I’m pleased to provide the April 2013 edition of Market Update.
Last month global markets were dominated by the issues surrounding US spending cuts and the continued Eurozone debt woes. As can be expected the current turmoil in Cyprus, despite its relative insignificant contribution to GDP, is likely to impact to some degree the wider Eurozone recovery moving forward.
In the US, the Central Bank is continuing with its current monetary stimulus and this strategy remains at the forefront of the Federal Reserve’s agenda. The Fed’s agenda also focuses on improving the wealth effect on consumers by underpinning the housing recovery, working on job creation and lowering unemployment.
In domestic news, the RBA kept the official cash rate at 3% at the April meeting after strong employment data was recorded in February. The RBA will continue to monitor employment trends particularly closely in the coming months, and will make further decisions regarding an appropriate interest rate level leading into the second half of 2013.
As markets continue to remain uncertain in the short term, please remember to remain focused on your long-term goals.
If you’d like to discuss anything in this report please give my office a call.