Market Returns
- Australian Equities: The S&P/ASX 200 TR Index climbed by 5.03%, with the S&P/ASX Small Ordinaries TR Index also up by 7.04%.
- Global Equities: Showed a positive trend with the MSCI World NR Index (AUD) up by 4.44% and the S&P 500 PR Index (USD) increasing by 8.92%.
- Property: The S&P/ASX 300 A-REIT TR Index reported a significant gain of 10.93%.
- Fixed Interest: The Bloomberg Ausbond Composite 0+ Yr Index rose by 2.97%, reflecting a cautious market optimism.
- Currencies & Commodities: The Australian dollar appreciated, showing a 2.2% increase in trade-weighted terms.
Australian Equities
November saw a rejuvenation in the Australian equity market, with a noteworthy 5.0% increase in the ASX 200. Sectors like Health Care, Property, and IT led the charge, showcasing resilience amidst rate hike concerns and economic fluctuations.
Global Equities
The global stage was bright in November, with developed markets outshining emerging counterparts. The US marked significant gains, hinting at an end to rate hikes, while European markets flourished on easing inflation data. However, Chinese markets faced downturns, echoing economic contractions.
Property
The property sector stood tall, with the A-REIT Index leaping by 11.0%. Both domestic and global real estate equities saw strong performances, buoyed by a moderating inflation outlook and reinforced investor confidence in the sector.
Fixed Income
The RBA's decision to hike the cash rate to 4.35% set a cautious tone across the fixed income landscape. Yet, bond markets rallied, with yields dipping in response to the broader economic indicators and central bank policies.
Currencies & Commodities
The Australian dollar saw a notable appreciation, particularly against the US dollar, buoyed by a combination of improving market sentiment in Australia and a softening USD on the global front.
Economic Key Points
- Australia: Despite a rate hike to 4.35%, signs of easing inflation and modest GDP growth highlight a nuanced economic landscape.
- Global: The easing of inflation globally suggests a potential shift in central bank policies towards rate reductions.
- US: The Federal Reserve's stance, alongside job additions and consumer sentiment, paint a mixed picture of the economic outlook.
- Eurozone: With inflation rates moderating, the Eurozone's economic condition reflects a cautiously optimistic outlook.
- UK: October's inflation drop signals a potentially stabilizing economic environment amidst ongoing adjustments.
- China: Economic contractions and deflationary pressures continue to challenge China's growth trajectory.
- Japan: Amidst global economic headwinds, Japan faces its own set of challenges, including a modest GDP contraction.
This article contains information first published by Lonsec. Voted Australia’s #1 Research House for 2019.
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