March Market Update 2016

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

Global equity markets continued to correct through February but stage an early March recovery

Oil prices staged a strong recovery from mid-February – up 37%

China economic data continued to consolidate and targets 6.5% minimum growth

US economic data continued to improve

Marginally weaker Eurozone economic data heightens the likelihood of further quantitative easing

Australian non mining sector continues a solid recovery – improved Q4 GDP

RBA retains cash rate at 2.0%

 

Global economies

Global equity markets continued the December/January pullback with a further correction in February. However, late February/early March has seen improved global equity markets as oil prices staged a recovery and global corporate credit risk declined across the high yield energy and commodity company bond markets.

 

US

February US economic data indicates that the economy is continuing to expand.

The improved US economic data has been exemplified by the strong February payrolls data and the resilience behind the Institute of Supply Management (ISM) data.

 

Europe

The February manufacturing Purchasing Managers Index (PMI) was a little weaker than January’s data.

The Market manufacturing PMI index was down at 51.2 in February, from 52.3 in January.

 

China

The manufacturing PMI declined to 49.0 in February compared to 49.4 in January. The production index was 50.2 down from 51.4 in January.

 

Asia Region

In Japan, the February Market Nikkei manufacturing PMI came in at 50.1, compared to 50.2 in January.

The Nikkei services PMI was 51.2 compared to 52.4 in February.

 

Australia

The RBA retained the cash rate at 2% at its March meeting. The RBA indicated that it’s seeking to monitor the sustainability of the improvement in the labour market.  The RBA also indicated global volatility will have an ongoing impact on global and domestic demand.

 

 

The information contained in this Market Update is current as at 10/03/2016 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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