Market Update – November 2014

1. The RBA held the overnight cash rate steady at 2.50% in November.
2. The 3 Month Bank Bill Swap Rate increased by 0.04% over the month, while the 10 Year Australian Bond Yield decreased by -0.19%.
3. The Australian Share Market had a negative month, with the All Ordinaries Price and the S&P/ASX 200 Index decreasing by -3.76% and -3.86% respectively.
4. Australian Listed Properties were largely unchanged in November.
5. Many global equities markets outperformed the Australian market, with the TOPIX (Japan) Index increasing by 5.75% to be the strongest performer.
6. US equities also performed well, with the Dow Jones Industrials Index and the S&P 500 Index increasing by 2.52% and 2.45% respectively.
7. The STOXX 50 (EUR) Index also had a good month, adding 3.10%.
8. Oil prices saw a large drop over the month, with the Texas Crude Oil US$ Index decreasing by -17.87%. The overall US$ CRB Spot Commodity Price Index fell by –0.93% in November.
9. The Australian Dollar depreciated against most major currencies in November. In particular, it fell by -3.57% against the US Dollar, -2.47% versus the Euro and -1.85% against the British Pound.
10. However the Australian Dollar gained 3.51% over the Japanese Yen, signalling a further decline in the Yen.
11. The Australian Trade Weighted Index (TWI) fell by -1.73% in November, indicating a decrease in Australia’s international competitiveness.
12. Corporate debt spreads tightened over the month, falling to 89.73 from 94.00, as measured by the iTraxx Australia Index.
13. US equity market volatility decreased by -0.70% in November, ending the month priced at 13.33%, as measured by the S&P VIX Index.

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 Source:       Zenith Investment Partner