust CPI; Viva La Vida
Goods and services inflation – AMP
Will sticky services inflation follow the decline in goods inflation?
Oliver’s Insights – Seven things to keep in mind
Successful investing can be really hard in times like the present. Falls in share markets and other assets are stressful as no one likes to see their wealth decline and the natural inclination is to retreat to safety.
The RBA hikes rates by 0.25%. Here are five reasons why the RBA was right to slowdown and the top is near | AMP Capital
The RBA hikes rates by 0.25%. Here are five reasons why the RBA was right to slowdown and the top is near Key points The RBA sensibly dropped back to a 0.25% hike this month taking the cash rate to 2.6%. Its still signalling more hikes ahead though. Slowing the pace of rate hikes makes sense: the RBA needs to allow time to assess the impact of rate hikes so far given that they impact …
Shares sliding again – what’s driving it and is there any light at the end of the tunnel? | AMP Capital
Shares sliding again – what’s driving it and is there any light at the end of the tunnel? Key points Share markets remain under pressure from high inflation, rising rates & bond yields and the rising risk of recession and the threat that poses to company profits. With the rising risk of global recession, global and Australian shares are at high risk of further falls in the short term. However, it’s not all negative. Pipeline …
Market Update 23 September 2022 | AMP Capital
Market Update 23 September 2022 Investment markets & key developments Share markets fell sharply again over the last week in response to another round of hawkish rate hikes pushing up bond yields and adding to recession fears and with a threatened intensification of the war in Ukraine adding to worries. Reflecting the poor global lead Australian shares fell around another 2.7% with falls led by interest sensitive IT, property, utility and retail shares. Bond yields …
Econosights: Three reasons why Australia is more vulnerable to higher rates | AMP Capital
Econosights: Three reasons why Australia is more vulnerable to higher rates Key points Australian consumers are more vulnerable to interest rate rises compared to our global peers because of : 1) higher levels of household debt; 2) a higher share of variable rate mortgages and even those on fixed-loans only fix for a relatively short period of time; and 3) a large share of recently fixed mortgages are due to expire in the second half …
Econosights: Impacts from falling home prices – the wealth effect | AMP Capital
The impacts of interest rate hikes on conusmers are well known: higher interest means that mortgage debt servicing costs will go up which is negative for consumer spending. But, rate hikes are also bad news for home prices.. Econosights: Impacts from falling home prices – the wealth effect Key points Declining home prices will have a negative impact on household wealth as 65% of wealth is related to housing. Lower household wealth is negative for …