Invest
Australia’s recession-free run could be coming to an end
Saxo Bank has released its global outlook for Q3, suggesting a slashing of rates as governments worldwide try to stimulate the economy.

Australia’s recession-free run could be coming to an end
Saxo Bank has released its global outlook for Q3, suggesting a slashing of rates as governments worldwide try to stimulate the economy.

The report released by the bank suggests that global economic slowdown, the trade war and Brexit are having an impact on growth.
Chief economist and CIO of Saxo Bank Steen Jakobsen believes that due to this slowdown, politicians worldwide would look to add a short-term boost through monetary policy.
“Central banks’ response to the looming economic slowdown and trade war has been panic cutting interest rates and signalling new extremes of easing, while politicians are warming to the idea of modern monetary theory,” said Mr Jakobsen.
Domestic outlook
With global economic outlook weakening and the Australian economy losing momentum, Saxo Bank predicts further cuts to the Australian market.
Eleanor Creagh, market strategist for Saxo Bank, believes Australia’s run of nearly three decades of economic growth will soon come to an end.
“Australia’s near 30-year recession-free run, the envy of central bankers around the globe, is now at risk as economic malaise grips. The wonder down under that escaped zero interest-rate policy, negative interest-rate policy and quantitative easing has not managed to vanquish the business cycle and will not be so lucky this time around,” said Ms Creagh.
Commodities are set to benefit
In positive news for the Australian economy, a short-term commodity boom could be on the horizon, according to Saxo Bank.
The global slowdown is likely to result in an increase in government’s spending money, which has the potential to drive a boom in commodities.
Gold in particular will likely increase as the weaker US dollar could give gold and commodities the overall boost it’s been lacking, said Saxo Bank.
Boost to bonds
European bonds have rallied powerfully since the end of 2018, with issuers such as Greece benefiting the most. Saxo Bank predicted a strengthening throughout the European summer as governments issue more bonds.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

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

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
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

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