DelphiNews March 2018

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

Market Update

Welcome to the March edition of the Market Update.

Perhaps paradoxically, February’s market turmoil was a response to signs that the global economy is reducing slack.

US employment and wage indicators led investors to take a more “inflationist” view, with a rise in yields pre-empting future Fed tightening.

Price pressures in Europe also appear to be picking up, with PMIs pointing to stronger economic growth in Q1 2018.

The Chinese economy appears to be stuck in neutral, with mixed PMIs and inflation falling to 1.5% year-on-year.

The Australian economy continues to improve, but wages growth remains subdued and the RBA is unlikely to raise rates in the near term.

Economic Update

Take a visual tour of markets during February. There were sharp falls in global shares, strong rises in US government bond yields, and the Australian dollar declined.

Which key events have been driving markets? Watch the video of MLC’s Senior Economist Bob Cunneen in discussion with Head of Investment Communications Jason Hazell.

Trump's trade war shows the deficit in goods and goodwill

US President Donald Trump’s announcement of a 25% tariff on steel and 10% on aluminium imports has sent a shockwave through global trade. Bob Cunneen, Senior Economist and Portfolio Specialist comments on the Chart of the Week.

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.

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