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DelphiNews June 2017

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

Market Update

Welcome to the June edition of the Market Update.

Markets in May were heavily influenced by political developments in the major economies.

European equities returned 2.6% in May helped by Emmanuel Macron’s convincing win in the French Presidential election.

In the middle of the month equities were sold off on revelations that Donald Trump may have pressured former head of the FBI, James Comey, to drop investigations into Russian interference in the US election.

Chinese activity indicators were softer last month but still remain at relatively high levels.

Australian economic data showed that the economy barely grew in the March quarter due to weather-related factors which impacted on net exports.

Economic Update

In this update, Bob Cunneen, Senior Economist talks to Myooran about key events driving markets during May.

They discuss:

  • Australian shares delivering a disappointing monthly performance

  • US and European share markets making solid gains in May

  • the political risks in Europe, the Middle East and North Korea as key themes driving markets, and

  • President Trump's bold promises of corporate tax cuts and higher infrastructure spending continuing to be supportive of US shares.

Home is where the heart is...

UK-based Intermede’s Mike Gallagher highlights in the article below why fast-growing global companies should help investors shake their ‘home bias'.

More withdrawals from "the Bank of Mum and Dad"

Treasury secretary John Fraser spoke last year of his concerns for retirement savings of parents who help their children into housing by making withdrawals from "the bank of mum and dad".

Fraser is worried that helping children into costly housing, as homebuyers or tenants, may inhibit their own abilities to save for retirement, including through their super. Read more about his thoughts on this "close to home" issue below.

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

 

Regards

Vince Dore CFP
Director