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.