November Market Update 2021

The Pulse
 Australia’s S&P/ASX 200 Index had a moderate decline of -0.10% in October. 

  • 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.

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.
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’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.

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.

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.

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