Market Insights: UK likely to dodge the Brexit bullet, for now at least

The impending United Kingdom referendum on European Union membership remains a major “event risk” for global markets over the coming month.  That said, polling suggests the chances of the UK leaving the Union after this vote are diminishing, which means there might be scope for at least a short-term “relief rally” for the British Pound. More broadly, however, it’s worth noting that UK equities have underperformed their continental counterparts in recent years, and lingering concerns over the UK’s commitment to the European Union suggests investors might consider European investments that exclude the United Kingdom.

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Market Insights: Why the RBA cut and could cut again

The recently released minutes to the Reserve Bank of Australia’s May policy meeting – at which it cut official interest rates – highlighted the fact that it was near-term downside risks to inflation, not economic growth, that encouraged the Bank to act.  Given the challenge of pushing underlying inflation back up, it seems likely that the RBA will cut interest rates at least once more this year. Ultimately, however, this is a very pro-growth development which could usher in a return to above-trend economic growth and better stock market performance.

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Market Insights: Banking on Financials in a Low Interest Rate Environment

The Reserve Bank of Australia’s decision to cut the official cash rate last week – together with growing expectations it will cut interest rates further – has thrown the spotlight back onto yield plays in the Australian equity market.  Although financials have faced bearish investor sentiment in recent months, their still attractive yields and relatively cheap valuations suggest they remain an investment worthy of serious consideration.

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BetaShares Australian ETF Review – April 2016

The Australian exchange traded fund industry hit a new record of $21.9 billion in total funds under management (FUM) during April. Reflective of both the recovery in the local equity market and the changes to interest rates, broad Australian equities and fixed income products received the highest level of inflows.

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Global Market Outlook May 2016: Commodities Storm Back

Risk markets extended their gains in April, though hedged global equities posted a more modest 0.8% gain after a very strong 5.3% rebound in March.  The star performer last month, however, was commodities which rose 6.6% with broad based strength across oil, grains and gold.

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