Weekly market update – week ending 3 July 2020

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Investment markets and key developments over the past week Despite ongoing concerns about coronavirus most major share markets saw solid gains over the last week helped by good economic data, positive vaccine news and policy stimulus. Japanese shares fell but US shares rose 4% in a holiday shortened week, Eurozone shares rose and Chinese shares […]

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The US presidential election – implications for investors

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Key points The run up to the US election on 3rd November has the potential to see increased share market volatility if it looks increasingly likely Biden will win and if Trump ramps up tensions with China (and maybe Europe) in response. However, this is likely to be short lived as there is no reason […]

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Weekly market update – week ending 26 June,2020

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Investment markets and key developments over the past week Most major share markets fell over the last week as concerns about “second waves” of coronavirus cases, uncertainty about the growth outlook and geopolitical risks continue to rattle investors. The weak global lead and concerns about rising cases in Victoria also contributed to a fall in […]

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Weekly market update – week ending 19 June, 2020

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Investment markets and key developments over the past week Share markets rose over the last week as ongoing signs of economic recovery and stimulus measures helped offset concerns about a “second wave” of coronavirus cases. US shares gained 1.9%, Eurozone shares rose 3.1%, Japanese shares rose 0.8% and Chinese shares rose 2.4%.  Australian shares also […]

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Liquidity and debt – who’s buying?

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The COVID-19 global market rout has generated levels of market volatility not seen since the 2008 Global Financial Crisis. Central bankers have responded to the shock to growth by following essentially the same playbook: cutting interest rates to zero as rapidly as possible, followed up with quantitative easing and other programs to support financial markets. […]

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Weekly market update – week ending 12 June, 2020

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Investment markets and key developments over the past week Share markets fell sharply over the last week on concerns about a second wave of cases in many US states and the pace of economic recovery after cautious Fed comments. This came after a huge rally since the March lows – with US shares rising 44% […]

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Health, economy and markets – What to look for on the road to recovery

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The public health conversation has shifted to focus on when and how public life and economic activity can return to normal around the world. In a note to investors, Ron Temple, Co-Head of Multi-Asset and Head of US Equity, shares his thoughts what to look for on the road to recovery. Economic update The US […]

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GSFM’s Stephen Miller comments on the Federal Reserve June statement

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Fed forecasts no increase in rates until at least the end of 2022 The Federal Reserve projected interest rates will remain near zero through 2022 with the Fed’s ‘dot plot’ revealing a flat profile out to end 2022. The Fed also pledged to maintain at least the current pace of asset purchases at approximately $80b per month As part […]

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Shares climb a “wall of worry” – but is it sustainable

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Key points The strong rally in shares since their March lows reflects a combination of economic reopening, signs of recovery, policy stimulus and once pessimistic investors closing underweight or short positions. Shares are vulnerable to a short-term consolidation or pullback. But if we are right, and April was the low in economic conditions, then shares […]

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Refinancing of home loans soars to record highs

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Lending; Chinese inflation Home loans: The value of home loans fell by 4.8 per cent in April (consensus: -10 per cent) with owner-occupier loans down by 5- per cent and investor loans down by 4.2 per cent. First home buyers: The value of owner occupier first home buyer home loan commitments hit a decade high […]

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