Weekly Market Recap
Week in review
- Australia trade surplus hits record $10.3bn
- U.S. unemployment rate surges to 14.7%
- Global PMI for services plunges
- Australia labour market report
- Westpac consumer confidence
- China retail sales
Thought of the week
For the first time ever, markets started to price in a chance that the cash rate in the U.S. would fall below zero. Something that is highly unlikely to occur given the push back from the U.S. Fed on whether the use of negative rates is beneficial. Technical factors were the likely culprit as investors repositioned for increasing issuance of short dated bonds to fund government spending. The next challenge is what the market and the Fed will do when the U.S. Treasury starts to issue longer dated government bonds to fund a ballooning debt level, and a debt-GDP-ratio that is expected to be higher than during WWII. If yields are to stay low, then buyers need to be found, and that means more purchases by the Fed unless other large holders of Treasuries can soak up all the new bonds.
U.S. federal net debt (accumulated deficits)
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.