Equity Markets Quarterly Commentary Q1 2025 [vc_video link='https://www.youtube.com/watch?v=dfUprYBoNu0'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Q1 2025 Global Equities The first quarter of 2025 saw Chinese and European equities outperform their US counterparts as government policy caused a rotation in global equities. However, the looming threat of large tariff...
Market Trends: February 2025 [vc_video link='https://www.youtube.com/watch?v=tYle0kT2Pxo'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Major Asset Class Performance Concerns over US tariffs led to a ‘risk-off’ month during February, with bond yields and equity prices generally lower. Among defensive assets, falling yields boosted fixed-rate bond returns, while safe-haven flows...
[vc_video link='https://www.youtube.com/watch?v=5g22qy6DrLI'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Asset Class Performance October was generally a risk-off period with declines in both global equity and bond returns. Solid US economic data and uncertainty ahead of the US Presidential election saw both bond yields and the $US rise,...
Market Trends Economy & Central Bank Outlook Continued benign US inflation reports and growing expectations that the US Federal Reserve would cut interest rates at the September policy meeting led markets to price in deeper rate cuts in both Australia and the US over August. Fed...
What to expect from markets and the economy in 2024 Having enjoyed a better than feared consumer-led recovery from COVID lockdowns, Australia’s economy in recent years has quickly been beset by a new problem: very high inflation, caused principally by stronger-than-expected demand running ahead of a...
Yielding to yields [vc_video link='https://www.youtube.com/watch?v=gbtZMmHy-WA'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Both defensive and growth assets weakened further in October, reflecting another solid increase in global bond yields. The Hamas attack on Israel was a major development in the month, which initially led to a spike in...
Higher for longer [vc_video link='https://www.youtube.com/watch?v=5-iEBhgqUUQ'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Market Overview Both defensive and growth assets weakened in September, reflecting a strong further increase in global bond yields. In turn, this reflected resilient global economic growth and expectations that policy rates would remain ‘higher for longer’. Growth...
Easing recession risk suggests the worst may be behind us Growth vs defensive assets Growth assets returned 0.5%, marginally beating the 0.3% return from defensive assets. Growth assets have outperformed solidly over the past 12 months. Defensive assets Global bond yields rose further in August as resilient economic growth reduced the risk...
Easing inflation fuels hopes of soft landing Growth vs defensive assets Global equities rose further in July despite continued upward pressure on bond yields as central banks retained firm policy tightening biases. With corporate earnings still broadly flat, the gain in equities reflected a further lift in...
Recession averted? Global markets The key development over the past week was the weaker-than-expected US CPI result, which has reduced the risk of further aggressive Fed action that ultimately pushes the economy into recession. According to Fed comments, it still seems likely the Fed will hike at next month’s...