- The RBA kept the overnight cash rate at 2.00% at both the February and March meetings.
- In fixed income, the 3 Month Bank Bill Swap Rate rose by 0.07% while the 10 Year Australian Bond yield fell by -0.24% in February.
- Corporate debt spreads, as measured by the iTraxx Australian Index, rose to 155.77 in February from the previous reading of 139.54.
- Domestic shares continued to decline, with the All Ordinaries Index and the S&P/ASX 200 Index falling by -2.15% and -2.49%, respectively. Listed property outperformed, gaining 1.96% for the month.
- While global equities were down in most regions, Japan was the worst performer, declining by -9.37%, as measured by the TOPIX Japan Index.
- The UK outperformed on a relative basis, despite a flat return of 0.22%, as measured by the FTSE 100 Index. The US added 0.30% by its price weighted Dow Jones Industrials Index and fell by -0.41% by its market value weighted S&P 500 Index.
- Global commodity prices continued to recover at modest rate in February, gaining 0.14%, as measured by the US$ CRB Spot Commodity Index. Gold and Iron Ore prices had the largest gains, rising 10.36% and 15.42%, respectively in US Dollar terms.
- Despite a small increase over the month, the oil price remained at historical low levels at around US$33.75.
- The Australian Dollar appreciated versus most currencies in February, rising 0.56% against the US Dollar, 0.52% against the Euro and 4.13% versus the British Pound. The AUD depreciated against the Japanese Yen, by -5.22% for the month.
- The Australian Trade Weighted Index (TWI) rose by 0.81% over the month, ending February at 62.00.
- Share market volatility rose both domestically (+1.50%) and in the US (+0.35%).
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Source: Zenith Investment Partners
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