Global share markets experienced mostly gains over the past week, although US shares saw some volatility amid concerns about valuations and a potential AI bubble. European markets declined, influenced by political instability in France, while Japanese and Chinese shares advanced. Australian shares dipped slightly, with retail, IT, telco, and property sectors experiencing notable declines.
Bond yields saw minor increases, while gold briefly exceeded $US4000 before settling slightly below. Bitcoin also reached a new high but ended the week lower. Despite a recent peace deal, oil prices edged up. Metal and iron ore prices continued their upward trend. The Australian dollar weakened against a stronger US dollar.
RBA Governor Bullock reiterated the Reserve Bank of Australia’s data-dependent approach to interest rates. Despite recent hotter-than-expected economic data, AMP maintains its expectation of two further 0.25% rate cuts in November and February. However, they acknowledge a high risk that rates may be at or near their bottom. AMP is an Australian financial services company that provides superannuation and investment products. It also offers financial advice services to individuals and businesses.
AMP notes several risks that could trigger a market correction, including slowing US jobs data, potential US tariffs, public debt concerns, geopolitical tensions, and uncertainty surrounding future interest rate cuts. Despite these risks, their 6-12 month outlook for shares remains positive, driven by expectations of market-friendly policies and further rate cuts by central banks.
