I’m pleased to enclose the August 2014 edition of the Market Update. Click here for the full report.
Global economic growth has proven resilient despite the geopolitical tensions in the Ukraine and Middle East. The US economy has rebounded strongly in Q2, continuing its upward trend after a weak start to the year. Outlook for the Chinese economy remains positive following a slow but steady recovery in Q2.
There has been an improvement in the Eurozone’s manufacturing data generally in July; however it remains impacted by the crisis in the Middle East and Ukraine. The Eurozone Q2 economic growth was flat but in line with expectations. The UK economy continues its slow recovery.
In Asia, data for Q2 indicates a stabilising Chinese economy in line with Government forecasts for 2014. On the other hand, the Q2 Japanese economy was impacted, as expected, by the increased sales tax in April, although this is anticipated to be more of a one-off event.
On the home front, economic growth remains in line with forecasted targets. The RBA has once again left the cash rate unchanged at 2.5% in August, with interest rates anticipated to remain at this level well into 2015.
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