" /> April 2020 Insights - Alteris Financial Group

April 2020 Insights

Welcome to our April newsletter which we bring to you at a time of enormous economic uncertainty. At times like these it’s important to have someone to talk to, so we urge you to contact us if you have concerns about your finances.

The health and economic impacts of the coronavirus increased exponentially in March, as did the response of national governments and central banks. As part of a suite of emergency measures, the Reserve Bank of Australia (RBA) cut the official cash rate twice – first to 0.5 per cent and then to 0.25 per cent – as official rates in the US and Europe were cut to near zero. The RBA also began buying government bonds to bring yields down in line with the cash rate, as well as offering a term facility to banks so they can supply credit to small and medium businesses.

It’s too soon to know if these emergency measures will stave off recession (technically two consecutive quarters of negative growth), but Australia was better placed than many countries heading into the crisis. The Australian economy grew 0.5 per cent in the December quarter, up 2.2 per cent over the year, while company profits rose 8.1 per cent in calendar 2019 to record highs.

Global markets remain extremely volatile. Australian shares fell around 17 per cent in March while US shares fell around 15 per cent. Crude oil prices fell more than 56 per cent as a production agreement between OPEC and other oil-producing nations broke down. Australian wholesale petrol prices fell to a 16-year low, while the national average price of unleaded petrol fell to a 13-month low of 127.6c a litre. The Aussie dollar fell about 5 per cent over the month to just below US62c, after briefly dipping below US56c.

More insights

Lessons from 2020 to secure a bright future

Lessons from 2020 to secure a bright future

It was a year most of us would like to forget. And yet, some of the toughest lessons of 2020 had a silver lining. We weathered bushfires, floods, a pandemic that’s not over yet and a recession that is. Through it all we emerged a stronger community. Many of us also...

read more
Soaring to success in 2021

Soaring to success in 2021

The start of a new year is a great time to reassess where you are in life, your career or business - decide what you want to achieve and put some strategies in place to work towards achieving even your most ambitious goals. The start of this new year is a little...

read more
Retrain your staff with the tax man’s help

Retrain your staff with the tax man’s help

For many business owners, fear of incurring a Fringe Benefits Tax (FBT) bill has kept them from retraining and re-skilling their employees to perform different roles or activities within the business. But a new exemption announced by the government as part of last...

read more