Bassanese Bites Archives | BetaShares

Eye of the storm

Global Markets
Global markets are still trying their best to “look through” the horrible economic data we’re now going through as a consequence of the COVID-19 lock downs.  Last week, another 6 million were added to US jobless claims and 700,000 Americans lost their jobs in March.  Yet a Trump tweet suggesting major oil producers (apart from the US!) might agree to cut production was enough to lift oil prices and even US equities for a time.

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Head Fake?

Global Markets
The key question folks: have we seen the low or was last week a bear market rally?  Despite horrible US economic data and an acceleration in their  COVID-19 cases, the US S&P 500 saw fit to stage it’s strongest three-day rally since 1931 – after dropping 34% from its peak. 

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Lockdown

Global Markets
The combination of rising COVID-19 cases and restrictive government policy responses in the United States were the main global market focus last week, and which understandably pushed equity markets lower.  California and New York are now in effective lock down, meaning citizens are ordered to stay in their homes unless  seeking food or medical attention.

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Feeling sick

Global Markets
Last week was one to tell your grandchildren about. And for the younger people around the market, you’ve now been blooded with an example of just how volatile and cruel the equity market can be.  Each generation gets its own meltdown it seems and and now it’s the millennials turn. 

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1918 again?

Global Markets
The stand-alone highlight this past week has been global fear around the escalation of coronavirus cases outside of China.  The good news is that while containment (appears) to have been achieved in China, the wave of infections is still rolling out elsewhere.
How bad is it? Unlike the SARS outbreak of 2003,

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RBA cut tomorrow

Week in Review
Where to begin?  Clearly fears of the coronavirus took centre stage last week, causing the biggest one week drop on Wall Street since the financial crisis. It’s also the fastest “correction” (i.e 10% decline from previous peak) in history.   Are markets over reacting?  It’s hard to be certain they are,

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Hold your breath

Week in Review
Last week global markets got their first taste of the negative economic impact of the coronavirus – and it was not easily digested.  Although China continues to claim that the rate of new infections has peaked, Apple’s warning of disruptions to both Asian sales and production – and,

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Bubble trouble

Top events of the past week
Global stocks continued to shrug off coronavirus fears last week with the S&P 500 up a lazy 1.6% to reach a new record high.  Reports of a possible peak in the number of new coronavirus cases was the main (positive) market development, notwithstanding a surge in reported cases in China –

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Tough medicine

Global Markets
Last week global markets managed to shrug off coronavirus concerns – helped by continued solid economic data in the United States.  Indeed, there was a better than expected 225k gain in US jobs during January (market expectation 160k) helped by milder than usual winter conditions which usually boosts construction. 

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