Australian Economy – A reasonably quiet month on the economic front with no real surprises and the picture of moderating growth becoming more defined. The unemployment rate ticked back up to 5.6% with confidence waning somewhat. On the housing front (a potential major driver for growth), apart from ever-contracting construction sector, the housing market seems to be pushing its way back up slowly.
Global Economy – Soft Chinese data and a very sick Europe provided most with more concerns over the state of the global economy and ongoing sluggish growth. But a consistently improving US and a hopefully bottoming Japan are likely to help confidence in global affairs remain buoyant.
Investment Markets – April saw further strides in most equity markets, except again for China, whose share prices continue to lag the developed world's markets. At home, the S&P/ASX 200 saw another good rise of 4.5% (13% over 12 months), whilst the US, Europe and Hong Kong were all up around 2%-3%. Japanese equities, aided by QE and devaluation, continued to run up sharply, adding another 12% for the month and up 24% over 3 months.
Outlook – Though concerns are high over how far equity prices may go, the overall picture still feels reasonably good for shares as a whole. Volatility increased a little during April, and this may push up higher as central bank policy continues to entice investors out of cash and into growth assets, with price distortions becoming more likely.
S&P/ASX 200 – 12 months to 30 April 2013
Source: Core Equity Services