Market Update 29 July 2022 Investment markets & key developments The bounce back in shares continued over the last week on hopes that slowing growth will see central banks ease up on the pace of monetary tightening helped along by mostly good earnings results. However, while US and European shares rose, Japanese and Chinese shares fell. The positive global lead along with a less bad than feared CPI result reducing the risk of a …
Econosights: Global growth fears – are we heading into a recession? Key points Global growth is slowing as fiscal and monetary policy are tightening. High inflation means that interest rates will be increased further from here. Recession indicators (an inversion in the US 2/10 year yield curve and the bear market in global shares) are showing increased odds of a recession in the next 12-18 months. We have lowered Australian GDP forecasts and now see …
The threat to Australian house prices from Coronavirus Key points The Australian housing market is at risk from the coronavirus recession Australia has now entered. A relatively short recession that sees unemployment rise to around 7.5% would likely only set prices back around 5% or so after which prices would bounce back. But a deeper recession with say 10% unemployment risks tripping up the underlying vulnerability of the housing market around high prices and high …
