Key Points:

1. The RBA opted to leave the overnight cash rate unchanged at 3.00% at the February board meeting and similarly elected to keep the rate at 3.00% in March.
2. Three month bank bill future prices gained 4 basis points (bp) in February, indicating improved market sentiment while also signalling a lower probability of an interest rate cut in the next three months.
3. The ten year bond rate corrected in February following a dramatic rise in January to end the month 10 bp lower.
4. Australian shares continued to post strong returns, with the All Ordinaries Price Index gaining 4.48% and the S&P/ASX 200 Price Index gaining 4.62%.
5. Australian listed property gained 2.56% as measured by the ASX 300 A-REITS Price Index.
6. International Shares posted modest gains in February, with most major regional markets reporting gains. In particular, the TOPIX (Japan) rallied 3.77% while the Dow Jones Industrials (US) and the FTSE 100 (UK) posted moderate gains of 1.40% and 1.34% respectively.
7. The Hang Seng Price Index (Hong Kong) performed poorly in absolute and relative terms, declining by 2.99% during February.
8. Commodities prices fell in February. Oil was the weakest performer with the price of West Texas Crude Oil ($US) declining by 5.58%. The USD Gold price also retreated, ending the month 5.05% lower.
9. The Australian Dollar saw varied results in February, declining against the US Dollar (down 1.90%) and the Japanese Yen (down 0.78%) while posting gains against the British Pound (2.56% higher) and the Euro (1.86% higher).
10. Volatility increased by 1.23%, as measured by the VIX Index, however the Index is still less volatile than at this time last year.

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• Click here for a Market Report – 28th February 2013

 Source:       Zenith Investment Partners