Weekly Market Update 24 August 2018 Investment markets and key developments over the past week The past week saw most global share markets rise as Turkey slipped out of the headlines, but Australian shares were hit by political uncertainty. Bond yields fell a bit in the US and Australia, were unchanged in Japan and were up a bit in Germany. Oil and metal prices rose but the iron ore price slipped. While the US dollar slipped …
Global trade wars could escalate AMP Capital Chief Economist Shane Oliver has warned that the global trade war could escalate, triggering further short-term investment volatility, but will ultimately be resolved through a negotiated settlement. Oliver says the trade war issue is going to be with us for some time to come. “There is a risk here,” he says. “There is continued talk of escalation and retaliation, more tariffs on China potentially, and talk of tariffs …
Weekly Market Update 29 June 2018 Investment markets and key developments over the past week The past week saw geopolitical concerns around trade, and particularly the US-China relationship, continue to dominate investment markets. This saw most share markets fall, with the Chinese share market falling particularly sharply, but the Australian share market held up pretty well with higher oil prices boosting energy stocks. Bond yields continued to fall on the back of safe haven demand, except …
Should the RBA raise rates to prepare households for higher global rates? Key Points The RBA should avoid calls to raise interest rates prematurely just to prepare households for higher global rates. Such a move would be Iike shooting yourself in the foot in order to practice going to the hospital.. Nor should the RBA mess with the inflation target that has served Australia well. We don’t see it doing either and continue to see …
Putting the global “debt bomb” in perspective – seven reasons to be alert but not alarmed Key Points Global debt levels have reached new records. Countries with very high gross debt to GDP include Japan, Belgium, Canada, Portugal and Greece. The main areas of rising debt since the Global Financial Crisis (GFC) have been public debt in developed countries (with more to come in the US) and private debt in emerging countries (and of course …
Weekly Market Update 15 June 2018 Investment markets and key developments over the past week The past week saw most share markets gain as strong US data more than offset worries about a more hawkish Fed and tariffs, the ECB remained dovish, Italian risks receded a bit and the US-North Korean summit was seen as successful. Chinese shares were not helped by soft economic data but gains in global shares generally and lower bond yields helped …
How global trends are creating infrastructure opportunities The rise of emerging Asian economies, climate change, technological disruption and the ageing demographic, are among trends creating massive opportunities for investors. Understanding these trends is key to getting involved. The Asian Century The middle class in China has expanded enormously in recent years. As much as 75 percent of China’s population is expected to be classified as middle class in 2022, up from just 4 percent in …
Econosights – Five Global Risks to Watch The global economic upswing is expected to remain in place for now which is good news for growth assets. But there are still plenty of downside risks to the growth outlook. We explore five key areas we are watching. Introduction We remain positive around the outlook for the global economy over the next year. But there are still numerous downside risks to growth that could cause issues for …
Tariffs, Trump, North Korea and other global political risks in the Year of the Dog Key points Geopolitical issues generate much interest as dinner party conversations but don’t necessarily have a significant impact on markets, apart from a bit of noise. But given a backlash against economic rationalist policies, the falling relative power of the US & the ability of social media to allow us to make our own reality, geopolitical risks are higher than they used to be. Key …
What the rise of the $A means for global investors The recent rise of the Australian dollar has been surprising but not confounding for experts who believe the its natural level is closer to US70 cents. Indeed, it’s the weakness of the US dollar that’s pushed the Australian dollar higher relative to the benchmark currency in recent weeks even though US economic growth and a resurgent commodities segment had most market watchers expecting the Australian …
