Market Update March 2011
This issue of Market Update focuses on the devastating earthquake which struck Japan on 11 March. Given the size and extent of the damage, the true impact on sharemarkets and economies around the world is still unknown. Despite this tragedy, global economies appear to be improving, most notably in the US where manufacturing indicators and household consumption have improved and unemployment appears to have dropped. Inflationary pressures in Europe are also an indication of a strengthening economy as is the possibility of interest rates being lifted. In Australia, the soft start to 2011 continues with mining the strongest performer and the dollar edging above the USD Japan’s earthquake aside, it’s been a reasonably good start to the year on the data front, however, it’s important to keep in mind that we can probably expect to see more volatility as the true extent of the disaster on global markets is still to be revealed. If you’d like to discuss anything in this report please give my office a call on 8274 3744, Steve.