ABX Weekly 24/07/2019
ABX Weekly 24/07/2019 Today RBA governor Philip Lowe gave a keynote speech titled Inflation Targeting and Economic Welfare Here are the key points: RBA governor Philip Lowe says the board is prepared to cut interest rates further if the economy does not grow fast enough “It is highly unlikely that we will be contemplating higher interest […]
ABX Weekly 17/07/2019
ABX Weekly 17/07/2019 Market Update Good morning, US equities fell after US President Trump said he could impose more tariffs on China. US interest rates and the US dollar rose after strong US retail sales data. The combined news sent AUD/USD and NZD/USD lower. The AFG mortgage index for June 2018 released a week ago is showing emerging […]
ABX Weekly 10/07/2019
ABX Weekly 10/07/2019 Market Update An example of a once considered abnormal circumstance but now viewed as being normal is the prevalence of negative-yielding bonds yields. Thought to be an outlier phenomenon limited to Japan, has now become a common sight around the globe. By the end of May 2019, an astounding 21% of all […]
ABX Weekly 5/07/2019
ABX Weekly 05/07/2019 Market Update A ceasefire between the US and Australia’s biggest trading partner, China, is a positive in that it should keep our strong export story going. This is with a weak currency, robust demand, and supply-side constraints already acting as tailwinds, particularly for the likes of iron ore. Indeed, the Department of […]
ABX Weekly 26/06/2019
ABX weekly 26/06/2019Market Update US President Donald Trump’s announcement of sanctions on Iran’s supreme leader, Ayatollah Ali Khamenei, seem to be a tactic aimed at annoying Iranians rather than doing any real damage to the country’s already battered economy. If that was the idea, it has been a complete success, with state media saying the move […]
ABX Weekly 05/06/2019
ABX weekly 05/06/2019 Market Update The Reserve Bank of Australia (RBA) has lowered the official cash rate in their June meeting by 0.25% to record lows of 1.25%. The move breaks a 34-month streak of no movement to allow the stimulus to the Australian economy. The RBA has cited concerns on the lack of global […]
ABX Weekly 29/05/2019
ABX weekly 29/05/2019 Market Update The White House is seeking to cast its tariff net wider, potentially eyeing countries deemed to have undervalued currencies. The latest proposal would let U.S. companies seek anti-subsidy tariffs on imports from nations the Treasury Department finds to be engaged in competitive devaluation of their currencies. While no nation currently […]
ABX Weekly 15/05/2019
ABX weekly 15/05/2019 Market Update Whatever hopes existed for a breakthrough on trade between the U.S. and China were dashed over the week as both sides seemed to harden their positions. President Donald Trump doubled-down on his claim that Beijing broke the deal, while Chinese state media blamed him for the impasse and emphasised the Asian […]
ABX Weekly 8/05/2019
ABX weekly 08/05/2019 Market Update The Australian Bond Exchange correctly forecast that the RBA would keep interest rates unchanged at the May Board meeting. While the market was uncertain of the outcome, with over 50% of market participants predicting a cut in rate, the analyst here did not believe the RBA had enough information to justify […]
ABX Weekly 1/05/2019
ABX weekly 01/05/2019 Market Update The S&P 500 closed at record all-time closing highs Friday. This was due to US Q1 GDP coming in strongly @3.2%, well above the previous 4Q18’s GDP growth of 2.2% and market expectations. The Goldilocks range dominates, as corporate earnings do enough to maintain these record stock prices but with modest […]