market Archives - Jennings Financial Services

‘Wall of Worry’

Shares Climb a 'Wall of Worry' - but is it sustainable? by Dr Shane Oliver - Head of Investment Strategy and Economics and Chief Economist, AMP Capital After a roughly 35% plunge from their February high point to their lows around 23 March on fears regarding of global recession on the back of the coronavirus shutdowns, share markets have since rebounded sharply, led by US shares. The rally has pushed the Australian ASX 200 back through 6000 for the first time since March. A common concern is that the rebound in share markets is “too optimistic” and “irrational” – how can share markets rebound so rapidly when economic conditions are so weak, coronavirus uncertainty remains high, the US is seeing civil unrest and US/China tensions are rising? I must admit that I have also been surprised by the speed of the rebound and think maybe the markets are ahead of themselves. But I have seen this happen before and [...]

By Bruce Jennings|2020-06-16T10:28:36+10:00June 16th, 2020|Market News|0 Comments

The case for Calm with COVID-19

https://www.ampcapital.com/au/en/insights-hub/Videos/2020/march/the-case-for-calm-with-covid19?csid=1229034487 Please click on the link to watch the Webinar from Dr Shane Oliver - Head of investment strategy & Economics & Chief Economist at AMP Capital. This isn’t the first human health emergency we’ve seen, and it won’t be the last. Shane Oliver shares his views and projections on the COVID-19 outbreak, drawing on tried-and-tested lessons for managing and protecting investments during a crisis. This is a plain English webinar, that is extremely informative about the current market conditions and what you can expect going forward. If you have any concerns or questions please contact Bruce

By Bruce Jennings|2020-03-18T09:54:18+11:00March 17th, 2020|Market News, Tips and Other News|0 Comments

Market Fall On Oil Price

What has caused the Market Fall on Oil Price & Coronavirus Shocks? What happened? Global share markets have fallen in recent days driven by a collapsed oil deal and coronavirus impacts. The Australian share market fell 19.6% from its peak on 20 February 2020 to 9 March. This means the gains of 2019 have been lost with the index back at Dec-18 levels. Why have share markets fallen this much? A case of two shocks Coronavirus fears for global economic growth Share markets have fallen following growing concerns over a global Covid-19 (a.k.a. coronavirus outbreak). This virus is related to the SARS outbreak that affected Asia, notably China in 2003. It has proven to be difficult to control and sparked outbreaks outside of China, across much of the world with Italy, Iran and South Korea the most notable cases. As the outbreaks outside of China escalated, investors retreated from shares and fled to safe assets such as bonds as [...]

By Bruce Jennings|2020-03-17T13:44:37+11:00March 17th, 2020|Market News, Tips and Other News|0 Comments

Market Fall on Coronavirus Fears

Recent market falls Share markets fell last week with the Australian market experiencing one of its worst weeks since August 2011 (when people thought the EU would break up). Negative returns in any given period can happen in the share market with this week standing out for its severity. However, we also see historically shares have lost value in approximately 22 weeks out every 52 weeks since 1980. It is not a rare thing to see in the share market. Shares lost money because a rise in Covid-19 (a.k.a. coronavirus) cases outside of China saw investors sell out of shares and look to safer assets such as bonds or gold. This is because efforts to combat the virus will likely see travel, trade and business activity either slow or shut down temporarily. That would see weaker demand for goods and services, so business profits and wages are likelier to struggle in the short term. Major movers in Global Markets [...]

By Bruce Jennings|2020-03-04T13:11:39+11:00March 4th, 2020|Community Activity, Market News|0 Comments

International Markets Roundup

February 5 2020 - International Market Roundup The Nasdaq hit a record high on Tuesday and the S&P 500 posted its biggest one-day gain in about six months as fears of a heavy economic impact from the coronavirus outbreak waned after China's central bank intervened. Asia Chinese stocks ended higher on Tuesday as the central bank vowed to stabilise the market, regaining some ground from the coronavirus-led rout that erased almost $400 billion in market value from the Shanghai benchmark in the previous session. The Shanghai Composite index closed up 1.3 per cent at 2783.29 the biggest daily gain since 13 December, 2019. The blue-chip CSI300 index jumped 2.6 per cent, clocking its biggest daily gain since 1 July 2019. CSI300's sub-index for the financial sector gained 2 per cent, the consumer staples sector jumped 2.9 per cent, the real estate index were up 2.2 per cent and the healthcare sub-index climbed 3 per cent. Hong Kong stocks climbed [...]

By Bruce Jennings|2020-02-06T10:51:47+11:00February 6th, 2020|Market News|0 Comments

Fall in house prices is ‘quite a bit larger’ than expected says ANZ

ANZ Bank has warned the pace of decline in Australia's house prices is "quite a bit larger" than expected, and likely to last longer than it previously forecast. With national auction clearance rates at a five-year low, ANZ senior economist Daniel Gradwell predicted in a research note published on Wednesday that further weakness was in store for the housing market, before it would start stabilising later this year. Mr Gradwell pointed to recent figures showing that the rate of price decline had accelerated in Sydney. The weakness was also affecting Melbourne amid a slump in national auction clearance rates and a tightening in credit availability. ANZ is now revising these forecasts. Mr Gradwell said the bank had previously expected the market would have "stabilised" by now, based on higher auction clearance rates at the start of this year. It had expected prices would finish 2018 slightly higher in annual terms. ANZ is now revising these forecasts The national auction [...]

By Bruce Jennings|2019-03-12T11:25:38+11:00June 8th, 2018|Market News|0 Comments