Welcome to the August edition of the Market Update.
Following the sell-off in equities after the UK’s Brexit decision, equities staged a strong recovery in July, helped by expectations of more central bank stimulus measures in the major economies.
Crude oil prices fell 14% on renewed concerns about oversupply, whilst China economic data continued to show that the government stimulus measures are supporting the economy.
US economic data was somewhat mixed. June non-farm payrolls figures recovered from the very low reading in May but GDP growth in the second quarter was slower than expected.
Economic data out of Europe has continued to be fairly good with moderate economic growth but recent business and consumer surveys in the UK point to a sharp slowdown in activity in the coming months.
Australia’s economy is in reasonably good shape with consumers and businesses finding conditions reasonably good but weak inflation and wages growth have prompted the RBA to cut interest rates again to 1.50% in early August.
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