DelphiNews February 2017

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

Market Update

In January, global equity markets continued to rise with the US share market making fresh record highs as investors continued to react positively to Donald Trump’s election as 45th President of the United States.

In the United States, the Dow Jones Industrial Average Index closed above 20,000 for the first time.

US manufacturing indicators continued to rise and point to economic expansion.

Chinese December quarter GDP growth was better than expected, rising 6.8% year-on-year.

Australia’s December quarter CPI came in below market expectations, rising 0.5% over the quarter and 1.5% year-on-year, below the Reserve Bank of Australia’s target range of 2-3% per annum.

Economic Update

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

He observes that US shares made record highs in January. The potential for stronger US economic growth and higher corporate profits in 2017 with President Trump’s stimulus program buoyed US shares. Positive economic data also proved supportive. US business and consumer sentiment surveys showed solid gains, there was strong consumer spending results and healthy job gains. Yet inflation pressures are building with wages growth picking up speed.

European and Japanese shares drifted lower. Investors became more cautious given concerns over President Trump’s “America first” rhetoric and the potential negative impact on global trade. Political risk also weighed on European shares given the forthcoming Dutch (March 2017) and French (April-May 2017) elections as well as the German election later this year.

Australian shares fell 0.8% in January. Some of the interest rate sensitive sectors such as Australian Real Estate Investment Trusts (-4.7%) and Consumer Discretionary (-4.3 %) disappointed. Yet the Metals and Mining sector performed strongly with a 6.8% gain given rising iron ore and metal prices. Click on the following link to read the full January Economic Update.

Estate Plan

Having an estate plan is for everyone. It is about being prepared, minimising risk and making sure your loved ones receive the benefit of your estate. The article below provides more information.

Please contact us if you have any questions regarding these articles or to discuss your financial requirements.

Regards

Vince Dore CFP
Director

Vince Dore and Delphi Financial Management Pty. Ltd are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749, trading as Garvan Financial Planning/MLC Financial Planning an Australian Financial Services Licensee, Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia group of companies.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. The material contained in this newsletter is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this email.

Level 7, 60 Carrington Street, Sydney, NSW 2000
1300 167 826

Unsubscribe