Weekly Market Update – 26th August 2022
Investment markets and key developments over the past week Sharemarkets were down over the week reflecting a pause in the rally that started in mid-June, but mostly because of hawkish comments from US Federal Reserve (Fed) chair Powell’s highly anticipated speech at the Jackson Hole central bank meeting. US shares were down 4%, with all sectors down except for energy. Australian shares are down slightly (-0.2%) with all sectors down except for energy, utilities and materials. European shares were down by 3.4%, Japan -1.0% and Chinese [...]
A Finsec View – Inflation (again), productivity and wages, financial habits of dog owners, scam alert and more.
26th August 2022 Well, this is fun. Despite central bankers and economists continuing to warn a global recession is possible if inflation is not brought under control and consumers start to curb their post-pandemic spending, global sharemarkets have rallied strongly since the lows of mid-June. It’s a rally that has been dubbed the “most hated” because it is precisely what governments and monetary authorities don’t want to see - a sign there is still plenty of liquidity in the system and consumers can handle even [...]
Weekly Market Update – 19th August 2022
Investment markets and key developments over the past week The global share market rebound faltered a bit over the last week with mixed economic data and mostly hawkish messages from central banks. US and European shares were little changed, Japanese shares rose and Chinese shares fell. The Australian share market rose solidly though helped by strong earnings results for some companies led by strong gains in retail, resources and industrial stocks. Bond yields generally rose, although they fell a bit in Australia. Oil, metal and iron [...]
Weekly Market Update – 12th August 2022
Investment markets and key developments over the past weekThe share market rebound continued over the last week helped by weaker than expected US inflation data. Australian shares were little changed though with strong gains in resources largely offset by sharp falls in IT, health and property shares. Bond yields generally rose as the fall in yields in prior weeks had gone a little too far too fast. Oil prices rose partly due to US supply disruptions and increased demand forecasts on the back of higher gas prices. [...]
A Finsec View – Elephants in finance, Meme stocks (again), The Line, Vale Phil & More
12th August 2022 Have we seen the bottom of the market? That's the question day traders and equity managers worldwide are asking after an unexpectedly robust start to the year's second half. In the US, the S&P 500 (tracking the market's biggest stocks) is up around 6.95 per cent over the past month. Locally, the S&P 200 is up around 6.4 per cent over the month. Adding to the good news was last night's US inflation figures showing headline inflation has fallen by 0.5%. Of [...]
Weekly Market Update – 5th August 2022
Investment markets and key developments over the past week The rebound in share markets continued over the last week, helped by good earnings data and relief that increased China/US tensions resulting from US House Speaker Nancy Pelosi’s visit to Taiwan did not spill over into a more serious conflict (at least not yet). Despite a slight set back on Friday, as strong US payrolls data were seen as keeping the US Federal Reserve (Fed) hawkish for now, for the week US shares rose 0.4%, Eurozone shares [...]
Weekly Market Update – 29th July 2022
Investment markets and key developments over the past weekThe bounce back in shares continued over the last week on hopes that slowing growth will see central banks ease up on the pace of monetary tightening helped along by mostly good earnings results. However, while US and European shares rose, Japanese and Chinese shares fell. The positive global lead along with a less bad than feared CPI result reducing the risk of a further step up in RBA rate hikes pushed the Australian share market higher, with gains [...]
A Finsec View – Lowe’s charts, The great reallocation, Stumbling towards retirement, Megatrends and More
29th July 2022 Has there ever been more general public interest in inflation? It's even reached the unusual point where the Prime Minister, Anthony Albanese, has waded in, warning the Reserve Bank against "overreach". Typically, Prime Ministers are expected to be on their 'best behaviour' when it comes to influencing the independence of the Central Bank. It certainly highlights how difficult it is for Central Banks right now. Their ability to raise cash rates is significantly different from pre-GFC and even pre-Covid due to the extraordinary [...]