Australian Economy – A reasonably quiet month on the economic front. The RBA left interest rates on hold at record lows, but has increased their "jawboning" over reference to the still-too-strong $A. Housing has picked up some of the slack left behind by a tightening mining industry, but not enough to keep the unemployment rate from ticking up.
Global Economy – Robust jobs and GDP figures out of the US have been aided by the continuing growth in manufacturing and retail sales. And both Europe and China are starting to provide more good than bad economic data, keeping alive the hope of an end to the great recession. On the policy front, both China and India confirmed their move towards a more open market economy, whilst an agreement was reached over ending Iranian sanctions and oil embargoes.
Investment Markets – After running hard since the middle of the year, most markets settled down for a flat November. The volatile Japanese market was the best performer with another jump on the back of increased stimulus from Tokyo, with the Australian share market retreating back from multi-year highs.
Outlook – Signs of overheating in equities have been popping up regularly as of late, but with no clear triggers for a correction, the market seems happy to maintain current levels for now. There is still the train wreck that is the US congress, charged with raising the debt ceiling in early 2014, with no certainties that another shutdown, and even a default, won't occur. This, and possible tapering by the Federal Reserve, is likely to provide some short-term headaches for investors.
S&P/ASX 200 – 12 months to 30 November 2013
Source: Core Equity Services