Market Wrap – March 2019 - Newcastle Financial Planning Group
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Market Wrap – March 2019

Market Wrap – March 2019

Post Series: Market Wrap

A mixed bag

  • After January’s bounce, February was a little quieter but still ended in positive territory, with global shares up by 3.4% and 5.6% in hedged and unhedged terms respectively.
  • US shares similarly were up 3%, a more modest rise than January’s 7.9% rally, which was driven by a better-than-expected US reporting season.
  • The full effects of the long US government shutdown are yet to be seen, but US GDP growth slowed significantly in the December 2018 quarter, to 2.6% following 3.4% growth in the September quarter.
  • Australian shares performed well – twice as well as US shares, in fact – up 6% for the month.
  • The RBA is currently forecasting growth of around 3% for the Australian economy in 2019, supported by increased business investment and public infrastructure spending.
  • In the eurozone, hopes for avoiding widespread recession seem to be pinned on a strong Asian recovery, while the Brexit issue continues to cloud the UK economy.
  • China-US trade relations have thawed somewhat, with Trump announcing that tariff increases on Chinese goods would be delayed, raising hopes that a trade agreement will be reached soon.
  • The Australian dollar slipped slightly against all the major currencies, down to US71c and €0.62 at the end of the month.

Major asset class performance (%)

Asset classes

Source: JP Morgan & ANZ Wealth, 28 February 2019.
Indices: Australian shares: S&P/ASX 300 Accumulation | Global shares (hedged/unhedged): MSCI World ex Australia Net | Global emerging markets: MSCI Emerging Markets Net in AUD (unhedged) | Global small companies (unhedged): MSCI World ex Aust Small Cap | Global listed property: FTSE EPRA/NAREIT Developed Rental Index ex Australia (hedged) | Cash: Bloomberg Bank Bill | Australian fixed income: Bloomberg AusBond Composite 0+ Yr Index | International fixed income: Barclays Global Aggregate Bond Index (hedged).
Please note: Past performance is not indicative of future performance.

Currency

Currency

Source: Bloomberg & ANZ Wealth, 28 February 2019. All foreign exchange rates are rounded to two decimal places where appropriate.
Please note: Past performance is not indicative of future performance.

Disclaimer: This information is current as at 28 February 2019 but is subject to change. This information has been prepared on behalf of RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429 (“RI Advice”), a wholly owned subsidiary of IOOF Ltd ABN 21 087 649 625 AFS Licence No. 230522. Whilst care has been taken in preparing this information, RI Advice and its related entities do not warrant or represent that the information is accurate. To the extent permitted by law, RI Advice and its related entities do not accept any liability from the use of the information. Past performance is not indicative of future performance. The value of investments may rise or fall and the repayment of capital is not guaranteed. The information is not to be construed as investment or financial product advice and should not be relied upon as a substitute for professional advice. The information provided is of a general nature and has been prepared without taking into account a potential investor’s objectives, financial situation or needs. Before acting on this information, potential investors should consider whether the information is appropriate for them, having regard to their objectives, financial situation and needs. DJIB Investments Pty Ltd T/A Newcastle Financial Planning Group is a Corporate Authorised Representatives of RI Advice Group Pty Ltd. RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429 is a wholly owned subsidiary of IOOF Ltd ABN 21 087 649 625 AFS Licence No. 230522.

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