Market Update - October 2014
Key Point for October 2014
- The RBA held the overnight cash rate steady at 2.50% for the 14th consecutive month in October.
- The 3 Month Bank Bill Swap Rate increased by 0.04% over the month, while the 10 Year Australian Bond Yield decreased by -0.21%.
- The Australian Share Market recovered well over the month, with the All Ordinaries Price Index and the S&P/ASX 200 Index increasing by 3.93% and 4.42% respectively.
- The Australian Listed Property Sector outperformed the broader equities market, with the ASX 300 Property Index gaining 6.53% for the month.
- In global equities markets, the Hang Seng (Hong Kong) Price Index increased by 4.64% to be the strongest performer. US equities also performed well, with the Dow Jones Industrials Index and the S&P 500 Index increasing by 2.04% and 2.32% respectively. The STOXX 50 (EUR) Price Index was the worst performer in October, falling by -1.83%.
- Gold and Oil prices tumbled further over the month, decreasing by -3.89% and -11.65% respectively. The overall US$ CRB Spot Commodity Price Index fell by -3.06% in October.
- The Australian Dollar recovered in October after a large fall in the previous month. In particular, it appreciated by 0.61% against the US Dollar, 1.41% versus the Euro, 2.30% against the British Pound and 1.35% against the Japanese Yen.
- The Australian Trade Weighted Index (TWI) increased by 0.73% in October, indicating an increase in Australia’s international competitiveness.
- Corporate debt spreads continued to widen over the month, rising from 87.07 to 94.00, as measured by the iTraxx Australia Index.
- US equity market volatility decreased by -2.28% in October, ending the month priced at 14.03%, as measured by the S&P VIX Index.
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Source: Zenith Investment Partner