Market Update 28 May Investment markets and key developments over the past week Global share markets rebounded over the last week as inflation fears faded a bit and economic data indicated that the recovery continues. The positive global lead saw the Australian share market shake off worries about the dip in the iron ore price and the latest Victorian snap lockdown and rise to a new record, led by very strong gains in telcos, IT, …
Inflation Q&A – should we be worried about higher inflation? Key points Inflation will likely rise further in the months ahead due to base effects, bottlenecks & reopening but it’s likely to fall back again from later this year as these drivers fade. Shares face short-term correction risks but as inflation settles the broad trend is likely to remain up. Viewed in a very long-term context, we are likely now going through the bottoming of …
Market Update 21 May Investment markets and key developments over the past week Share markets had a bit of a rough ride with inflation fears continuing to impact and this left them mixed for the week with US and Eurozone shares down but Japanese and Chinese shares up. Australian shares were hit hard earlier in the week by inflation fears and concerns about China diversifying its iron ore supply away from Australia (which is …
Market Update 14 May Source: Bloomberg, FXStreet, AMP Capital Investment markets and key developments over the past week Share markets fell over the past week as US inflation data for April came in far stronger than expected raising fears of an earlier Fed tightening, before a rebound later in the week – partly helped by softer US retail sales which took some pressure off bond yields – pared losses. So, despite the sharp fall earlier in …
The 2021-22 Australian Budget – spending the growth windfall to further grow the economy towards full employment Key points The Government now expects the Federal budget deficit to peak at $161bn this financial year (down from $214bn in October’s Budget) and fall to $107bn in 2021-22. The windfall to the budget from stronger growth is being spent on extra stimulus. Return to budget surplus looks more than a decade away. Key measures include more spending …
Market Update 07 May Investment markets and key developments over the past week Share markets mostly rose over the last week helped by good earnings and dovish central banks. US, European and Japanese shares rose but Chinese shares fell. Helped by the positive global lead and a dovish RBA the Australian share market also rose making a new recovery high with very strong gains in materials, energy and financial stocks. While the ASX200 has …
Market Update 30 April Investment markets and key developments over the past week Share markets were mixed over the last week with US shares rising to new record highs helped by good economic data, strong earnings and more stimulus and Chinese shares rising but European and Japanese shares fell. Australian shares also fell back slightly as the local market continues to work off technically overbought conditions after its early April surge. Weakness in retailers, …
Market Update 23 April 2021 Investment markets and key developments over the past week Share markets generally fell over the last week with first worries about the resurgence in global coronavirus cases and then reports that President Biden will propose a doubling in capital gains tax for high income earners weighing on markets. Although Chinese shares managed to rise from a double bottom after sharp falls since February, US, European and Japanese shares fell. Despite the …
Three reasons why the long-term bull market in Australian house prices may be getting close to the end Key points Australian home prices are currently in a cyclical upswing which likely has further to go into 2022. However, the longer-term bull market, that has seen above trend growth in property prices since the mid-1990s, may be close to an end as the long-term decline in interest rates bottoms out, property undersupply swings towards oversupply & …
Australian house prices on the upswing again – seven things to bear in mind about the Australian property market Key points Expect average Australian home prices to rise 5-10% this year and next as ultra-low interest rates and economic recovery feed through. However, the outlook is divergent – with houses expected to outperform units and smaller cities and regional property expected to play catch up. The drivers of the long-term property bull market …
