ABX Weekly 31st October 2018 Market update
Everything is fixed! Equities recouped some of the losses over the week. S&P500 currently up 0.8%, while key commodities oil and copper fell amid US-China trade concerns. The US dollar benefitted from disappointing Eurozone data and a Brexit warning from S&P.
The big event this week was the resignation of Angela Merkel as she will step down as Chancellor of Germany. But more on that from our European Desk.
Brewin’ with Nguyen
With all the risk off sentient from other markets over this week I had some feedback from clients that are extremely thankful that they received the coupon payments from their Centuria Fixed and Floating bonds recently. A lot of my clients are retirees and hence living off a fixed amount of assets and the income it provides. At a time when market sentiment was down and the risk of lower or zero dividends, they were grateful that they could rely on the stability of the bond coupons. It is easier to sleep at night knowing that all you have left is safe.
The regional election in Germany once again was a big disaster for the two main leading parties and longstanding German leader Angela Merkel. Nobody knows what the full impact will be with the current coalition government in Berlin. One thing is for certain – there will be some changes!! This political uncertainty plus the trade war with the US will keep the ECB on the sideline for the foreseeable future. The recent weakness in the Euro vs the US$ should provide some boost to the European economies but we doubt that this will be enough to offset all this uncertainty created by the political uncertainty all over the continent.
Follow Us @AusBondExchange
Check out our weekly insights of all things financial here! ABX weekly 31/10/2018
Australian Bond Exchange Pty. Ltd. (“ABX”) provides both general and specific financial product advice. This document and any information, advice or recommendation has been provided by ABX without taking account of your objectives, financial situation or needs. Because of this, you should before acting on any information, advice or recommendation from ABX consider the appropriateness of the information, advice or recommendation, having regard to your objectives, financial situation and needs. If this document, or any information, advice or recommendation, relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a product disclosure document relating to the product and consider the document before making any decision about whether to acquire the product. ABX, its directors, representatives, employees or related parties may have an interest in any companies or entities, or any financial product issued by companies and entities, and may earn revenue from the sale or purchase of any financial product, referred to in this document or in any information, advice or recommendation. Neither ABX, nor any of its directors, representatives, employees, or agents, make any representation or warranty as to the reliability, accuracy, or completeness, of this document or any information, advice or recommendation. Nor do they accept any liability or responsibility arising in any way (including negligence) for errors in, or omissions from, this document or any information, advice or recommendation. Any reference to credit ratings of companies, entities or financial products must only be relied upon by a “wholesale client” as that term is defined in the Corporations Act 2001 (Cth). ABX strongly recommends that you seek independent accounting, financial, taxation, and legal advice, tailored to your specific objectives, financial situation or needs, prior to making any investment decision. ABX does not make a market in the securities or products that may be referred to in this document.