•  Australia’s S&P/ASX 200 Index finished June materially lower ending -8.8%. All sectors with the exception of Consumer Staples were negative.
• The US Federal Reserve has raised rates by 0.75%, in response to the high inflation rate. 
• Annual inflation rose to 8.8% in the Euro zone, strengthening the case for the ECB to raise interest rates.  
• The RBA raised the cash rate to 0.85% in June, in an attempt to bring inflation under control.

 
Global economies
New variants have caused global Covid-19 cases to rise, surpassing 548.5 million cases and 12 billion vaccine doses administered as at the end of June. Inflation, especially rising energy and food costs, continues to be a global issue spiking in most economies.

US
Fed Chair Jerome Powell reiterated the commitment to do-whatever-it-takes to control high inflation.

Europe
In the UK, the Bank of England increased the cash rate by 25bps to 1.25% in June.

China
CPI came in at -0.2% in May, with the annual rate flat at 2.1%, below the expected 2.3%.  

Asia Region
As widely expected, the Bank of Japan left its key short-term interest rate unchanged at -0.1% and that for 10-year bond yields around 0% during its June meeting.

Australia
The RBA raised rates by 50 bps in June, bringing the cash rate to 0.85%. The unemployment rate remained at 3.9% in May, above expectations of 3.8%.

DISCLAIMER

The information in this Market Update is current as at 17/7/2022 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.

•  Australia’s S&P/ASX 200 Index finished the month of May -2.6%, with all sectors of the market lower except Materials.
• The US Federal Reserve has raised rates by 0.5%, the most aggressive interest rate increase in over 20 years, in response to the high inflation rate. 
• Annual inflation rose to 8.1% in the Euro zone, largely driven by energy prices. 
• The RBA raised the cash rate to 0.35% in May, the first increase in 10 years, amid rising inflation.

Global economies
Continuing lockdowns in China, notably in Shanghai, have had an ongoing impact on global supply chains, especially in the electronics sector. The war in Ukraine continues to put pressure on global food supplies.

US
The US Federal Reserve has raised rates by 0.5%, also flagging that more 50 bps increases are likely to be implemented in the coming months.

Europe
In the UK, GDP decreased by 0.1% in March, with the last 3 months coming in at +0.8%..

China
CPI came in at 0.4% in April, with the annual rate increasing to 2.1%, above the expected 1.9% increase.  

Asia Region
The Bank of Japan said the country’s economy is projected to grow more slowly, amid headwinds from a resurgence in COVID-19 cases and a rise in commodity prices due to the situation in Ukraine.

Australia
GDP grew by 0.8% in 1Q22, above the 0.7% expected, with year over year GDP falling from 4.2% to 3.3%.

DISCLAIMER
The information in this Market Update is current as at 15/6/2022 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.

•  Australia’s S&P/ASX 200 Index finished lower over the month masking positive performance from seven out of 11 underlying sectors. Information Technology (-10.4%), Materials (-4.3%) and Consumer Discretionary (-3.2%) were the major laggards.
• Inflation remains a concern in the USA, with the 8.5% annual rate being the highest level since December 1981.
• The Russian war on Ukraine continues to put pressure on energy prices and prompting the IMF to downgrade global annual growth projections to 3.6%.
• Inflation rose to 5.1% in Australia – a 20 year high – leading to calls for the RBA to raise the base rate from 0.1% at its May meeting. 

Global economies
Global Covid-19 cases continue to rise with numbers surpassing 513 million cases and 11.5 billion vaccine doses administered as at the end of April.

US
Inflation jumped 1.2% in March, in line with forecasts, pushing the annual rate to 8.5%, the highest since December 1981. This has put pressure on the Federal Reserve to increase interest rates at their next meeting.

Europe
The European Central Bank held interest rates at 0.0% during the April meeting, consistent with the prior March quarter, with President Lagarde noting the timeline for potential interest rate increases has not been determined.

China
GDP grew 1.3% in the March quarter, with the yearly growth rate coming in at 4.8%, ahead of the 4.4% expected and the 4.0% recorded in December.  

Asia Region
The Bank of Japan left its key short-term interest rate unchanged at -0.1% during its April meeting. It also revised its inflation forecast up to 1.9% but believes inflation is largely driven by one time causes.

Australia
March’s unemployment was unchanged at 4.0%. slightly above the anticipated 3.9%. Retail sales increased by 1.6% in March.

The information in this Market Update is current as at 13/5/2022 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.

•  Australia’s S&P/ASX 200 Index had a strong month returning 6.9% led by Information Technology (+13.2%), Energy (+9.8%), and Materials (+8.9%). All sectors finished up during the month.
• The Federal Reserve raised interest rates to 0.50% as they look to tackle the highest level of inflation in 40 years.
• The war in Ukraine continued to aggravate stock market volatility and put pressure on energy supply and prices.
• The RBA kept the cash rate on hold at 0.1% and reiterated unpredictability over the pick-up in Australia’s inflation on the back of recent developments in global energy markets and ongoing supply-side problems.

