Global

For those planning to invest in offshore assets, the decision whether to hedge currency exposure is an important one as movements in the Australian dollar can either erode or add value to an investment.

An explosive report by activist short seller Hindenburg Research led Adani Group to shelve a planned US$2.5 billion equity sale and wiped $120 billion from the multinational conglomerate’s market value. While activist short reports should be taken with a grain of salt, market observers said, some of Hindenburg’s key claims are likely valid – including that Adani was vastly overpriced.

Markets have moved sharply to reprice Chinese assets upwards after the world’s second-largest economy signalled its reopening. However, some doubt the sustainability of the current bull market, saying key ingredients for a lasting recovery are missing.

With economists expecting the Australian dollar to strengthen this year, investors are looking to currency-hedged funds to remove FX exposure that threatens to erode the value of their international investments.

After equity markets recalibrated during a volatile 2022, the market is anticipating a tale of two halves in 2023. Investors should look for opportunities in established and high-quality global stocks, with a focus on corporate earnings.

While the market is broadly underweight China, South African-based Foord Asset Management is confident that President Xi Jinping’s economic plan for the country will bear fruit over time.

The Chinese government’s announcement of less onerous isolation guidelines prompted markets to rally in anticipating of a move away from zero-COVID policies. While significant short-term challenges remain, market sources say renewed growth may be in sight, representing future opportunity.

The continuation of an economic world built on linear consumption, LGT Crestone’s Rachel Etherington says, will further burgeoning social and economic issues that threaten to destabilize the global system.

Elon Musk’s last-minute decision to revive his original $44 billion buyout of Twitter Inc. sees its shares up 23 per cent but Tesla shares down 16 per cent last week.

The Australian Securities Exchange (ASX) recently launched the S&P/ASX Agribusiness Index (XAG) to offer investors direct exposure to domestic public agribusinesses.

Australia has thus far remained relatively immune from the inflation challenge occurring around the world, but the 5.1 per cent CPI result in May was met with significant concern from the central bank. While the majority was explicable, being rolling impacts on energy, education and property costs from the pandemic, the Reserve Bank has responded in the same way as most of its global counterparts.

AXA has launched two new green strategies as part of its plan to expand investment portfolios and rollout into Australian markets. The AXA IM Global Green Bond Fund and the AXA IM Clean Economy Equity Fund will join AXA IM’s flagship Sustainable Equity Fund, which was launched back in 2014.