The InvestSense Podcast

Financial markets last week were driven by growing evidence of a widening economic divide between the United States and Europe.

In brief:
Diverging Economic Trends Between the U.S. and Europe: The U.S. economy remains strong with robust growth in its services sector, while Europe faces challenges, with declining activity in key countries like Germany and France.

Implications for Monetary Policy and Markets: In Europe, weak data has raised the chances of an interest rate cut by the European Central Bank, while in the U.S., strong economic signals are reducing the likelihood of further Fed rate cuts. Upcoming U.S. inflation data will be crucial in shaping these decisions.

Key Risks and Opportunities: U.S. tariffs could worsen Europe’s economic troubles, but they may also push for closer Eurozone cooperation. Meanwhile, U.S. policymakers remain optimistic, keeping an eye on inflation and holiday spending as signals of economic health.

Get access to the charts:www.investsense.com.au/industry-articles/markets-reflect-diverging-economic-paths-for-u-s-and-europe 

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The past week saw markets digest the mixed signals about the implications of Donald Trump's election victory and early policy moves.

In brief 

Equities and Currency Volatility: U.S. equities surged early in the week, driven by sectors like financials and energy, but the rally faded as markets began reevaluating the "Trump trade." Meanwhile, the U.S. dollar hit a two-year high before pulling back slightly.

Earnings Growth Paradox: Companies with strong international exposure, like Alphabet and Nvidia, are leading U.S. earnings growth. However, Trump's "America First" policies could challenge their success if trade restrictions and tariffs are implemented aggressively.

Central Banks on Alert: Inflation risks are causing Central Banks to rethink their policies. The Fed’s December rate cut odds dropped, while the RBA and other global banks are taking a more cautious approach to easing.

Get access to the charts:  www.investsense.com.au/industry-articles/market-whiplash-how-markets-are-reacting-to-trumps-policy-signals 

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Following last week’s special Market Sense Check, where Jonathan Ramsay and Andrew Hunt discussed the potential global economic impact of the U.S. election results, we’re starting to see how markets are reacting as the dust begins to settle.

In Brief:
Election-Fueled Market Movements: Following Trump’s win, markets initially reacted with optimism, sending U.S. equities, the dollar, and Treasury yields sharply higher. However, the “Trump trade” lost momentum as investors reassessed the potential policy impacts.

Global Currency Shifts: The U.S. dollar’s early gains reversed by week’s end, with the Australian dollar emerging as a strong performer, gaining nearly 1.6%. Other currencies, like the Japanese yen and British pound, also strengthened slightly.

Sector and Regional Reactions: While U.S. small-cap stocks outperformed, European equities remained subdued, highlighting regional concerns about potential tariffs.

Central Bank Cuts: The U.S. Federal Reserve and Bank of England both cut rates by 25 basis points last week. While the Fed indicated no immediate plans for further cuts, the Bank of England emphasised that any future adjustments would proceed cautiously.

Get access to the charts: www.investsense.com.au/industry-articles/trump-trade-unwinds-market-reactions-to-the-u-s-election-outcome 

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Markets remained steady this past week as they await the outcome of the U.S. elections.

Topics Covered:

• U.S Market Economic indicators
• Q3 Tech Earnings 
• Asset class movements from the last week 
• Long-term economic and market themes to watch for the next decade

Get access to the charts: www.investsense.com.au/industry-articles/markets-hold-steady-with-eyes-on-the-us-elections-and-economic-updates

Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights

Last week, markets saw a mix of outcomes, with Europe and Japan experiencing declines, while the UK, U.S, and Australia showed resilience.

Topics Covered:

• Australian Market Resilience 
• Early Q3 Reporting Season
• Asset class movements from the last week 
• Long-term economic and market themes to watch for the next decade

Get access to the charts: www.investsense.com.au/industry-articles/markets-mixed-as-australia-shows-resilience-amid-global-slowdown-signals 


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Last week, markets remained resilient despite several events that could have been expected to have a greater impact.


Topics Covered:

• U.S Market Performance
• A solid start to the financial year in Australia 
• Asset class movements from the last week 
• Long-term economic and market themes to watch for the next decade

Get access to the charts:  www.investsense.com.au/industry-articles/markets-steady-amid-geopolitical-tensions-and-inflation-concerns 


Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights

The past week saw global markets adjust expectations for the pace of interest rate cuts from major central banks, especially the Federal Reserve, following a much stronger than anticipated US jobs report on Friday. However, some of this repricing reversed early this week as disappointing fiscal stimulus measures from China and geopolitical tensions weighed on risk sentiment.

Topics Covered:

• The "Superb" US Jobs Report and its implications in market
• China’s Disappointing Stimulus 
• Asset class movements from the last week 
• Long-term economic and market themes to watch for the next decade

Get access to the charts: www.investsense.com.au/industry-articles/strong-u-s-jobs-report-and-chinas-disappointing-stimulus  


Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights 

The final week of September saw markets grappling with geopolitical tensions, surprise elections and ongoing speculation about central bank rate cuts. 

Topics Covered:

• China’s Stimulus Boost
• September’s Market Performance 
• Asset class movements from the last week 
• Long-term economic and market themes to watch for the next decade

Get access to the charts:  www.investsense.com.au/industry-articles/how-elections-central-banks-and-geopolitical-tensions-moved-markets 

Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights

In this week’s market sense check we cover what’s affecting the market in short-term, the mid-term and what may unravel in the long term.

Topics Covered:

• Fed's Larger Rate Cut Sparks Uncertainty
• Global Markets and China’s Stimulus Package
• Australia’s Strong Jobs Report and RBA Stance
• Asset class movements from the last week 
• Long-term economic and market themes to watch for the next decade

Get access to the charts: www.investsense.com.au/industry-articles/markets-brush-off-fed-rate-cut-as-the-outlook-remains-uncertain 


Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights

In this week’s market sense check we cover what’s affecting the market in short-term, the mid-term and what may unravel in the long term.

Topics Covered:

• Fed Rate cut speculation heats up
• Market signals in response 
• The resilience of small companies 

Get access to the charts: www.investsense.com.au/industry-articles/fed-debates-rate-cut-amid-mixed-economic-signals 


Join the InvestSense Community to receive weekly insights from our investment team: https://www.investsense.com.au/investsense-insights