Weekly market update – week ending 14 February, 2020

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Investment markets and key developments over the past week Share markets generally rose over the last week but gains were constrained by ongoing concerns about the coronavirus outbreak after China announced a large increase in new cases. Reflecting the generally positive global lead Australian shares managed to push back up to around their January record […]

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Fidelity International Analyst Survey: A watershed year for ESG

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As we enter a new decade,  has uncovered a tipping point for corporates globally as they recognise that considering environmental, social and governance factors is not just the right thing to do, but good business too. This year, 90 per cent of Fidelity International’s analysts report that some or all of the companies they cover […]

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Short and Sharp: Have markets developed immunity to the coronavirus?

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Principal Global Investors Chief Strategist, Seema Shah addresses the ongoing impact of coronavirus. “2020 to date has been no stranger to sharp sell offs, followed quickly by big rebounds. In an environment where the pace at which tail-risks can affect asset prices is elevated and where there is still plenty of angst, surrounding not just […]

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Insight Multi-Asset update – week beginning 11 February, 2020

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Market and economic review As the week progressed fears of the coronavirus seemed to somewhat abate which, with the help of constructive data releases, allowed global equities to move to new all-time highs. Government bond yields moved higher, reversing part of the strong rally the market has seen since the turn of the year. In […]

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Impact of Novel Coronavirus (2019-nCoV)

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Economic and financial perspectives Novel (new) Coronavirus pneumonia (NCP): Since the world was alerted to the outbreak in mid-January, metal and energy prices have fallen 10-15 per cent but global sharemarkets remain supported. The coronavirus outbreak has affected global economic activity especially travel, leisure, mining and energy sectors. Background The novel coronavirus outbreak began in […]

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Weekly market update – week ending 7 February, 2020

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Investment markets and key developments over the past week Global share markets rebounded over the last week on optimism the coronavirus outbreak will be contained and helped by solid earnings results. Australian shares benefitted initially from the global rebound but gains were reversed reflecting the greater exposure to China of the Australian economy and as […]

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Reserve Bank Governor reflects on ‘nirvana’

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Testimony to Parliament Reserve Bank Governor testimony: Reserve Bank Governor Philip Lowe spoke to the House of Representatives Economics Committee. The Reserve Bank Governor said that economic nirvana is inflation at 2.5 per cent, unemployment at 4 or 4.5 per cent and wage growth of 3.5 per cent. The Governor believes our economy has become […]

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The China Coronavirus outbreak – economic and investment market implications

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Key points The China coronavirus outbreak has led to concerns of a global pandemic triggering an economic downturn. > Our base case is that the outbreak will be contained allowing share markets and bond yields to rebound. > However, uncertainty is high given that the coronavirus is more contagious than SARS albeit with lower mortality. […]

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Reserve Bank Governor paints a positive picture

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Reserve Bank Governor speech Reserve Bank Governor speech: Governor Philip Lowe delivered a speech: “The Year Ahead”. What does it all mean? The Reserve Bank Governor Philip Lowe has indicated that the current level of interest rates is low enough to support the economy. He hasn’t ruled out further rate cuts – especially if the […]

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Insight Multi-Asset update – week beginning 3 February, 2020

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Summary  Markets focus on the potential economic impact of the coronavirus as the confirmed cases and death toll rise. With data still suggesting tentative signs of stabilisation, the Federal Reserve meeting offers little to chew on. A busy week for US earnings but share price reaction remains muted. Outlook: US primary elections begin, several central […]

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