In this Strategy Outlook, we present the major investment themes and views we see playing out next year and beyond.
As expected, the Reserve Bank of Australia lifted the Cash Rate by 25bps to a 10-year high of 3.1% on Tuesday – the third consecutive quarter-point increase after it unexpectedly slowed the pace of hikes in October.…
Commodity currencies have been rather resilient, despite the broad rise in the dollar this year. In our view, we are about to experience a big rotation in commodity currency market performance at the crosses, from NZD, to CAD and…
Australian material stocks have recently been outperforming the overall Aussie equity market, climbing 20% since late-September. Unsurprisingly, these gains coincide with the latest rally in industrial metal prices, which has…
Australia’s retail sales figures were a big miss. They contracted in October for the first time this year, falling by 0.2% m/m and disappointing expectations they would continue to grow close to September’s 0.6% m/m…
The Reserve Bank of Australia is among the global central banks that are leading the dovish shift in the monetary tightening cycle. Specifically, elevated private sector debt raises the economy’s sensitivity to higher…
The messages from the deteriorating fundamental backdrop (tight monetary policy, slowing global growth) and improved credit valuation (elevated 12-month breakeven spreads) are giving conflicting signals on corporate bond strategy. We…
Central banker messaging after the latest rate hike announcements in the US, UK and Australia indicates a shift in focus from the pace of hikes to how high rates must rise to slow growth and bring down inflation. This represents the…
As anticipated, the Reserve Bank of Australia lifted the Cash Rate by 25bps to 2.85% on Tuesday. This marks the second consecutive quarter-point increase, after it unexpectedly slowed the pace of hikes last month. The decision…