Market Commentary 24th January 2012
Overseas Markets
US stock markets finished mixed amongst concerns over Greece’s debt-restructuring deadlock over debt-swap negotiations with private creditors. All eyes will be on the Federal Reserve on Wednesday as their policy meeting comes to an end, which comes together with pending home sales data. In Europe, the markets traded higher as investors showed healthy demand at a shot-term German auction of short term debt.
Australian Market
The Australian market is set to open higher, as the SPI futures point to gains of 16 points. The AUD continues its strong rally firming above 105 US cents for the first time since October. This is among optimism that Greece will be able to reach a deal with its creditors. In commodities, oil climbed over worries of security of oil shipments from the Persian Gulf. Gold is also higher while copper rose almost 2%. In company news, Newcrest Mining and Aquarius Platinum due to release 2nd quarter reports.
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Term Deposit & At Call Rates for week commencing 23 January 2012
Guarantee On Deposits
The Federal Government has announced that the Government Guarantee Deposit Scheme will be extended permanently. From 1 February 2012, a cap of $250,000 per person per institution will apply. This means that existing term deposits will be covered at the existing level until the earlier of the deposit’s maturity or 31 December 2012. New term deposits in the interim will be automatically converted to the new scheme from 1 February 2012.
At Call Rates
Current At Call Rates for the following two institutions are:
AMP (> $2,000) > 5.10%
Rabo Direct ($0 – $200k) > 5.40%
TD Rates @ 23 January 2012
The Term Deposit rates available to UMA clients are shown on the attached ratesheet provided by FiiG … Click here
Market Commentary 22 December 2011
Markets were mixed last night after the strong gains a session earlier. In the US a lacklustre earnings report from tech giant Oracle subdued sentiment during the trading session. In Europe there was news of a massive liquidity injection by the European Central Bank. It provided banks with a record 489.19 billion euros in order to help the struggling financial system maintain liquidity and avoid a complete credit crunch. Initially markets rallied on the news; however the massive size of the bailout indicated to traders the precariousness of situation of many of the banks. Markets fell in the afternoon.
The local market is looking at a neutral to negative open with the SPI futures down 4 points. Amid the recent talk of sovereign credit downgrades, Moody’s reaffirmed Australia’s top rating last night. Wayne Swan heralded this as a resounding endorsement of Australia’s financials and economic position. In equities news, AJ Lucas and Hill Holdings have their AGMs today.
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Term Deposit Rates for 7 December 2011
The Term Deposit Rates available on the UMA today are Click here
Market Commentary for 6th of December 2011
Last night Standard and Poor’s warned Germany, France, the Netherlands, Austria and Luxembourg that they risk losing their top credit rating within 90 days on the back of the Euro debt crisis. Markets in the US and Europe pulled back on the news of the possible S&P credit downgrade although still finishing generally in the black. In economic news the US service sector continued to grow in November albeit at a reduced rate. The ISM index of service activity slowed to 52 – below October’s 52.9 level. Industries reporting contraction included entertainment, education, finance, insurance and construction. Retail, mining, utilities, real estate, accommodation and health care were sectors reporting increased activity.
Today investors will be watching the RBA rate decision due to take place at 2:30pm AEST. Economists are generally forecasting a further rate cut of 25 bps. In equity news BT Investment Management holds its annual general meeting. Virgin Australia has reported a 5.7% rise in passenger numbers in October on the back of a strong growth in domestic traffic.
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Term Deposit Rates for the 6th December 2011
The Term Deposit rates available today … Click here
WITH less than three weeks to go until Christmas, homeowners today have reason to celebrate early after the Reserve Bank chose to slash interest rates by 25 basis points to 4.25 per cent. The rates illustrated in the attachment are pre this announcement and tomorrows rates will reflect this cut.
With the Reserve Bank not meeting next until February, the move has been welcomed by analysts and economists alike, with markets this morning pricing in a 65 per cent chance of a cut, largely as insurance against the debt crisis engulfing Europe.
Term Deposit Rates for 14 November 2011
The term deposit rates available to e-Clipse UMA clients today … Click here
Market Commentary for 15 November 2011
We say India’s inflation edge closer to double digits in October as measured by the Wholesale Price Index. The annualised inflation level of 9.73% is up on higher food and fuel prices. Analysts had been expecting a drop to 9.6%. The Reserve Bank of India has raised interest rates 10 times since March 2010 in an effort to curb inflation. Japan released GDP data yesterday showing a strong rebound in economic growth following four quarters of negative growth and the tsunami earlier this year. Growth came in at an annualised rate of 6%. In overseas markets we saw falls in Europe and US. Adding to the problems in Europe we saw Spanish borrowing costs rise above 6% as creditors demand an extra risk premium. This could be problematic for Spain and elections are looming around the corner.
In Today’s domestic news the RBA releases the minutes of its November 1 board meeting and interest rate decision. Analysts will be keeping a close eye on this release for indication as to where the RBA sees the Australian economy tracking over the next 12 months. We’ll also see economic data released by the ABS on new motor vehicle sales for October. Strong sales are a sign of healthy consumer sentiment. Today Clean Seas Tuna, Emeco Holdings and Ramsay Health Care hold annual general meetings.
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Term Deposit Rates for 2 November 2011
The term deposit rates available to e-Clipse UMA clients today are … Click here
Protection article in Asset Magazine
The e-Clipse protection solution was discussed in a recent article in Asset Magazine.
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