FIG AVENUE INVESTMENTS

Australian economy

Inflation readings for the most recent quarter were still a bit higher than expected, whilst the unemployment rate ticked upwards a fraction. More concerning though might be the continuing decline in exports, which has seen the trade surplus shrink by over 60% in the past year¹. 

International economy

The US Fed has started to signal that the current rate hike cycle has come to its end. Inflation has been sitting just above its target range of 2-3%, however, a stronger than expected GDP report may give some pause for thought. The picture in Europe is not so rosy, with a year of no growth coming at the same time as the unemployment rate has seemingly bottomed¹. 

Investment Markets

November was a solid month for equity markets with most bourses clawing back much of the losses from the previous few months. The US, Europe and Japan led the way, all finishing up over 8% for the month. Aussie equities were a little more subdued, with a November rise of around 4.5%². 

Outlook

Many are expecting a resetting of interest rate policy in 2024 - however, persistent inflation could derail such hopes and could lead to a continuation of equity market struggles. Thus, all eyes will continue to remain fixed on inflation rates.

S&P/ASX200 - 12 months to 30 November 2023