I’m pleased to enclose the March 2014 edition of Market Update, click here for full report.
The global economies are continuing to show more synchronised growth in February despite weaker manufacturing and export data out of China.
The US is showing positive signs that the economic slowdown from the severe weather conditions is subsiding and that a return to improved growth is on track.
The Eurozone economic data indicates a broader recovery is occurring, albeit significantly below trend growth rates.
China manufacturing and export data in February was weaker than expected but a significant emphasis is placed on the impact from the seasonal Lunar New Year holiday period. China has targeted a 7.5% growth rate in 2014, as the economy continues its rebalancing process.
On the home front, house prices steadied over the past month, with an average price increase of 1.12% in 2014. While the RBA has kept rates on hold in March, the prospect of house prices stabilising, the impact from higher unemployment in the near term, and uncertainties over the sustainability of the non-mining sector growth, gives the RBA the flexibility to lower rates if necessary.
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