DelphiNews November 2018

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

Market Update

US economic growth moderated in the September quarter but is underpinned by strong consumer spending growth.

The IMF recently downgraded its forecast for global economic growth, partly reflecting the US-China trade war.

In Australia, business conditions remain relatively robust while labour market conditions continue to show signs of underlying strength.

Chinese GDP grew by 6.5% year-on-year in the September quarter, below the expected 6.6% and down from the June quarter’s growth of 6.7%.

Incoming European data was weaker than expected but consistent with broad-based growth and growing inflation expectations.

Economic Update

Which key events have been driving markets? Watch this video of Senior Economist Bob Cunneen in discussion with Portfolio Specialist, Sinead Rafferty.

They discuss: 

• volatility in share markets in October and the falls in shares globally,

• what’s been happening in markets in Australia, and

• the US mid-term elections and how the outcome might impact markets.

What was behind October's sell-off and what does it mean for the markets?

There are always multiple reasons for volatile markets. This time was no different. One factor that’s concerned investors for some time is that markets will suffer as central banks look to normalise monetary policy by reducing the volume of cash they’re injecting into financial markets. We’re seeing that in the US and it’s following through in the UK and European markets. Read the article below for more details.

Chart of the week: Wall Street confronts the challenges of the Fed and rising wages

Regards

Vince Dore CFP
Director