Weekly market & economic update – week ending 26 September, 2014

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Investment markets and key developments over the past week Share markets had a rough week weighed down by a combination of worries about the Fed, tough action against US companies seeking to reduce their tax by relocating outside the US, worries about Chinese growth, geopolitical concerns and worries about the loss of breadth in the

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Weekly market & economic update – week ending 5 September, 2014

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Investment markets and key developments over the past week Share markets were mixed over the last week with Eurozone shares up on the ECB’s monetary easing and talk of a ceasefire in Ukraine, Japanese and Chinese shares up but US shares down partly on worries that strong data might bring forward a Fed rate hike

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Weekly market & economic update – week ending 17 October

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Key events of the past week and implications The past week has seen shares and growth related trades rally strongly as the US budget crisis came to an end. As a result, all of the major policy and geopolitical threats facing investors a couple of months ago – Syria, Italy, the German election, the Fed’s

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The threat of inflation in Asian & emerging markets

Key points Rising inflation is becoming a major concern in Asia and other emerging countries. So far it’s largely due to higher food prices. Non-food inflation remains reasonably benign. However, with strong growth having used up excess capacity and monetary conditions remaining easy, a flow on to higher non-food inflation is a growing risk. As

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Weekly market & economic update – 21 January 2011

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Headline developments An acceleration in Chinese economic growth in the December quarter to an estimated annualised pace of around 12% along with ongoing inflation worries have reinforced the case for further Chinese tightening in the months ahead. While inflation fell back to 4.6% in December from 5.1% in November this looks like a temporary reprieve

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Weekly market & economic update – November 19 2010

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Headline developments of the past week Worries about Europe’s debt problems and tightening in China were again key issues for investors over the last week, and had the effect of initially pushing share markets down ahead of a reversal later on as some of the fears receded. Europe seems to be moving pretty quickly this

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Weekly market & economic update – 12 November 2010

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Headline developments of the past week Shares, commodities and commodity currencies like the Australian dollar have had a tough week partly on renewed European debt concerns and worries that further Chinese monetary tightening in response to rising inflation will threaten China’s economy and hence the global recovery. European sovereign debt problems have reared their ugly

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Weekly Market & Economic Update, 15 October 2010

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Headline developments of the past week After 28 years in the dogbox on the back of falling commodity prices and poor economic management the Australian dollar spiked above parity against the $US, briefly reaching $US1.004 before falling back to just above $US0.99. The return to parity has taken a bit longer than I first thought

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Are shares good value & what about bank deposits?

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Key points Shares are cheap using forward price to earnings ratios and when comparing the level of the dividend yield to the bond yield. Thanks to low government bond yields and higher dividend yields, shares should provide a good risk premium over bonds for the decade ahead. While Australian bank deposit rates are attractive for

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