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Market Update August 2012

With many major global economies experiencing a slowdown this year, the International Monetary Fund revised the world growth outlook to 3.5% for the year. Growth forecasts for China and the US were also downgraded to 8% and 2% respectively.

The US economy continued to show signs of a slow recovery, while unemployment rates remained static at 8.2%. Quantitative easing (QE) was once again on the agenda; with Fed members keeping a close eye on economic momentum.

Over in Europe, while Spain continued to concern markets, the United Kingdom was also a key focus for investors during the month. The continual decline in GDP saw a further round of QE introduced in the UK
.
On the home front, Australian markets hoped low inflation figures would encourage an interest rate cut. However at the 7 August meeting no rate cuts were announced by the RBA. In other local news, both retail sales and housing data were up for the month
.
As markets continue to remain uncertain in the short term, please remember to remain focused on your long-term goals.

27/08/2012


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Market Update July 2012

We saw uncertainty in world markets once again this month as news swinged between promising and concerning.

Concerning news stemmed from US and China reporting weaker than expected GDP growth and unemployment and in the case of China, the first ever interest rate cut since the Global Financial Crisis.

In contrast, we saw some great efforts made in Europe to ease bank funding pressures and a commitment by European Union leaders to support the economy with a €120 billion growth pact announced. Markets rallied following the announcement.

In Australia, markets remained positive relative to the rest of the world with the Reserve Bank of Australia maintaining the current cash rate, and the Budget Stimulus starting to be passed out across households in May and June. The Australian Dollar (AUD) gained 5.31% against the US Dollar (USD) in June, reflecting RBA’s positive outlook and the expectation of no further interest rate cuts for July.

As markets continue to remain uncertain in the short term, please remember to remain focused on your long-term goals

13/7/2012


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Market Update June 2012

This month’s edition brings mixed reports from the major global economies, with uncertainty in Europe continuing to be the focal point for investors.
The US economy continues to experience a moderate recovery, with improvements in housing, retail and industrial production. However, talks of further quantitative easing also continued amongst Federal Reserve members.
Europe continues to be a key focus for investors, with fears the Greek crisis could spark a contagion for other economies in the region. Most European major indices were down over 7% in May, with London’s FTSE 100 among the heavier falls.
On the home front, interest rates were in the spotlight as global uncertainty and an evident slowdown in China weighed in on the RBA’s rate decision. After a further cut of 0.25%, the official cash rate is now 3.5%.
As markets continue to remain uncertain in the short term, please remember to remain focused on your long-term goals.

19/06/2012


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