Weekly market update – week ending 5 March, 2020

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Investment markets and key developments over the past week Share markets had a very volatile week – helped initially by more policy easing globally with both the Fed and the RBA cutting interest rates but only to get hit again by intensifying coronavirus concerns. While Chinese shares briefly made it back to their January high […]

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CPD: 5 big questions the RBA needs to answer in 2020

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After extremely strong fixed income returns in 2019, the interest rate outlook for 2020 is far more sanguine as the odds of continued interest rate cuts from the Reserve Bank of Australia (RBA) looks lower than last year. Furthermore when interest rates make moves in the magnitude of last year, they are rarely followed in […]

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Weekly market update – week ending 28 February, 2020

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Investment markets and key developments over the past week Share markets plunged over the last week on the back of a rapid escalation of new coronavirus (Covid-19) cases outside China – notably in Korea, Italy and Iran – and concern that (whether its labelled a pandemic or not) it will disrupt economic activity more deeply […]

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Can past pandemics guide investors through Coronavirus?

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The Wuhan coronavirus outbreak began with 50 known cases in mainland China in December. It’s since resulted in over 78,000 known cases—2,120 fatal—across over 27 countries, with 14 known cases in the United States as of this writing. The US government has imposed a ban on foreign nationals traveling from China, a move that China’s foreign ministry […]

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Corporate Australia retains optimism

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Business investment Past business investment: New business investment (spending on buildings and equipment) fell by 2.8 per cent in the December quarter (consensus +0.5 per cent) to be down by 5.8 per cent over the year. Expected business investment: The fifth estimate of spending in 2019/20 was $120.3 billion, up 2.8 per cent on the […]

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EM debt relatively unscathed by coronavirus – so far

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Thus far, emerging markets debt has been relatively unscathed by the coronavirus, driven by expectations that the impact on growth will be temporary, and that central banks will intervene with lower rates. The Emerging Markets Debt team at Eaton Vance, a global investment manager, notes: Obviously, the risk to EM debt will likely grow if […]

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The increasing spread of Coronavirus – updated economic and investment market implications

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Key points While reported new coronavirus cases in China have slowed, the pickup in cases outside China has led to a renewed sharp fall in share markets and bond yields. Our base case is that the outbreak will be contained allowing share markets and bond yields to rebound in the June quarter. However, the hit […]

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East Coast petrol prices to hit $1.20-$1.30 a litre. Canberra, Darwin & Perth petrol prices fall.

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Weekly petrol prices Petrol prices: According to the Australian Institute of Petroleum, the national average price of unleaded petrol fell by 2.2 cents to 146.1 cents a litre last week. East Coast petrol prices fall: According to data from MotorMouth, average daily unleaded retail petrol prices have fallen by between 19-30 cents a litre in […]

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Weekly market update – week ending 21 February, 2020

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Investment markets and key developments over the past week Global share markets mostly fell over the last week on ongoing concerns about the coronavirus outbreak, particularly after several US companies warned of disruptions to supply chains and sales. Chinese shares managed to rise though as China continued to role out new stimulus measures. Australian shares […]

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Global backdrop remains supportive amidst coronavirus outbreak

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Macroeconomic overview Recent macro data has been somewhat mixed – stronger than expected in the US, weaker in the Eurozone and disappointing in Japan. But, although disruptions from the coronavirus outbreak are likely to impact incoming data, particularly in Asia, we believe that the global backdrop remains supportive. US consumer sentiment has improved, the labour market added […]

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