The falls in share markets this year – the bad news and the good | AMP Capital

The falls in share markets this year – the bad news and the good Key points Share markets remain under pressure from high inflation, rising interest rates and bond yields, the war in Ukraine and Chinese Covid lockdowns. It’s still too early to say markets have bottomed. However, it’s not all negative: we may have seen peak inflation in the US, share market earnings are still rising, Covid cases in China appear to be slowing …

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 …

Jobs and inflation to trigger higher rates? | AMP Capital

Jobs and inflation to trigger higher rates?   The labour market is strong, with higher employment levels than pre-COVID, a record participation rate and a low unemployment rate of four per cent. Alongside increasing inflation, that’s enough trigger a rise in the official cash rate by the Reserve Bank of Australia (RBA), most likely when the RBA board meets on Tuesday (3 May). The pace of Australian jobs growth slowed last month, but that was …

Econosights: The RBA, the neutral interest rate and how many hikes to expect | AMP Capital

Econosights: The RBA, the neutral interest rate and how many hikes to expect Key points Inflation is running hot around the world, driven by strong goods demand, global shipping and supply issues and high commodity prices. Higher than expected inflation in Australia will see the RBA lifting interest rates to at least 1% by Dec-2022 and 1.5% in the first half of 2023. A fall in inflation in 2023 from an easing in supply pressures …

Market Update 19 November | AMP Capital

Market Update 19 November   Investment markets & key developments Global share markets mostly rose over the last week helped by strong US economic data. US, European and Japanese shares rose but Chinese shares fell. Australian shares also fell with sharp falls in financials on the back of bank margin concerns and in resources stocks reflecting lower oil and iron ore prices. Bond yields were mixed – up slightly in the US and Australia but down …

Market Update 29 October | AMP Capital

Market Update 29 October   Investment markets & key developments Share markets were mixed over the past week – up in the US and Europe on strong US earnings results, but down in Japan, China and Australia. The Australian share market was hit by interest rate fears after a stronger than expected underlying inflation result and signs the RBA may be becoming more hawkish. Bond yields fell in the US and Europe but rose in Australia with …

Market Update 22 October | AMP Capital

Market Update 22 October Investment markets & key developments US shares made it to a new high in the past week helped by strong earnings results and good economic data, and Chinese shares rose but European and Japanese shares pulled back slightly. The positive US lead also saw Australian shares rise helped by reopening optimism led by gains from property, IT, retail and financial shares. Bond yields resumed their upswing with 10-year bond yields in the …

Capitalising on the COVID-19 recovery | AMP Capital

Capitalising on the COVID-19 recovery Australia’s strong economic recovery has certainly been interrupted by lockdowns across the country, but despite this short-term pain, we believe the economic momentum following the re-opening will bode well for commercial real estate and those investors able to find value from both traditional and alternative real estate sectors. It may feel like a surprising statement with many still in lockdown and case numbers stubbornly high, but we believe the time …

Econosights: Australian economic policy beyond COVID-19 | AMP Capital

Econosights: Australian economic policy beyond COVID-19   Key points The post-pandemic economic rebound is strong in Australia. But, after the initial bounce in activity, there is a need to reinvigorate the drivers of long-run economic growth. Productivity growth has been low in Australia and needs to lift to see a rise in incomes and living standards. Higher productivity growth is achieved through economic reform. Areas in Australia that deserve policy attention include: lifting household incomes …

Market Update 5 March 2021

Market Update 5 March 2021 Investment markets and key developments over the past week While share markets had a strong bounce early in the past week as fears around rising bond yields briefly eased they returned later in the week particularly after Fed Chair Powell reiterated the Fed’s dovishness but failed to signal significant concern or action to deal with rising bond yields. As a result, US, Japanese and Chinese shares fell for the week, …