4 June 2014

Weekly Market Update – week ending 30 May 2014

weekly market update

Investment markets and key developments over the past week

Global share markets rose over the past week helped by relief at the conclusion of the European and Ukrainian elections, mostly good economic data and more signs that easing is on the way in Europe. US shares gained 1.2%, Eurozone shares were up 1.5%, Japanese shares rose 1.2% and Chinese shares rose 0.2%. Signs that non-mining and housing investment are starting to offset the slump in mining investment also helped support the Australian share market despite the fall in the iron ore price, albeit the ASX 200 was flat over the week.

Despite the gains in global shares, bond yields fell again as expectations for future interest rate levels are getting revised down. Commodity prices, including the iron ore price, fell but the Australian dollar rose a bit as the latest business investment data saw investment plans for the year ahead revised up. It’s hard to see the rise in the Australian dollar being sustained given the fall in the iron ore price and the risk that Reserve Bank of Australia (RBA) interest rate hikes will be pushed into 2015.

Please click the link here to read more:  Weekly-Report – 30 May 2014

Verante Pty Ltd is a Corporate Authorised Representative of Viridian Select Pty Ltd, ABN 41 621 447 345, AFSL 515762. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information consider its appropriateness, having regard to your objectives, financial situation and needs.

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