Market Wrap – May 2018 - Newcastle Financial Planning Group
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Market Wrap – May 2018

Market Wrap – May 2018

Post Series: Market Wrap

A Brighter Month For Shares

  • Global shares advanced 2% in hedged terms in April as US quarterly company earnings, rising commodity prices and robust Chinese economic growth data more than offset investor concerns about geo-political risks and trade war fears.
  • US shares were up marginally in April, its first positive month since January. European shares outperformed, the UK FTSE 100 rose 6.4% and the French CAC 40 was up 6.8%.
  • US GDP rose at an annualised 2.3%, supported by gross private investment, inventories, government spending and less drag from net exports. This contrasted with GDP releases from the UK and France which, while likely weather affected, confirmed the loss of momentum in the first quarter.
  • While historic peacemaking efforts between North and South Korea made headlines, continuing troubles in Syria and the instability in the region saw oil prices rise. The higher oil prices boosted inflation expectations and saw the yield on the US 10-year treasury break through 3% for the first time in four years.
  • Despite a slowing in Australian annual employment growth from record highs, Australian shares rallied in the month and the AUD was weaker.

Major Asset Class Performance (%)


Please note: Past performance is not indicative of future performance.

Currency


Please note: Past performance is not indicative of future performance.

Disclaimer: This information is current as at 4 May 2018 but is subject to change. This information is issued by OnePath Funds Management Limited (OFM) ABN 21 003 002 800 AFSL 238342. OFM is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 but is not a bank. The information is general in nature and does not take into account a potential investor’s personal needs, objectives and financial circumstances. This information is not to be construed as investment or financial product advice, and should not be relied upon as a substitute for professional advice. Before acting on this information, potential investors should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Potential investors should read the relevant Product Disclosure Statement (PDS) available at onepath.com.au and consider whether the particular product is right for them. Although all the information in this document is obtained in good faith from sources believed to be reliable no representation of warranty, express or implied is made as to its accuracy or completeness. Whilst care has been taken in preparing this material, ANZ and its related entities do not warrant or represent that the information, opinions or conclusions contained in this document (“information”) are accurate. To the extent permitted by law, ANZ 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 subscribed capital is not guaranteed. RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429.

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