1. The RBA kept the overnight cash rate steady at 2.50% during the December board meeting.
2. Fixed income securities remained relatively steady in December, with the Three Month Bank Bill Swap Rate gaining 0.04% to end the month priced at 2.58%.
3. 10 Year Bond Rates finished the month priced at 4.24%, up by 0.02% from November.
4. Australian Shares gained slightly during December, as the All Ordinaries Price Index rose by 0.73% and the S&P/ASX 200 Price Index increased by 0.60%.
5. Australian Listed Property had a poor month, dropping by -3.06% in December as measured by the ASX 300 Property Price Index.
6. Many of the major global equities markets posted positive returns in December. Japan was again the strongest performer, rising 3.47% for the month as measured by the Japanese TOPIX Price Index. The Dow Jones Industrials Price Index also performed well, gaining 3.05% for the month.
7. Hong Kong stocks performed poorly compared to their global counterparts, with the Hang Seng Price Index slumping by -2.41% in December.
8. Commodities prices had an overall negative month with the US$ CRB Spot Commodity Index dropping by -1.47%. The price of gold continued to plummet, declining by -3.82% for the month. The US$ Oil Price recovered over December, gaining by 5.86%.
9. Following the previous month’s downtrend, the AUD depreciated against most major currencies in December (falling -1.99% against USD, -3.40% against EUR and -3.17% against GBP). The AUD recorded a 0.68% appreciation against JPY over the month, consistent with the Yen’s general decline against other currencies.
10. US equity market volatility was largely unchanged from the previous month, rising by 0.02% in December to a price level of 13.72, as measured by the S&P VIX Index.

• Click here for a Market Report – 31st December 2013

Source:       Zenith Investment Partners