Invest
Predictions and what to watch for the week ahead
Lowering interest rates, a recovering housing market and foreign tensions will dominate markets this week for Australian investors.
Predictions and what to watch for the week ahead
Lowering interest rates, a recovering housing market and foreign tensions will dominate markets this week for Australian investors.
Australian markets
Official cash rate to fall
Domestically, many economists are predicting the official cash rate will be reduced to 1.25 per cent after the Reserve Bank meets tomorrow.
Fund manager Wilson Asset Management believes there is a 95.1 per cent chance of a rate cut tomorrow.
Chief economist for AMP Capital Shane Oliver said slow wage growth, soft credit growth and falling building approvals will likely lead to a rate cut from the RBA.
Further, the latest data from AMP suggests that rates will continue to be cut falling to 0.5 per cent by mid next year.
Housing markets
AMP is not predicting the quick bounceback in the housing markets, despite rates continuing to fall. In saying that, Mr Oliver predicted a softer landing for the housing markets under the Coalition compared to the Labor Party.
Australian shares
Share markets are likely to see a further pull back in the short term due to uncertainty about trade and weak economic data, according to Mr Oliver.
Overseas markets
The S&P 500 Index fell to a 12-week low due to further tensions between the two economic powerhouses, the United States of America and China. US shares lost 2.6 per cent last week.
China accused the US of “economic terrorism, economic hegemony and economic chauvinism”, with the US in no hurry to end the trade war despite the continued inversion of the US treasury bond yield curve, which is traditionally a sign of an upcoming recession.
Mr Oliver believes the United States is moving its focus away from China and towards Mexico as the Trump puts a 5 per cent tariff on Mexico, which will rise to 25 per cent unless it stops illegal immigration.
The losses were felt globally as the Eurozone fell by 2 per cent and Japanese shares falling by 2.4 per cent.
Chinese shares rallied due to the prospect of new government initiatives aimed at stimulating the economy, rising by 1 per cent.
RELATED ARTICLES
About the author
About the author
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more
Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more
Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more
Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more
Stock market
China's travel and spending surpass pre-pandemic levels, sparking optimism on stock markets
The recent report indicates that Chinese consumers have been travelling and spending more than they did in the same period of 2019, marking a positive turnaround for the Chinese economy. Read more
Stock market
US inflation data sends shockwaves through financial markets
Yesterday, a new set of inflation data from the United States sent tremors through the financial markets, as it came in stronger than anticipated. Read more
Stock market
State Street boosts global ETF operations with enhanced API technology
State Street Corporation has recently announced a significant upgrade to its Fund Connect ETF portal by enhancing the Application Programming Interface (API) capabilities, extending its services to ...Read more
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more
Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more
Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more
Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more
Stock market
China's travel and spending surpass pre-pandemic levels, sparking optimism on stock markets
The recent report indicates that Chinese consumers have been travelling and spending more than they did in the same period of 2019, marking a positive turnaround for the Chinese economy. Read more
Stock market
US inflation data sends shockwaves through financial markets
Yesterday, a new set of inflation data from the United States sent tremors through the financial markets, as it came in stronger than anticipated. Read more
Stock market
State Street boosts global ETF operations with enhanced API technology
State Street Corporation has recently announced a significant upgrade to its Fund Connect ETF portal by enhancing the Application Programming Interface (API) capabilities, extending its services to ...Read more