Global economies
Global Covid-19 cases continue to rise with numbers surpassing 485 million cases and 11 billion vaccine doses administered as at the end of March. A new Omicron sub variant emerged, causing a spike in infections across Europe and China.

US
The Federal Reserve lifted interest rates from 0.25% to 0.50% in March -the first rise in three years – as they look to tackle the highest level of inflation in years and leveraging off a strong US economy.

Europe
As widely expected, the European Central Bank kept interest rates at 0%, however it surprisingly sped up its asset purchase schedule for the upcoming months.

China
China’s CPI grew by 0.6% over February, 30bps higher than expectations whilst the annual rate was flat at 0.9%, as anticipated.  

Asia Region
The Bank of Japan left its key short-term interest rate unchanged at -0.1% and the 10-year bond yields around 0% during its March meeting.

Australia
Measures aimed at reducing strain on household budgets were announced in the Federal Budget, including a temporary cut in fuel excise and targeted rebates.

• The 50% reduction in the minimum drawdown for super pensions will be extended to 2022/23.
• This year’s Low and Middle Income Tax Offset will increase by $420.
• Age pensioners and other social security recipients, Commonwealth Seniors Health Card and Pensioner Concession Card Holders will receive a $250 payment in April 2022.
• The fuel excise will drop by 22.1 cents a litre for 6 months.

 Note: These measures are proposals only and may or may not become law.

• Australia’s S&P/ASX 200 Index returned 2.1% with Energy (+8.6%), Consumer Staples (+5.6%), and Materials (+5.2%) posting solid returns. Information Technology continued to be challenged with a decline of -6.6%.
• Nonfarm payrolls rose 678,000 in February, well above of expectations of a 400,000 increase.
• The war in Ukraine exacerbated stock market volatility and caused Brent crude to pass the $100 per barrel barrier.
• The RBA kept the cash rate on hold at 0.1% and expects inflation to rise on the back of higher petrol and energy costs.

Global economies

Global Covid-19 cases continue to rise with numbers surpassing 437 million cases and 10.5billion vaccine doses administered as at the end of February. Russia’s invasion of Ukraine has caused volatility in global stock markets.

US

Annual inflation accelerated to 7.5% in January, the highest since February of 1982 and well above market forecasts of 7.3%, as soaring energy costs, labour shortages, and supply disruptions coupled with strong demand weigh.

Europe

Interest rates across the Euro region were held at 0.0%. The inflation rate increased 0.3% in January, with energy contributing the bulk of this increase.

China

China’s annual inflation rate fell to 0.9% in January from 1.5% a month earlier and compared with market forecasts of 1%.  

Asia Region

No meeting by the Bank of Japan was scheduled for February so rates remain unchanged at -0.10%.

Australia

The RBA left the cash rate unchanged at 0.1% as widely expected. The board stated that the global economy was continuing to recover from the pandemic, but it expects inflation to rise on the back of higher petrol prices and energy costs.

DISCLAIMER

The information in this Market Update is current as at 9/3/2022 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.

•  Australia’s S&P/ASX 200 Index declined by -6.4% with significant sell-offs experienced in Information Technology (-18.4%), Health Care (-12.1%) and Consumer Staples (-9.6%).
• Nonfarm payrolls rose 467,000 in January, well above of expectations of a 150,000 increase.
• Eurozone annual inflation rose to 5.3% amid continuing high energy prices.
• The RBA kept the cash rate on hold at 0.1% and will cease its $4-billion-a-week bond-buying stimulus program in early February.

Global economies
Global Covid-19 cases continue to rise with numbers surpassing 380 million cases and ten billion vaccine doses administered as at the end of January.

US
The Federal Reserve kept its policy rate unchanged at 0.00-0.25% at its January meeting and announced that with inflation well above 2% and a strong labour market, it expects it will soon be appropriate to raise the target range for the federal funds rate.

Europe
The European Central Bank made no change to interest rates at its January meeting, holding them at 0.0%, and pledged to reduce its bond purchases this year despite the record rise in inflation.

China
GDP rose 1.6% in Q4 2021, above the expected 1.1% rise, with the yearly rate also coming in ahead of expectations at 4.0%.

Asia Region
The Bank of Japan left interest rates unchanged at -0.10% during its January meeting.

Australia
The RBA left the cash rate unchanged at 0.1%, as widely expected, and decided to stop the A$275 billion bond-buying program with the final purchases to take place on February 10.

