Fabulous February – Equities accelerate globally
February proved to be a great month for equities. Many records were broken and markets are posting their best monthly performance in years. Here's a roundup of some of the major markets around the world:
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Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 03 Mar 15
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Venezuela tension heats up
Duration 03:16
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Aussie dollar surprises market
Duration 03:10
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Markets climb as investors watch US healt...
Duration 02:31
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February proved to be a great month for equities. Many records were broken and markets are posting their best monthly performance in years. Here's a roundup of some of the major markets around the world:
Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
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Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
- In the US, both the S&P500 and the Dow Jones Industrial indices continued to make record highs.
- The NASDAQ has broken the 5000 level. This however is shy of the record close of 5,048 and intraday high of 5,132 in March 2000.
- In the UK, the FTSE100 made a new record after it broke through the high it made more than 15 years ago.
- The N225 in Japan is trading at levels not seen in 15 years.
- Here in Australia, equities had a very strong month although the market is yet to break through 2007 highs.
Attention this week will focus on the US February employment report. We expect to see further evidence of diminishing slack in the labour market.Non-farm payrolls are likely to have increased by around 230,000 in February. We also suspect the unemployment rate will have fallen to 5.6%, from 5.7%. This is good news for the US. Federal Reserve which considers 5.3% to 5.5% as being "full employment".
China reduced its benchmark interest rate by 25 basis points over the weekend as falling CPI and PPI numbers had the effect of increasing the real interest rate.
The cut is unlikely to have a big impact on Chinese growth. This is because much of the money being lent is being used to roll over the enormous load of existing debt. The main affect will be to lower financing costs for bank borrowers as a large proportion of loans are still priced off the benchmarks.
In Australia, at the RBA's March meeting interest rates were kept on hold, confusing the markets. The reasons for the last cut made no sense and the reason for keeping them on hold this time makes no sense.
We expect the next round of GDP data will show growth rebounded last quarter driven by exports and consumption.