Australian Economy – GDP figures for the last quarter of 2017 showed a slowing economy, with GDP growth coming in less than expected1. Unemployment data out in March supported the case for lacklustre growth with the seasonally-adjusted unemployment rate ticking up marginally to 5.6%.
Global Economy – The U.S. employment situation continued to impress through February, with nonfarm payroll increasing by a massive 313,000 people for the month, a level only reached 5 times in the past decade2. The strong economy has in no doubt benefited the Trump administration, with the U.S. president's approval rating bouncing back to normal levels. Across the Atlantic, most eyes are on the Brexit negotiations, which are at the half-way point of their 2-year lifespan.
Investment Markets – Markets have been stubbornly volatile for 2 months and all major equity markets had another month of negative returns. After bouncing back well from the big sell-offs in February, Aussie shares were among the hardest hit in March; down more than 4%. Nearly all other markets were down by 2% to 3%3.
Outlook – Dark clouds are lingering on the horizon and markets do not like what they see. Most of the ill winds are being blown by a chaotic White House, but with some luck, markets may be able to hold on and ride it out.
S&P/ASX 200 – 12 months to 31 March 2018
Source: Core Equity Services
Footnotes: 1. Australian Bureau of Statistics; 2. US Dept of Labor; 3. Bloomberg data.