CommSec Morning Report
Latest news • In US economic data, consumer inflation expectations rose from 6.3% to 6.6% in May (survey: 6.2%). • European sharemarkets fell on Monday. Investors fear that aggressive rate hikes by the US Federal Reserve to control inflation could sharply slow global economic growth. Travel & leisure fell 5.3%, automakers fell by 4.5% and…
Are value stocks cyclical or defensive?
Investors may need to rethink their preconceptions about value investing. So far this year US value stocks have outperformed their growth counterparts by a whopping 21% (as at 24 May). But what’s behind the rotation? It can partly be explained by the huge spike in bond yields, which has seen the 10-year US Treasury yield…
Economic trends to watch in the second half of 2022
Rate hikes may slow growth this year, but the longer-term outlook could strengthen as monetary policy shifts to neutral and prices stabilize. The war in Ukraine has driven up the price of oil, gas and other commodities—leading to weakened global growth. Add soaring inflation and tight monetary policies to the mix, and the economic outlook…
The Australian housing game has changed
The Reserve Bank has lifted the cash rate for the second time in two months, this time by 0.50 points to 0.85%. It won’t be the last such hike. Forecasters expect the cash rate to hit 2.5% by the end of next year. This would lift the typical variable mortgage rate to near 5%. Cue…
Bonds are back – here’s why
It has been an extraordinary time for bond markets. As an asset class, fixed income is often seen as equities’ boring cousin, particularly over the past decade of low yields. Recent months, however, have been anything but boring, albeit for the wrong reasons. Bonds have seen a record decline, but may now be presenting some…
Evening report Friday
The Aussie sharemarket finished lower for the fourth time this week after the ASX 200 shed another 1.25 per cent or 87.7 pts, to 6932. All sectors finished lower for the 13th time this year. The Financials sector posted its fifth straight decline after it lost another 1.6 per cent. Mining stocks also weighed on…
Cyber safety a company culture matter
Listed businesses must be ready to respond when their operations are threatened by online criminals. Earlier this year, the World Economic Forum released its annual Global Risks Report 2022. Failure of cyber security measures was the number one risk for Australian executives, even before Russia’s invasion of Ukraine and the resultant increase in global instability….
Chinese-invested uranium mine exceeds production
WINDHOEK – Rossing Uranium, a Chinese-invested company in Namibia, exceeded budgeted production targets by a significant margin, as the 2,882 tonnes of U3O8 produced during 2021 represented a 16 percent increase compared to 2020, the company’s managing director Johan Coetzee said. To produce the product, the miner had to mine 20.7 million tonnes of rock…
Tesla’s factory resumes full production
SHANGHAI – U.S. carmaker Tesla’s Shanghai Gigafactory has returned to full production capacity. Over 40,000 vehicles have rolled off the production line since it resumed production on April 19, according to the company. Affected by the latest COVID-19 resurgence in Shanghai, the Shanghai Gigafactory once suspended production for over 20 days. The Gigafactory now implements…
Three ASX Listed Investments to Weather the Inflation Storm
Inflation and where to put your money Wage growth is inversely related to the stock market performance. Australia is currently experiencing record-low unemployment and rising wage inflation. Three investments to watch that historically buck the trend. While rising prices at the pump, grocer, and home are taking directly from consumers’ wallets, employers are helping out…
