Australian Fixed Income outlook- Domestic economy gets a kick start but global trade a risk

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Domestic Investment Opportunities – credit still a focus Western Asset, a leading fixed income investment manager affiliate of Legg Mason, in its recent midyear market outlook notes: “Trade negotiations have caused a substantial drag on sentiment, particularly over the past year. This has been feeding into softer trade figures and economic data, particularly manufacturing data, […]

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Weekly market update – week ending 2 August, 2019

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Investment markets and key developments over the past week It was back to “risk off” over the last week as the resumption of the US/China trade war, a less dovish than expected Fed and mixed economic data pushed global share markets down. The Australian ASX 200 followed the All Ords index to a new record […]

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Takeaways for the loan market after the Fed cut

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The U.S. Federal Reserve (Fed) has cut its policy rate for the first time in more than a decade, marking just the fourth time over the past 20 years that the Fed has pivoted from raising to lowering rates. Boston – based Craig P. Russ, Co-Director of Floating-Rate Loans and Christopher Remington, Institutional Portfolio Manager at […]

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Australian shares hit record highs – is the decade long underperformance versus global shares over?

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Key points The long time taken for Australian shares to regain their 2007 high and their underperformance compared to global shares this decade reflects a combination of payback after their strong performance last decade, tighter monetary policy, the strong $A into 2011, the slump in commodity prices and property crash phobia. High dividend payouts are […]

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Insight Multi-Asset Weekly Update – all eyes on the Federal Reserve meeting Wednesday with a cut widely expected

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Market and economic review A positive week for risk assets, with US corporate earnings being well received by the market Global equities ended last week in positive territory on the back of positive share price reaction to Q2 2019 US corporate earnings mixed with disappointing global growth data. Government bonds moves were relatively muted: 10-year […]

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Weekly market update – week ending 26 July, 2019

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Investment markets and key developments over the past week Share markets rose over the last week helped along by positive news on trade, a deal to resolve the US debt ceiling and reasonable US earnings. While Australian shares slipped on Friday, they rose through the week helped by the positive global lead with the All […]

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CommSec Research: State of the States July 2019

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Overall Results How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements. Just as the Reserve Bank uses long-term averages to determine the level of ‘normal’ interest rates; we […]

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Reserve Bank defends inflation target

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Reserve Bank Governor speech Reserve Bank Governor speech: Governor Lowe delivered a speech titled “Inflation targeting and Economic Welfare.” Speeches from the Reserve Bank Governor can provide guidance on interest rate settings. What did he say and what does it all mean? Ahead of the speech, there was much conjecture on whether the Reserve Bank […]

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The longest US economic expansion ever – does this mean recession is around the corner?

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Key points Where the US economy goes is critical to the outlook for shares, including for the Australian share market. While the yield curve is flashing warning signs and issues around trade and Iran could cause short-term volatility, the excesses that normally precede US recessions – a spending boom, surging private debt and/or rising inflation/tight […]

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Insight Multi-Asset weekly update: European Central Bank meeting on Thursday likely to be the biggest market focus

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Market and economic review Risk assets trade sideways on busy week for growth data and US earnings Global equities ended last week broadly flat despite a busy period for global growth data and 20% of S&P 500 Index market cap reporting Q2 earnings. Earnings growth thus far has been slightly ahead of expectations, but in […]

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