More action out of the RBA this month to support the economy At its September board meeting, the RBA left interest rates on hold, which was no big surprise. The surprise was in the RBA’s announcement of an extension and increase of the cheap funding it provides to the banks. You might recall back in March, the RBA announced a term funding facility, under which it would provide cheap loans to the banks, locked …
Market Update 04 September 2020 Investment markets and key developments over the past week US shares hit another record high mid-week only to be reversed by the end of the week because of a big fall in tech shares, which have been driving the rebound in US equities since the March lows. The US S&P is down by 1.5% over the week, with the tech sector (which has the biggest weight in the index) down …
Market outlook Q&A – disconnect to real economy, growth v value, vaccines, property, gold, inflation and other issues Key points Share markets often lead economic recoveries. Share markets are likely to see a rotation in favour of cyclical stocks relative to growth stocks and this would favour non-US and Australian shares over US shares. Markets have only partially priced in a vaccine. More downside is likely in the $US and this could see the $A …
Market Update 28 August 2020 Investment markets and key developments over the past week Global share markets rose over the past week helped by continuing signs of economic recovery, positive coronavirus vaccine and treatment news and anticipation of the Fed’s shift to inflation average targeting. Australian shares fell slightly though over the past week reflecting poor earnings results with weakness in utilities, energy, health, telco and material shares. Bond yields rose helped by the Fed’s more …
ECONOMICS & MARKETS AUG 20 – Shane Oliver’s update on the current state of global share markets Please join Shane Oliver, Head of Investment Strategy and Chief Economist, for an update on the current state of global share markets. By Dr Shane Oliver Head of Investment Strategy and Economics and Chief Economist, AMP CapitalSydney, Australia Important information While every care has been taken in the preparation of this video, AMP Capital Investors Limited (ABN 59 001 …
Econosights: The outlook for consumers Key points Despite the fall in Australian employment since March, total household incomes have risen from government payments and other measures including the mortgage deferral scheme and early access to superannuation. Consumer savings will lift in the short-term from the temporary boost to income and lower consumer spending. Higher household savings will help to smooth consumption over the next year as household income growth remains low into 2021 as the …
Seven reasons why the trend in shares will likely remain up, albeit with bumps along the way Key points Shares have had a strong run up from their March lows with US shares now at a record high. While shares are vulnerable through the seasonally weak months ahead in the run up to the US election, the positives – including good progress in developing vaccines, the downtrend in the US dollar, signs of …
Market Update 21 August 2020 Investment markets and key developments over the past week Share markets were mixed over the last week. US shares rose slightly but have been constrained around their February record high and Chinese shares rose but Eurozone and Japanese shares fell after strong gains in the previous week. Australian shares were little changed reflecting the mixed global lead along with bad but no worse than expected overall earnings results. Very strong …
The twilight zone: Australian house prices falling but worse to come Average property prices across Australia’s capital cities fell for the third month in a row in July. The monthly fall, of 0.8%, means capital city prices have fallen 2% on average since their peak in April 20201. AMP Capital chief economist and head of investment strategy Dr Shane Oliver says average property prices rose by 10.3% between June 2019 and April 2020, but …
Market Update 14 August 2020 Investment markets and key developments over the past week Major global share markets, with the exception of Chinese shares, rose over the last week as US new coronavirus cases trended down and on optimism regarding a vaccine and the economic outlook, with the US share market briefly surpassing its February closing high. The positive global lead along with a fall in new Victorian cases saw Australian shares rise to the …
