Investment markets and key developments over the past week
- Shares were mixed over the last week with Japanese shares up 3.6% on prospects for a delay in the next sales tax hike, Chinese shares gaining 2.5% as the start of the Shanghai-Hong Kong share market link was confirmed, US shares up 0.4%. European shares were unchanged – not helped by renewed worries regarding Ukraine and Australian shares were down 1.7%. Bond yields rose slightly in the US, but fell elsewhere. With the US dollar consolidating after its surge since June, the Australian dollar managed to rise slightly.
- The most significant move over the last week has been the continuing fall in oil prices. They are down around 30% since June and, if sustained, will add about 0.6% to US economic growth over the year ahead, offsetting the negative impact from the rising US dollar. The fall in oil prices is likely to push average Australian petrol prices below A$1.30/litre which would represent a saving to the average family petrol bill since June of A$8 a week.
Please click here to read the full article: Weekly Report ~ 14 November 2014