January Market Update 2016

[vc_row][vc_column width=”1/1″][vc_column_text]The Pulse

Global equity markets correct in December – although Australia was a strong performer

Oil prices continue to weaken

China stock market volatility, and weaker economic data, creates deflationary fears

US economic data continues to point to an improved recovery.

US Federal Reserve commenced the process of normalisation of interest rates in December.

Eurozone economic activity continues to improve

Australian non-mining economic sector continues to recover


Global economies

Global equity markets corrected in December although Australia was up strongly and outperformed other markets.  Oil price declines have raised concerns of increasing corporate defaults, impacting global credit markets.

The US economy continues to improve although the manufacturing sector was weaker in December.  Whilst business conditions in the Eurozone and Japan improved.



In the US, although the economic data has been mixed, the overall economy remains in recovery mode. While the manufacturing and services data has been weaker in December, employment growth remains strong.



The December Market Composite PMI index came in at 53.2 compared to 52.8 in November. New orders and new export business all improved.



The significant news has been centered on the sliding share market, the Government interventions to control the falls in the market and the declining value of the Chinese currency.


Asia Region

Japan’s manufacturing activity in December continued the positive trend. New orders increased at a rate matching October’s one year high. This supported further expansions in output, employment and buying activity.



The Reserve Bank of Australia (RBA) will not meet until February and expectations remain that they will retain the current cash rate at 2%. The Australian economy continues to improve across the non-mining sector.


The information contained in this Market Update is current as at 21/01/2016 and is prepared by GWM Adviser Services Limited ABN 96 002 071749 trading as ThreeSixty Research, registered office 105-153 Miller Street North Sydney NSW 2060. This company is a member of the National group of companies.

Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on any advice, consider whether it is appropriate to your objectives, financial situation and needs. 

Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.[/vc_column_text][/vc_column][/vc_row]

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