Wealth eNews from David Love
Market update as at 31 January 2012
Australian economic indicators released during January were mixed. Our jobless rate was steady at 5.2%. Retail sales rose in December but fell by 9.3% over the full year. Building approvals rose in November but remained 18.9% lower than 12 months ago. Inflation remained well under control.
On 6 December, the Reserve Bank lowered the cash rate by 0.25%. However at the RBA board meeting on 7 February they decided to leave the official rate unchanged at 4.25%.
During the three months ended 31 January 2012 the Australian stock market, as measured by the S&P/ASX300 Accumulation Index, rose by 0.1%. However, over the past year the Australian market has fallen by 6.2%.
Economic indicators released during the quarter in the US were generally improved. Inflation was well under control and the unemployment rate fell to 8.3%, the lowest rate since February 2009. However, offsetting these positives confidence amongst private and business consumers both dropped.
During the January quarter the Australian dollar was unchanged against the US dollar, fell by 2.2% against the Japanese Yen, rose by 2.3% against the UK Pound and rose by 6.8% against the Euro. Over the past year, our dollar has mostly appreciated against the major world currencies - by 6.2% against the US dollar, 8.2% against the UK Pound and 11.6% against the Euro. However, over the full year, our currency fell by 1.1% against the Japanese Yen.
When expressed in Australian dollars the MSCI World Accumulation Index increased by 2.4% over the quarter. However, over the past 12 months the index fell by 8.5%.
Australian listed property trusts, as measured by the S&P/ASX300 A-REIT Index gained 5.4% over the quarter. However, over the past year this index only rose by 1.4%.
Global listed property trusts rose during the quarter by 5.1%, as measured by the UBS Global Investors TR Hedged Index (in $A). Over the year this sector has risen by 6.2%.
As always, please do not hesitate to contact me if you have ay questions or concerns about your particular situation.
David Love is an Authorised Representative of Capstone Financial Planning Pty Ltd
ABN 24 03 733 969, holder of Australian Financial Services Licence No: 223135
The information in this newsletter is of a general nature only. It does not constitute financial or taxation
advice. This information does not take into account your objectives, needs and circumstances.
We recommend you obtain investment and taxation advice specific to your investment objectives, financial situation and particular
needs before making any investment decision or acting on any of the information contained in this document.
