Australian economy holds strong, property weak

  • Equity markets were mixed this week with US Tech and Asia up, Europe down, and Australia near flat.
  • In local stock news, AGL ended its plans to spin off its coal-fired power plant business whilst also announcing it would replace its chair, CEO, and other members of its board. The company plans to report back to shareholders in September with a new plan.

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Equity markets rise on Fed speak

  • Local and global equity markets trended higher this week with investors reading into US central bank minutes that a rate hike slowdown or pause may be on the cards come the September quarter.
  • In local stock news, Crown Resorts shareholders overwhelmingly approved its takeover by US private equity group Blackstone for $13.10 a share.

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US Fed hawkishness sees US dollar falter

A mixed week in equity markets with global developed markets lower, the Australian market flat, whilst Asian and emerging markets saw investor support as the US dollar weakened.

In local stock news, Viva Energy shares rose to all-time high after the Shell petrol station operator announced that it was enjoying unprecedented profit margins from its Geelong refinery, which allows the company to import crude oil rather than rely on overseas refineries.

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Commodity prices fall on Chinese growth concerns

  • Local and global equity markets were flat to weaker this week on concerns regarding rising global recession risks, with Chinese economic growth fears hitting commodity

  • In local stock news, Macquarie Group has reported a net profit after tax of $4.7 billion for the year to end of March, an increase of 56% on the previous year. The firm’s assets under management reached $775 billion during the period, up 37% on a year earlier. The big boost came from the commodities and global markets businesses.

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What financial mistakes have you made? Could they have been avoided?

Have you made a big financial mistake in the past? One that cost you a lot of time and money to fix? One that caused you a big headache? Financial stress can be a major trigger for a lot of people, it is a big burden to carry around, but not one you need to carry alone. Speaking to a professional Financial Adviser can set your mind at ease once you have a plan in place and a financial goal to build towards.

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Mixed signals for equity investors

  • Equity markets were mixed this week with US companies reporting strong results whilst the US central bank readied the market for a large rate rise next month.
  • So far, about 80% of the largest 500 US companies that have posted earnings results for the March quarter have beaten analyst expectations.

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Weak investor sentiment on rising risks

  • Equity markets were mostly weaker over the shortened week with higher than expected US inflation, increased covid restrictions in China, and the ongoing war in Ukraine affecting investor sentiment. The Aussie equity market wasn’t listening, finishing slightly higher.
  • Government bond yields rose strongly yet again on stronger than expected US inflation data before settling back down as investors saw value with US 10 year yields nearing 3% and Aussie 10 year yields moving above 3%.

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Markets retreat on hawkish Fed comments

  • Local and global equity markets fell this week following US central bank comments regarding reductions in their balance sheet, which appeared to be earlier and larger than the market was expecting.
  • Government bond yields surged again this week as markets continue to aggressively price in significant central bank rate hikes this calendar year to fight off rising and high inflation.

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US releases more oil

  • The local equity market finished higher for the week whilst global markets were mixed with emerging market equities receiving a boost.
  • Parts of the US government bond yield curve are inverting, where short-term bond yields are higher than long-term bond yields, usually a key indicator of an economic downturn or recession. Shorter-term bond yields are trying to reflect inflationary concerns whilst longer-term bond yields are reflecting that the economy isn’t robust enough for the central bank to fight inflation with significant rate rises.

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Aussie dollar pushes higher on risk-on sentiment

  • Local and global equity markets rose this week as equity investors ignored the threat of higher interest rates and instead focused on US central bank comments regarding the strength of the economy.
  • In local stock news, casino operator Star has been embroiled in scandal after revelations that the business disguised $900 million in transactions as hotel expenses to help guests dodge controls over using the money for gambling, putting their casino license at risk.

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Equity markets recover post Fed lift-off

  • Local and global equity markets rose this week after the US central bank provided an optimistic outlook whilst the Chinese government pledged support for their economy and markets.
  • Chinese stocks staged a huge rebound after the government vowed policies to boost financial markets and increase economic growth. Tech giants were up more than 20%. The government will keep the stock market stable and support overseas share listings.

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