Australian and International shares end the year with a roar.
The S&P/ASX 300 Accumulation Index returned 3.1% for the month, the benchmark is up 22.5% for the year to 31 December 2005. The MSCI World Ex Australia (net div in $A unhedged) returned 3.1% in December with the hedged benchmark returning 2.3%. The strong economic environment and leverage to emerging markets buoyed both Australian and international shares.
Property returned an exceptional 5.3% for the month.
The S&P/ASX 300 Property Trust Index returned 5.3% for the month, the benchmark is up 12.7% for the year to 31 December. Australian property trusts continue to expand offshore to seek value.
ECB raises rates for the first time since 2000.
The European Central Bank raised rates during the month, noting that the Euro-region would grow at the fastest pace in two years as companies and consumers increase spending.
Reserve Bank noted that higher oil prices have already been reflected in inflation.
Governor Ian Macfarlane noted mid-month that "virtually all of the rise in oil prices has been reflected in statistics on inflation, and the results have been surprisingly small".
17th-January-2006 |