Market Update 20 May 2022 | AMP Capital

Market Update 20 May 2022 Investment markets & key developments It was another volatile weak in share markets with worries that rate hikes, cost pressures and Chinese supply disruptions would hit profits after downgrades from some US retailers and tech stocks. This left US and Eurozone shares down, but Japanese, Chinese and Australian shares rose helped by monetary easing in China. In Australia gains in IT, utility and material shares more than offset falls in …

Econosights: The outlook for Australian wages | AMP Capital

Econosights: The outlook for Australian wages Key points Australian wages growth has been constrained because the supply of labour has increased since the beginning of the pandemic with the labour force participation rate now at a record high. High labour underutilisation over recent years has also kept a lid on wages growth. But, a tighter labour market, falling labour underutilisation, a higher inflation environment, a lift in the minimum wage and higher public sector wage …

Market Update 13 May 2022 | AMP Capital

Market Update 13 May 2022 Share markets fell again over the last week with ongoing worries about monetary tightening to combat high inflation driving a possible recession. The plunge in global shares also dragged down the Australian share market which saw sharp falls in IT, material, property and industrial shares with only health stocks rising for the week. Global bond yields pulled back from their highs, oil, metal and iron ore prices fell and the …

Investment markets and key developments over the past week | AMP Capital

Investment markets and key developments over the past week It was a turbulent week for markets after the US Federal Reserve raised interest rates by 0.5% at its May board meeting. This outcome was expected by the market and economists and the market actually rose from comments by Fed Chair Powell that 0.75% rate rises was “not something that the committee is actively considering” which alleviated fears of an extremely aggressive short-term rate hike profile …

The 2022 Australian Federal election and investors | AMP Capital

The 2022 Australian Federal election and investors Key points Australian election campaigns tend to result in a period of uncertainty which have seen weak gains on average for shares followed by a bounce once it’s out of the way. Labor is not offering a significantly different economic policy agenda than the Coalition. With the exception of climate policies, it’s hard to see a significant impact on investment markets from a change in government. A bigger …

Market Update 22 April 2022 | AMP Capital

Market Update 22 April 2022 Investment markets and key developments over the past week Share markets were mixed over the last week with solid gains initially, helped by strong US earnings results, but a resumption of interest rate concerns weighing later in the week. Eurozone shares rose, US shares were basically flat but with bond sensitive tech stocks weighing and Japanese and Chinese shares fell. Australian shares almost made it to a record high but got …

Australian housing slowdown Q&A – What impact will higher interest rates have? How far will prices fall? | AMP Capital

Australian housing slowdown Q&A – What impact will higher interest rates have? How far will prices fall? Key Points Australian home prices are likely to fall by 10% to 15% into 2024 primarily as a result of poor affordability and rising interest rates. The negative wealth effect from falling home prices should help limit how much the RBA raises rates. A change in Government is unlikely to significantly affect the outlook for home prices, but …

Market Update 8 April 2022 | AMP Capital

Market Update 8 April 2022 Investment markets and key developments over the past week Global share markets fell over the last week mainly on the back of hawkish central banks and ever rising bond yields. Australian shares also fell slightly with strength in utilities and energy stocks offset by weakness in retailers, IT and materials. Bond yields rose sharply, and oil, metal and iron ore prices fell. While the $A briefly made it above $US0.76 it …

Market Update 1 April 2022 | AMP Capital

Market Update 1 April 2022 Investment markets and key developments over the past week It was a mixed week for markets in terms of the economic data and news flow. US equities started the week strong, but are still down by 0.3% over the week (and ~6% below January highs), European shares had a good rebound up by 0.9% (but are still 11% below January levels), Japanese shares were 1.8% lower, Chinese shares continued to …

The 2022-23 Australian Budget – a “magic election pudding” of more spending and lower deficits | AMP Capital

The 2022-23 Australian Budget – a “magic election pudding” of more spending and lower deficits Key Points A budget windfall has allowed both more spending and lower budget deficits, with the 2022-23 budget deficit expected to be $80bn (down from $99bn in December). Key measures include “cost of living” payments, a temporary cut to fuel excise, more spending on infrastructure & defence & more help for home buyers. Relying mainly on nominal economic growth to …