Equity markets can survive this crisis

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The market has reacted sharply over the past week as news of COVID-19 continues to dominate. The policy response has been to encourage social distancing to slow the pace of contagion. However, this clearly has a very negative impact on a range of industries (tourism, restaurants etc.) especially small business and on the economy. Concerns […]

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National rental vacancy rates decline in February

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New data released by SQM Research has revealed the national residential rental vacancy rate declined in February 2020 to 2.0% from 2.1% recorded in January, with the total number of vacancies Australia-wide now at 68,079 vacant residential properties. Most states recorded minor declines in vacancy rates with the exception of Hobart which recorded a 0.3% […]

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Biggest decline in tourist arrivals in 8 years

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Chinese economic activity contracts Tourism; Chinese economic data; Reserve Bank statement Tourism: Tourist arrivals fell by 3.3 per cent in January to be down by 2 per cent from a year ago – the biggest annual decline in 8 years. Aussie tourist departures fell by 1 per cent in January, but were up 1.5 per […]

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The COVID-19 coronavirus crisis

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Economic and financial perspectives Just over a month ago, on February 10, we wrote our first report on the COVID-19 coronavirus outbreak. At that time it was known as the Novel (new) Coronavirus pneumonia (NCP). We updated the situation on February 28 and we now provided a further update on the current situation with the […]

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Weekly market update – week ending 13 March, 2020

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Investment markets and key developments over the past week Share markets collapsed over the past week as concerns about the global economic impact of the coronavirus intensified, oil prices plunged as part of the secondary impact and policy responses by President Trump and the ECB were seen as not enough. Australian share fell around 20% […]

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Coronavirus delays property development but REITS resilient in volatile market

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Both local and global REITS are expected to be relatively resilient in the face of recent market turmoil. Property projects such as shopping centres and apartment developments will not be immune to the global coronavirus outbreak, with impacts including supply chain delays and lower foot traffic. Nevertheless, the sector continues to be a defensive play […]

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Economic Stimulus Package

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Economic news The Federal Government has compiled a $17.6 billion package of measures that aim to support businesses and the most vulnerable consumers in the wake of the COVID-19 coronavirus pandemic. The details of the package are at: https://treasury.gov.au/coronavirus The stimulus package will provide support for business and the overall economy. The Big Picture The […]

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Average mortgage lifts at fastest pace in 16yrs; Aussie consumers experience FOTU

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Consumer sentiment; Lending; Health package; RBA speech Health package: The Federal Government has unveiled a $2.4 billion health package to assist Australians in the wake of the COVID-19 coronavirus outbreak. Home loans: The value of home loans rose by 4.6 per cent in January with owner-occupier loans up 5.0 per cent and investor loans up […]

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The increasing economic threat from coronavirus – what to watch for and what should investors do

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Key points The rout in financial markets has continued, on the back of coronavirus, made worse by a flow on to oil markets. The risk of a deeper hit to economic activity has risen. Key things to watch are the daily number of new cases, measures of economic stress and policy stimulus. Key things for […]

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Oil price war: Petrol may hit $1 a litre

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Weekly petrol prices Oil price war: A production agreement between OPEC+ nations (largely OPEC and Russia) has ended. Global oil prices fell 10 per cent on Friday and fell another 26 per cent today. Petrol prices: Due to a holiday in Canberra, the Australian Institute of Petroleum will publish the regular weekly national average petrol […]

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