Highlights:
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Australia’s S&P/ASX 200 Index declined by -0.5% in November masking some disparate returns across sectors.
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Nonfarm payrolls rose 210,000 in November, well below of expectations of a 550,000 increase.
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Eurozone annual inflation rose to 4.9%, the highest rate since July 1991.
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The RBA kept the cash rate on hold at 0.1% as expected, with indications that inflation had picked up but remains low in underlying terms.
Global economies
Global Covid-19 cases continue to rise with numbers surpassing 262 million cases and 7.7 billion vaccine doses administered as at the end of November. COVAX missed its developing world vaccination target for November and called on wealthy nations to do more to get vaccines where needed most, especially in the wake of the new Omicron variant. Inflation has climbed across the globe, with the US recording its highest level in 30 years.
US
The Federal Reserve kept its policy rate unchanged at 0.00-0.25%, as expected. Personal consumption increased 1.7% annually, ahead of the expected 1.6%.
Europe
The European Central Bank (ECB) kept interest rates on hold at 0.0%, as expected, and indicated the very generous monetary policy support to the economy would need to be reassessed at some point in the future in view of the improved inflation outlook.
China
China’s inflation rate increased 0.7% month-on-month in October, in line with market expectations, with the annual rate increasing sharply to 1.5%, above the expected 1.4%.
Asia Region
Japan’s unemployment rate fell 10bps to 2.7% in October, slightly ahead of expectations of 2.8%.
Australia
The RBA left the cash rate unchanged at 0.1%, as widely expected, with indications that inflation had picked up but remains low in underlying terms.
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The information in this Market Update is current as at 9/12/2021 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of IOOF Holdings Ltd and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.