ANZ Smart Choice Super Investor Update : Member Update Autumn 2014
999 Investment insights Our ANZ Wealth Chief Investment Office team provide expert insights into the market events of the last quarter, as well as the outlook ahead. Global share markets were volatile in the March quarter. Poor economic data out of the US and China in the early part of the year drove markets lower before shares rallied when it became clear the weak US data was mostly due to short-term impacts of extreme weather conditions. Despite the softer economic data, the US Federal Reserve (Fed) continued to trim its asset purchase program down to $55 billion a month. In February the new Fed Chairperson Janet Yellen was sworn in and her initial comments were well received by the market before her March statement was interpreted incorrectly by analysts to imply an earlier and faster interest rate hike. Business surveys in Europe indicate the region’s economy is expanding, though from a weak base. While the pick up in growth is especially evident in Germany, there were some positive signs across most economies. However, unemployment remains high and inflation low at just 0.5%; prompting the European Central Bank to leave open the possibility for it to undertake measures to keep inflation positive. The Chinese economy re-emerged as a source of concern in the March quarter. Industrial production growth slowed while fixed asset investment growth fell to its lowest rate since 2003. While this partly reflects the Lunar New Year holiday, the lack of any material bounce in manufacturing surveys in March indicates a slowing in activity. Positively, the Chinese authorities outlined a small stimulus package to stabilise the economy before the quarter ended. Outside China, there were positive signs of a pick up with production accelerating in South Korea, Taiwan and Singapore. However, the improvement has not been uniform across Asia with production and exports still weak in India and exports falling in the latter half of March in Indonesia. Market Watch video - March quarter Mark Rider, Head of Investment Strategy and Asset Allocation, explains why global financial markets have been so volatile in the March quarter. Also, hear his insights on the Australian dollar.
Member Update Summer 2014
Member Update Winter 2014