Evening report 5 May 2022
Latest News The Aussie sharemarket snapped a three-day losing streak, with the ASX 200 climbing 0.8 per cent or 60 pts, to 7365. Today’s lift was driven by the US market’s performance, where major indices staged a solid rally after the US Federal Reserve – as expected – increased the Federal Funds rate by 50…
Reserve Bank lifts rates for first time in 11 years
Reserve Bank Board meeting The Reserve Bank (RBA) Board has lifted the target rate for the cash rate by 25 basis points (0.25 percent) to 0.35 per cent. The RBA chose a 25 basis points rate move to signal ‘getting back to usual’. The RBA increased the interest rate on Exchange Settlement balances from zero…
How long until mortgage rates climb?
Australian consumer prices jumped an extraordinary 2.1% in the first three months of the year, the biggest quarterly jump since the introduction of the 10% goods and services tax at the start of the century. The outsized increase, together with a larger than normal increase in the months to December, pushed Australia’s annual inflation rate…
Mining stocks buoyed by base metal strength
Stellar performances by nickel, lithium, uranium and iron ore in March drove some metal prices to new highs while zinc, copper and aluminium all closed the month stronger. Clarke Wilkins, Senior Australian Equities Analyst, responsible for the resources and energy sectors, looks at the major commodities and the sectors and stocks that have caught his…
What higher inflation means for Australians
Inflation in the US, UK and elsewhere has not been this high for decades. What does that mean for investors? American consumers are paying 8.5% more today for everyday goods than a year ago. That’s the highest rate of price increases in more than 40 years. In the UK, the year-on-year increase in prices is…
Philanthropy: The secret to enjoying your giving
Like chess, or golf, or computer games, philanthropy can seem daunting at first but like all slow-burning passions, it’s the layers and the depth of philanthropic giving that make it so rewarding and enjoyable. According to Jane Magor, National Manager, Philanthropy and Non Profit Services at Perpetual Private, these layers are ones that many individuals…
Would Australians buy electric cars?
Only 5,532 of the 101,233 new cars sold in Australia last month were all-electric. While that number is an improvement on previous months, it is tiny compared to the 25% to 85% of new cars sold that are all-electric in European nations such as Germany, the Netherlands, Denmark and Norway. A lot has been written…
Long-term tailwinds in play for renewables
The long-term case for renewables was already well-established before the war in Ukraine began due to the need to decarbonise the economy. The current pressure on Europe to break its dependency on Russian gas has only strengthened the long-term need for green infrastructure. The long-term case for renewables investing has been mounting in recent years…
Cash is king when inflation shifts higher
We continue to position the portfolio defensively with high levels of cash in the face of interest rate turmoil. Value is returning with the recent shifts higher in yields and corporate credit spreads, but we think it’s too early to position the portfolio with more interest rate and credit risk. Risks remain elevated March was…
The yield curve: a crystal ball for the next recession?
Ask an investor what they would most like to know in advance and the timing of the next recession might be high up their list. The correlation between the ups and downs of the stock market and the ebb and flow of the economy is not exact but there is clearly a link. Recessions are…
