Market Update – 3oth September 2015

Key Points: 

• The RBA kept the overnight cash rate at 2.00% at both the September and October meetings. 
• In fixed income, the 3 Month Bank Bill Swap Rate rose by 0.09% while the 10 Year Australian Bond Rate were largely unchanged, finishing the month at 2.64%.
• Australian shares continued to fall, with the All Ordinaries Index and the S&P/ASX 200 Index declining by -3.13% and -3.56%, respectively.
• AREITs outperformed the broader equity market, despite falling -0.32% as measured by the ASX 300 Property Index. Over the past year, AREITs outperformed the All Ordinaries Index by 18.81%.
• International shares were down across the board, with the TOPIX Japan Index being the worst performer, falling by -8.19% over the month.
• The US continued to be the best performing equity market in September, despite falling by -1.47% and -2.64%, as measured by the Dow Jones Industrials and the S&P 500 Index, respectively.
• Commodity prices continued to tumble, with the US$ CRB Spot Commodity Index declining by -0.72% over the month. Oil price was the hardest hit, falling by -8.35% in US Dollar terms. 
• The Australian Dollar continued to depreciate. It fell by -1.94% against the US Dollar,-1.87% against the Euro, -0.22% versus the British Pound and -2.94% against the Japanese Yen. 
• The Australian Trade Weighted Index (TWI) fell from 60.90 to 59.90 points over the month, indicating an increase in Australia’s international competitiveness.
• Share market volatility fell by -3.93%, as measured by the US VIX Volatility Index. The S&P/ASX 200 Volatility Index rose by 0.22% over the month.

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Source:       Zenith Investment Partner