MONTHLY MARKET REPORT – JANUARY 2017
Posted on 13/02/2017
Monthly Market Report for January 2017. Below are the key points for the month:
General Advice Disclosure:
- The RBA kept the overnight cash rate at 1.50% at the February board meeting. As always, there was no board meeting in January.
- In fixed income, the 3 Month Bank Bill Swap Rate and the 10 Year Australian Bond Rate fell by -0.05% and -0.04%, respectively, in January.
- Spreads on Australian corporate debt continued to fall in January, as indicated by the iTraxx Australian Index declining -9.84 points, to end the month at 93.18.
- Australian shares were roughly flat over the month, with the All Ordinaries Index and the S&P/ASX 200 Index falling -0.77% and -0.79%, respectively. Domestic listed property underperformed the broader share market, falling -4.75% over the month.
- Global equity markets recorded mixed results, with Hong Kong adding 6.18% to be the best performer over the month, as measured by the Hang Seng (Hong Kong) Index. The FTSE 100 (UK) Index fell -0.61% in January to be the worst performing market.
- Gold and oil prices gained 4.67% and 4.38%, respectively, in January. As at end of the month the price of iron ore had risen an impressive 95.09%, continuing its stellar run. Oil prices fell -1.69% in January, and the overall CRB Spot Commodity Index rose 2.22% in US Dollar terms.
- The Australian Dollar rose against most major currencies in January, 4.57% against the US Dollar,
2.95% against the Euro, 2.65% against the British Pound, and 1.73% against the Japanese Yen.
- The Australian Trade Weighted Index (TWI) gained 2.66% over the month, ending January at 65.60.
- Share market volatility rose domestically (1.03%) and fell in the US (-2.05%).
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