November Market Update 2015

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

Global equity markets staged a sharp recovery through October

China cut interest rates for the sixth time in 12 months

US economic data remains positive

US Federal Reserve provides clarity on interest rate increases

The ECB considering further quantitative easing

Australian business credit growth shows positive recovery

RBA maintains the cash rate at 2.0% at its November meeting and remains on an accommodative policy

 

Global economies

Following the August and September global equity market correction, a sharp recovery has been experienced in October.

 

US

In the US, economic data remains resilient with the economy growing at 1.5% (seasonally adjusted) in Quarter 3, 2015.  US corporate earnings growth remains steady at 0.7% and job creation is at its strongest since July.

 

Europe

The October composite PMI came in at 53.6 in September, down from 54.3 in August. Although the rate of growth has eased to a four month low, the Eurozone continues to have solid gains in output and new orders and growth continues to support job creation.

 

China

The China economy has experienced stabilisation over recent months. Manufacturing PMI remained at 49.8 in October, the same as September. The impact of infrastructure investment is expected to continue to be a stabiliser on the China economy over coming months.

Key announcements were centred on a further reduction in interest rates and the removal of the one child policy that was established in 1980.

 

Asia Region

In Japan, manufacturing activity in October expanded at the fastest pace in 12 months, whilst the World Bank has forecast that India would be the world’s fastest growing economy and is relatively well positioned to weather the global volatility.

 

Australia

Australia’s CPI rose 0.5% in the September quarter with the most significant price rises in international travel and accommodation, fresh fruit and property rates and charges.

The RBA has once again kept the cash rate on hold at 2% at its November meeting.

 

The information contained in this Market Update is current as at 6/11/2015 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]