Weekly market & economic update: week ending August 16

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Key events of the past week and implications The past week saw more good data out of the US and Europe, but share markets were mixed with worries about Fed tapering weighing and pushing bond yields higher globally. Several Fed officials have left the impression the Fed is on track to start tapering in September, but

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Weekly market and economic update

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The volatility in share markets remained over the past week as investors continued to fret about a premature tightening by the Fed putting upwards pressure on bond yields, worries that Japan will not be successful in boosting growth and inflation and as disappointment regarding Chinese data further fuelled concerns about growth in emerging countries generally.

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Weekly economic and market update

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Share markets remain twitchy with ongoing worries about the Fed tapering its quantitative easing program at a time when economic data is mixed, disappointment that Japan’s reform program lacks details and will take time, and in Australia poor growth figures combined with the RBA’s failure to ease again adding to worries about the economic outlook.

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Economic growth…but softer beneath the surface

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Economic growth in the March quarter in Australia was 0.6% or 2.5% year on year. While this was broadly as expected it highlights that growth in Australia is now running well below its trend pace which is around 3 to 3.25%.   What’s more if you scratch below the surface the economy is actually quite

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Oliver’s Insights: worries about sharemarket volatility

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This edition of Oliver’s Insights looks at the recent volatility and correction in share markets. The key points are as follows: After strong gains shares were due for a correction. Worries about the Fed, Japan, China and the growth outlook in Australia have provided the trigger.  However, with Fed tightening fears overdone, the US economy on a

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Weekly economic and market update

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Investment markets remained jittery over the last week as nervousness continues about the Fed slowing the pace of stimulus, bond yields continued to rise with some fearing a 1994 style bond crash and as expensive defensive high yield shares continued to correct in Australia not helped by foreign investors selling down their yield plays as

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Weekly market and economic update

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The past week saw sharp falls in share markets from mid week triggered by a combination of worries that the US Federal Reserve will prematurely slow down its quantitative easing program, a softer than expected manufacturing conditions PMI in China and worries that a back up in Japanese bond yields will hamper efforts to boost

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Oliver’s Insights: Risk on, risk off

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This edition of Oliver’s Insights looks at the phenomenon of “risk on/risk off” that has seen listed growth assets like shares, corporate debt, commodity prices and the Australian dollar move together. The key points are as follows: The “risk on/risk off” pattern that has prevailed in investment markets since the global financial crisis (GFC) is

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Weekly market & economic update

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Global shares continued to move higher over the last week, but another trend that’s clearly evident is the continuing slide in the $A. The past week saw it fall decisively below parity and then keep going. A negative reaction to the budget didn’t help but the big drivers of the falling $A are a downtrend

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Oliver’s Insights – Australian budget 2013

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The attached edition of Oliver’s Insights takes a look at the Australian Government’s 2013-14 Budget. The key points are as follows: The positives in the Budget are more for education, disability care & roads and savings in middle class welfare. However, the deficit is far worse than expected, with a surplus pushed out at least

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