– Global economic data through February shows promising signs for positive improvements to global economies. Markets across the board moved higher as consumer and investor sentiment increased.
– In Australia, the RBA held off cutting interest rates and signalled an end to Australian rate cuts. In the share market, the corporate reporting season was mainly positive, with the ASX200 moving 1.6% higher through the month. Consumer staples and Property Trusts were the best performers, with resource stocks being a key detractor following a market correction from the rally in previous months.
– In the US, at the time of writing (17 March) the US Federal Reserve (Fed) raised interest rates by 25 basis points to 1.00% amid uncertainty over the new Trump administration, and overseas development remaining volatile. In the US Sharemarket, improving consumer sentiment moved the S&P500 higher by 3.7% over the month.
– In Europe, inflation increase 2.0% for the year, indicating that the economy is recovering and the fears of deflation have eased. European shares also performed well on the back of the strengthening economies, however Italy, Greece and France struggling compared to other countries.
– In the Australian Bond Market, the stabilisation that occurred through December and January continued in February, with the 10 year bond yield remaining largely unchanged. The unlikeliness of further rate cuts helped this stabilisation, however the increasing Australian Dollar could become an increasing concern. The global bond markets largely followed the Australian bond markets suit, remaining fairly unchanged with only minor movements.
– The Australian Dollar followed on from January and continued to strengthen against most major currencies, largely on the back of the RBA’s hinting that further rate cuts would be unlikely.
– Listed Property rebounded after January’s fall, moving higher 4.2% due to steadying bond yields and a positive reporting season.
– In the commodity markets, iron ore saw a double digit rise to end the month, but other commodities struggled after recent gains. Lead, zinc and copper all moved lower through the month.
Altitude Financial Planning is a Corporate Authorised Representative of Altitude Financial Advisers Pty Ltd
ABN 95 617 419 959
AFSL 496178
The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.
