64 Jolimont Street, East Melbourne VIC 3002

Financial Planning News

Market Update - May 2016

 

See below for key points and the report itself.

       

 

Key Points: 

  • The RBA cut the overnight cash rate to 1.75% from 2.00% at the May board meeting but held firm at the June meeting. 
  • In fixed income, the 3 Month Bank Bill Swap Rate fell by -0.10%, while the 10 Year Australian Bond Yield fell by 0.20% in May.
  • Corporate debt spreads, as measured by the iTraxx Australian Index, fell to 126.09 over the month from the previous reading of 131.76.
  • Australian shares rose further over the month, with the All Ordinaries Index and the S&P/ASX 200 Index increasing by 2.48% and 2.41%, respectively. 
  • Domestic listed property followed the broader market gain, returning 2.68% over the month.
  • Regional equity markets ended higher in most regions, with the TOPIX (Japan) Index gaining 2.93% to be the best performer, and the Hang Seng (Hong Kong) Index declining by -1.20% to be the worst performer.
  • Global commodity prices ended the month lower, losing -1.30%, as measured by the US$ CRB Spot Commodity Index. Gold and Iron Ore prices were sharply lower, declining -6.04% and -20.93%, respectively, in US Dollar terms. 
  • The Australian Dollar fell heavily against most currencies in May, falling by -5.40% against the US Dollar, -3.20% against the Euro, -5.57% versus the British Pound and -1.90% against the Japanese Yen.
  • The Australian Trade Weighted Index (TWI) fell by -3.29% over the month, ending April at 61.70.
  • Share market volatility fell both domestically (-1.51%) and in the US (-1.23%).

 

Please click on the following link to gain access to this resource.


Click here to view the 31st May2016 Market Report

 

 Source:       Zenith Investment Partners



W Marshall & Associates 64 Jolimont Street, East Melbourne VIC 3002

Important: This is not advice. Clients should not act solely on the basis of the material contained in this Commentary. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before taking any action. The Commentary is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.