DelphiNews September 2016

I’m pleased to enclose the latest edition of DelphiNews.

Market Update

Highlights for August:

• Equities traded in a relative tight range in August but finished modestly higher.

• Crude oil prices recovered 7.5% on talks of possible production freezes from OPEC and non-OPEC countries when they meet in late September.

• China economic data was a little softer with declines in industrial production and retail sales growth.

• US economic data was somewhat mixed. The July non-farm payrolls figure was better than expected which lead US Federal Reserve officials to begin talking about further interest rate rises.

• Economic data in Europe was a little softer with the core annual inflation rate slipping from 0.9% to 0.8% in August. 

• Australia’s economy grew at the strongest annual rate in four years with growth of 3.3% year-on-year in the June quarter.  However, household consumption growth was weaker while government spending much stronger than in the prior quarter.

Economic Update

In this update, Bob Cunneen, Senior Economist and Porfolio Specialist, reviews events in markets during August.

He discusses:

• August featuring only mild gains for global shares

• how positive and improved US economic activity has "strengthened" the case for increasing US interest rates

• China's economic activity showing signs of stabilising, and

• Australian shares slipping by 1.6% in August and the softening of the Australian dollar.

Borrowing to Invest - the risks and benefits

When buying a home, most people save a deposit, find a place they think will grow in value, work out if loan repayments and other expenses are affordable, and then borrow the money needed to make the purchase. The article below seeks to establish whether borrowing to invest is a good idea.

Please contact us if you have any questions regarding your financial requirements or this month's articles.

Regards

Vince Dore CFP
Director