Weekly market update – week ending 10 July, 2020

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Investment markets and key developments over the past week Share markets were mixed over the last week as investors were torn between rising coronavirus cases and US/China tensions on the one hand but indicators of recovery and policy stimulus on the other. US shares rose but gave up some of their initial gains, Eurozone shares... Read more continue reading

It’s a long way from here to full employment- the RBA is happy with progress but it’s still early days

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The RBA hasn’t purchased any bonds since early May. This means that so far it has ‘only’ bought roughly $50B of government bonds – far fewer than initially expected – under its yield curve control (YCC) policy which aims to keep the 3 year government bond yield at about 0.25% and ensure smooth functioning of... Read more continue reading

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... Read more continue reading

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... Read more continue reading

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... Read more continue reading

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... Read more continue reading

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.... Read more continue reading

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%... Read more continue reading

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... Read more continue reading

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... Read more continue reading