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
The pros and cons of DIY investing
“Social trading” is being flagged as a very real issue now affecting the Australian stock market – especially as low-cost stock trade platforms gain popularity. ...Read more
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
Stock market
Market volatility not a worry for Millennial investors
In spite of COVID-19-related volatility, Australian investors aged between 24 and 39 remain bullish about the current sharemarket. ...Read more
Stock market
Why investors will miss their mark for the next 5 years
Australian investors are urged to rethink their investment targets, with the COVID-19 recovery likely to have an impact on returns, new research has found. ...Read more
Stock market
Standing strong in a crisis, ethical investments are here to stay
Ethical investments are more than just a short-term fad, an investment manager has advised. ...Read more
Stock market
Sovereign wealth fund goes negative for the first time since the GFC
The Future Fund has posted a rare negative return for 2020 and warned that a “challenging and volatile” economic climate could hurt previously strong gains moving forward. ...Read more
Stock market
Don’t worry about dividends: Stocks still going strong
Dividends are still up for grabs for active investors willing to wade through the major headlines and an abundance of market negativity, an investment expert has flagged. ...Read more
Stock market
The pros and cons of DIY investing
“Social trading” is being flagged as a very real issue now affecting the Australian stock market – especially as low-cost stock trade platforms gain popularity. ...Read more
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
Stock market
Market volatility not a worry for Millennial investors
In spite of COVID-19-related volatility, Australian investors aged between 24 and 39 remain bullish about the current sharemarket. ...Read more
Stock market
Why investors will miss their mark for the next 5 years
Australian investors are urged to rethink their investment targets, with the COVID-19 recovery likely to have an impact on returns, new research has found. ...Read more
Stock market
Standing strong in a crisis, ethical investments are here to stay
Ethical investments are more than just a short-term fad, an investment manager has advised. ...Read more
Stock market
Sovereign wealth fund goes negative for the first time since the GFC
The Future Fund has posted a rare negative return for 2020 and warned that a “challenging and volatile” economic climate could hurt previously strong gains moving forward. ...Read more
Stock market
Don’t worry about dividends: Stocks still going strong
Dividends are still up for grabs for active investors willing to wade through the major headlines and an abundance of market negativity, an investment expert has flagged. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
