Global Equities – March rebound Global equity returns enjoyed a modest 2.6% rebound in March, after a decline of 1.0% in February and a larger 6.1% decline in January. The rebound appears to reflect optimism that prospective U.S. interest rate increases should not unduly slow global...
Cash injection to provide short-term cost relief We review the Australian Federal government’s 2022/23 budget and assess its implications for Australia’s financial markets. •This is a pro-growth budget that emphasises cash payments to alleviate near-term cost of living pressures on consumers. These measures are mostly temporary in...
On 29 March 2022, the Government handed down the 2022-23 Federal Budget. Whilst we know this is a pre-election Budget, with the next Federal election to be held in May 2022, it is possibly not a typical pre-election Budget full of spending promises. This is perhaps...
Key global market moves – war and rates hurt sentiment Global equity prices weakened a further 1.1% in February after a sharp 6.2% decline in January, as persistent global interest rate and inflation worries were joined by a new risk factor – Russia’s assault on Ukraine...
Key global market moves – rate fears rattle stocks Global equities suffered a sharp fall in January as rising bond yields placed downward pressure on price-to-earnings valuations, especially among growth stocks. The yield on U.S. 10-year bonds surged 0.27 percentage points to 1.78%, as high U.S. inflation...
Despite rising bond yields last year, the strong V-shaped recovery in global equity markets from the COVID crisis of early 2020 largely continued over 2021, powered by ongoing growth in corporate earnings. U.S. equity performance remained preeminent, though there were sector winners among both value...
Key global market trends – rates and COVID spark concern Global equities suffered a setback in November reflecting concerns about both the Omicron COVID variant and a hawkish pivot by the U.S. Federal Reserve. Bond yields and commodity prices eased over the month, while the $US...
Global equities rebounded in October – despite a further lift in bond yields – as another strong U.S. corporate earnings reporting season and signs of peaking in the Delta outbreak supported sentiment. The key market development was the strength in U.S. corporate earnings, despite widespread cost pressures...
Global equities suffered a setback in September as a rebound in bond yields dragged down still lofty price-to-earnings valuations. The key market development in the month was a more hawkish than expected Federal Reserve policy meeting, which suggested a tapering in bond purchases would be...
Global equities rose 2.6% in August, and the outlook remains encouraging. Global forward earnings accounted for most of the increase in equity prices, rising 1.9%. Despite a renewed wave of global COVID cases, rising vaccination rates have meant fewer are ending up in hospital or dying...