Market Update - August 2014
Key Point for August 2014.
- The RBA held the overnight cash rate steady at 2.50% for the 12th consecutive Month in August.
- Short term fixed income securities remained steady with the three Month Bank Bill Swap Rate declining by -0.02%, to finish the month priced at 2.58%.
- 10 Year Australian Bond yields finished the month at 3.29%, representing a -0.21% decline for August.
- The Australian Share Market was relatively flat, with the All Ordinaries Price Index marginally gaining by 0.03% and the S&P/ASX 200 Index decreasing by -0.12%. Smaller cap stocks outperformed large and medium sized companies over the month.
- Australian Listed Properties had a positive month, with the S&P/ASX 300 Property Price Index adding 1.66% for the month of August.
- Equity markets in many developed regions recovered well in August, with the S&P 500 (US) Price Index gaining 3.77% to be the best performer.
- The Japanese TOPIX Price Index and the Hang Seng (Hong Kong) Price Index posted negative results over the month, decreasing by -0.89% and -0.06% respectively.
- Gold and Oil prices increased by 0.41% and 0.49% respectively over the month. Commodity prices overall fell by -0.95% in August, as measured by the US$ CRB Spot Commodity Price Index.
- The Australian Dollar appreciated against most currencies in August. In particular, it appreciated by 0.46% against the US Dollar, 2.39% versus the Euro, 2.18% against British Pound and 1.67% against the Japanese Yen.
- The Australian Trade Weighted Index (TWI) decreased by 0.56% in July, indicating an increase in Australia’s international competitiveness.
- The S&P VIX Index decreased by -4.97% over August, finishing the month priced at 11.98%, comparing to 17.01% 12 months ago.
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Source: Zenith Investment Partners