ABE Weekly 05/08/2020 Market Update So probably no surprise that the RBA kept rates unchanged at 0.25% - there is still a school of thought that suggests rates may turn negative - can you imagine being paid to borrow money and having to pay the bank to save. You can feel the frustration in the air as people really start [...]
ABE Weekly 29/07/2020 Market Update It has been another interesting week in financial markets where despite continuing global increases in COVID cases, risk assets continue to push higher with the US$ gold price increasing strongly towards US$2,000/oz on the back of more upcoming global money printing and a weakening US$. One example of this of course was the recent successful European agreement on a massive Euro1.8 trillion stimulus package. [...]
ABE Weekly 22/07/2020 Market Update It’s starting to feel a little like groundhog-day unfortunately. Like Denis Denuto said in “The Castle”, it’s all about the Fed, it’s about COVID, well it’s just about the Fed, oh and maybe China. It seems the Fed has the whole world wrapped around its finger. If the Fed sneezes, we all catch a cold, perhaps not the best analogy [...]
ABE Weekly 15/07/2020 Market Update The big news once again belonged to the second or third wave of renewed COVID-19 outbreak with Melbourne’s renewed lockdown costing an estimate $1bn per day. Westpac’s Bill Evans estimated a further 0.2 percentage point hit for overall growth this year. ‘‘We have slightly lowered our annual forecast for 2020 from a contraction [...]
ABE Weekly 08/07/2020 Market Update The RBA left interest rates as expected unchanged at 0.25% with consumer and business confidence one of the major concerns. This uncertainty clearly means that interest rates will continue to stay low for a prolong time and Dr. Lowe further said that "The substantial, co-ordinated and unprecedented easing of fiscal and monetary policy in Australia is helping the [...]
ABX Weekly 01/07/2020 The major headline this week belongs once again to the renewed anxiety of the resurging number of the virus outbreak in Melbourne with news of Coles and Woolworths having reinstated purchase limits on toilet paper and paper towels across Australia as panic buying spreads to other states. On top of this we had Qantas announcing its much anticipated major [...]
ABX Weekly 24/06/2020 Market Update Financial markets had a quiet week and Government bond yields were steady with our 10y bond currently sitting at 0.91%. One of the major economic announcements was the Australian jobless rate which hit 7.1% in May up from 6.2% in April (highest unemployment since October 2001) which was slightly higher than [...]
ABX Weekly 17/06/2020 Market Update It seems there is no end to the Central Bank bubble. The Fed Reserve continues to implement any form of QE it can to stimulate the economy leaving the system even more saturated with cash. At the risk of giving the system indigestion the Fed will continue with its stimulus program [...]
ABX Weekly 10/06/2020 Market Update Clearly equity markets are very overbought in the short term and are well overdue for some pull back which would be very healthy as there are still many very uncertain factors to be considered and there is still a long way back to some sort of normality. Some current economic releases of the US job openings and [...]
ABX Weekly 20/05/2020 Market Update The Australian economy is slowly being reopened and Treasurer Josh Frydenberg has expressed the opinion that the time was right to start boosting employment and bringing people back to work. Treasury analysis predicts that close to 400,000 people in the food and accommodation workforce should be back by July [...]