Market Update – 31st December 2015

A snapshot of the key points for December 2015

Key Points:

The RBA kept the overnight cash rate at 2.00% at its December meeting.
In fixed income, the 3 Month Bank Bill Swap Rate and the 10 Year Australian Bond Rate rose by 0.05% and 0.01%, respectively, in December.
Corporate debt spreads, as measured by the iTraxx Australian Index, rose to 126.23 in December from the previous reading of 124.75.
Australian shares outperformed their international counterparts, with the All Ordinaries Index and the S&P/ASX 200 Index increasing by 2.42% and 2.50%, respectively.
Domestic listed property followed the broader equity market, gaining 2.41%, as measured by the S&P/ASX 300 A-REIT Index.
International shares posted negative returns in most regions, with the STOXX 50 Europe Index the worst performer, falling by -5.09%.
Commodity prices declined -2.42% in December, as measured by the US$ CRB Spot Commodity Index. Oil continued to suffer, falling by -8.43% over the month, in US dollar terms.
The Australian Dollar rose 1.63% against the US Dollar and 3.03% versus the British Pound; while deprecating -1.59% against the Euro and -0.27% against the Japanese Yen.
The Australian Trade Weighted Index (TWI) rose by 1.46% over the month, ending December at 62.70.
The US VIX Volatility Index rose by 2.08% over the month, while domestic volatility index fell by -1.00%.

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Source: Zenith Investment Partner