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Australian banks out of favour – globally!

by Wealth Know How in Commentary & Opinion

Australia’s stronger GDP number released last week has reduced expectations that interest rates will be cut again by the RBA.
This did not help the yield-sensitive banking sector, which was subsequently sold off. In fact, banks have been a major cause of the 3% decline in the Australian market during the past two weeks. 
Much of the problem is coming from overseas investors exiting Australian banks in favour of European and US bank.
The US banking sector is becoming more attractive as US long bond yields rise. Rising yields support overseas bank margins making them more attractive than Australian banks.

Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.

Published on 10 Jun 15

  • Australia’s stronger GDP number released last week has reduced expectations that interest rates will be cut again by the RBA.
    This did not help the yield-sensitive banking sector, which was subsequently sold off. In fact, banks have been a major cause of the 3% decline in the Australian market during the past two weeks. 
    Much of the problem is coming from overseas investors exiting Australian banks in favour of European and US bank.
    The US banking sector is becoming more attractive as US long bond yields rise. Rising yields support overseas bank margins making them more attractive than Australian banks.

    Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.

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