Market Update May 2015
I’m pleased to enclose the May edition of the Market Update, see article below for full report.
At home, the Reserve Bank of Australia has cut the cash rate to a record low of 2.0% at its May meeting. The 12 May Federal Budget is expected to confirm the Commonwealth’s fiscal position is under both cyclical and structural pressure.
Severe weather and port strikes impacted the US Gross Domestic Product for Q1 2015, whilst US corporate earnings have remained resilient although impacted by the strength of the US dollar and oil prices.
Global oil prices have recovered, up 25% - suggesting the lows are now in place.
The European Central Bank’s quantitative easing program, whilst still early in its implementation, has shown positive impact on the Eurozone. Whilst China remains on an easing bias with the PMI indicating that more stimulus measures may be required to ensure the economy doesn’t slow from the 7% annual growth rate seen in Q1.
Regards
Sharie
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