DISCLAIMER
The information in this Market Update is current as at 14/2/2022 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.

• Australia’s S&P/ASX 200 Index rose 2.75% in December with strong returns across Utilities, Materials, Property, and Financials ex Property.
• Nonfarm payrolls rose 199,000 in December, well below of expectations of a 400,000 increase.
• European annual inflation rose to 5.2% amid increasing energy costs.
• The RBA kept the cash rate on hold at 0.1% and will continue its $4-billion-a-week bond-buying stimulus program until at least mid-February.

Global economies

Global Covid-19 cases continue to rise with numbers surpassing 282 million cases and 8.7 billion vaccine doses administered as at the end of December. The global surge in Omicron variant cases caused lockdowns and restrictions in many European countries, even in the wake of widespread booster immunisation programs.

US

The Federal Reserve kept its policy rate unchanged at 0.00-0.25%, as expected and announced at its December meeting it would end its pandemic-era bond purchases in March, paving the way for three interest rate hikes by the end of 2022.

Europe

The European Central Bank made no change to interest rates at its December meeting, holding them at 0.0%.

China

The European Central Bank made no change to interest rates at its December meeting, holding them at 0.0%.

Asia Region

The Bank of Japan left interest rates unchanged at -0.10% during its December meeting.

Australia

The RBA left the cash rate unchanged at 0.1%, as widely expected, and will continue its $4-billion-a-week bond-buying stimulus program until at least mid-February.

DISCLAIMER

Please use the following disclaimer when using any part of this publication. 

The information in this Market Update is current as at 17/1/2022 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.

• Australia’s S&P/ASX 200 Index declined by -0.5% in November masking some disparate returns across sectors.
• Nonfarm payrolls rose 210,000 in November, well below of expectations of a 550,000 increase.
• Eurozone annual inflation rose to 4.9%, the highest rate since July 1991.
• The RBA kept the cash rate on hold at 0.1% as expected, with indications that inflation had picked up but remains low in underlying terms.

Global economies
Global Covid-19 cases continue to rise with numbers surpassing 262 million cases and 7.7 billion vaccine doses administered as at the end of November. COVAX missed its developing world vaccination target for November and called on wealthy nations to do more to get vaccines where needed most, especially in the wake of the new Omicron variant. Inflation has climbed across the globe, with the US recording its highest level in 30 years.

US
The Federal Reserve kept its policy rate unchanged at 0.00-0.25%, as expected. Personal consumption increased 1.7% annually, ahead of the expected 1.6%.

Europe
The European Central Bank (ECB) kept interest rates on hold at 0.0%, as expected, and indicated the very generous monetary policy support to the economy would need to be reassessed at some point in the future in view of the improved inflation outlook.

China
China’s inflation rate increased 0.7% month-on-month in October, in line with market expectations, with the annual rate increasing sharply to 1.5%, above the expected 1.4%.

Asia Region
Japan’s unemployment rate fell 10bps to 2.7% in October, slightly ahead of expectations of 2.8%.

Australia
The RBA left the cash rate unchanged at 0.1%, as widely expected, with indications that inflation had picked up but remains low in underlying terms.

DISCLAIMER
The information in this Market Update is current as at 15/12/2021 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.

• Nonfarm payrolls rose 531,000 in September, well above of expectations of a 450,000 increase.
• Eurozone GDP expanded 2.2% in Q3, slightly ahead of expectations of 2.1%, with the annual rate sitting at 3.7%.
• The RBA kept the cash rate on hold at 0.1% as expected; consumer sentiment fell as worries over the longer-term outlook for the economy overshadowed relief from the loosening of COVID-19 restrictions.

 Global economies
Global Covid-19 cases continue to rise with numbers surpassing 246 million cases and 6.9 billion vaccine doses administered as at the end of October. Ongoing Covid cases, production bottlenecks, soaring commodity prices and power supply issues continue to pose a risk to already strained global supply chains.

US
The Federal Reserve kept its policy rate unchanged at 0.00-0.25%, whilst deciding to begin reducing the monthly pace of asset purchases by the end of the month.
 
Europe
The ECB kept interest rates on hold at 0.0%, as expected. GDP expanded 2.2% in Q3, slightly ahead of expectations of 2.1%, while the yearly rate now sits at 3.7%.

China
China’s inflation rate stayed the same month-on-month in September, below expectations of 0.3%.

Asia Region
The Bank of Japan left its key short-term interest rate unchanged at -0.1% and the target for the 10-year government bond yield at around 0.0%, as widely expected.

Australia
The RBA left the cash rate unchanged at 0.1%, as widely expected, while continuing with plans to trim the purchase of government bonds to $4 billion a week until at least mid-February 2022.


DISCLAIMER
The information in this Market Update is current as at 15/11/2021 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.