DelphiNews October 2016

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

Market Update

Highlights for September:

•  In September equity and bond markets were dominated by investor concerns around the timing of the next US interest rate hike.

•  Crude oil prices rose 8% on talks from producer countries of possible cuts to oil production levels.

•  Chinese economic data continued to show that economic growth is being supported by strong housing construction and government stimulus measures.

•  The US economy is growing at a modest rate but the rate of employment growth has tapered off in recent months as the economy approaches full employment.

•  The Eurozone economy is performing in line with expectations but more recently investors have been concerned with the health of some of the banks, particularly in Italy.

•  Australia’s economy has been benefiting from strong housing construction and growth in the services sector but consumers have become more cautious in recent months.

Economic Update

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

He discusses:

• how European shares edged lower due to the concerns over the health of Europe’s banking system

• the timing for higher US interest rates being a key issue driving global markets

• the mild gain achieved by Australian shares, and

• how the Australian Resources sector was supported by higher coal and oil prices.

Financial advice boosts confidence in retirement

Seventy-seven percent of Australian pre-retirees who haven’t enlisted the help of financial professionals don’t feel prepared for retirement. This concerning statistic was revealed in MLC’s Australia today report. Further details are contained in the article below. Please pass this on to any family, friends or colleagues who may be interested.

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

Regards

Vince Dore CFP
Director