Daily FNArena News - FYI

Weekly musings by your editor. Let’s suppose high oil prices are here to say. Does anyone still see any benefits in portfolio diversification?

The previously bullish picture for the Aussie dollar is becoming more clouded with recent weakness in commodity prices, ANZ suggesting any correction would likely drag the Aussie dollar down as well.

Danske Bank sees the threat of inflation as the biggest driver of forex markets in coming months as only a few central banks are suitably positioned to fight the threat with higher rates.

As the “will they won’t they” debate on Australian interest rates twists and turns, this week sees the latest employment data.

State Street’s graphic interpretation of institutional investor sentiment suggests we are likely to see a further deterioration in risk appetite first, before a recovery will follow.

Weekly musings by your editor. What is going to trigger a bounce in the Australian share market?

The Fed is banking on US inflation eventually falling due to economic weakness, but Morgan Stanley warns it may take longer than hoped. There are also implications for Australia.

March quarter GDP data was weak and the restrictive level of interest rates at present makes a recession likely in New Zealand.

The world is preparing for an European rate hike as the US Treasury secretary makes a mercy dash to Europe.

GaveKal’s risk appetite indicator has turned down once more, indicating liquidity is being withdrawn by investors. This should encourage downward pressure on inflation by itself.