Invest
Markets bouncing back for Christmas, investors told
Investors should retain their holdings in European and Asian equities, with equity markets expected to rally in these regions despite recent terrorism-related events, according to one fund manager.
Markets bouncing back for Christmas, investors told
Investors should retain their holdings in European and Asian equities, with equity markets expected to rally in these regions despite recent terrorism-related events, according to one fund manager.
Instreet Investment managing director George Lucas said the traditional Christmas rally in equities has begun with a reversal of the sell-off from two weeks ago, despite the horrific attacks that took place in Paris and subsequent terror-related activity.
“Equity investors appear relaxed and also increasingly comfortable with the prospect of a US rate rise, which is looking more and more likely to be announced by the US Federal Reserve at its mid-December meeting,” said Mr Lucas.
Recent surveys show global fund managers prefer Asia and Europe over US equities, he said, while expectations are increasing that the European Central Bank (ECB) will step in soon with more economic stimulus measures by loosening monetary policy further.
Mario Draghi, ECB president, made his most forceful remarks yet about the prospect for additional stimulus, saying the bank "will do what we must to raise inflation as quickly as possible".
“Discussion around aggressive ECB action has helped drive European stocks to three-month highs and is one of the reasons fund managers remain overweight to Europe,” Mr Lucas said.
In Asia, the focus is on China as it steps towards liberalising its economy and evolving monetary policy tools, he said.
“It’s one thing for China to liberalise its capital markets but it also needs to transmit monetary policy signals through its increasingly diverse financial system. The current benchmark lending and deposit rates do not fulfil this role,” he said.
The People’s Bank of China is expected to keep market interest rates low for some time until there is firm evidence of an economic turnaround, Mr Lucas said.
Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more
Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more
Stock market
Facebook debuts new name
Zuck gets meta. ...Read more
Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more
Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more
Stock market
Facebook debuts new name
Zuck gets meta. ...Read more
Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
