Highlights:
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Australia’s S&P/ASX 200 Index returned 2.1% with Energy (+8.6%), Consumer Staples (+5.6%), and Materials (+5.2%) posting solid returns. Information Technology continued to be challenged with a decline of -6.6%.
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Nonfarm payrolls rose 678,000 in February, well above of expectations of a 400,000 increase.
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The war in Ukraine exacerbated stock market volatility and caused Brent crude to pass the $100 per barrel barrier.
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The RBA kept the cash rate on hold at 0.1% and expects inflation to rise on the back of higher petrol and energy costs.
Global economies
Global Covid-19 cases continue to rise with numbers surpassing 437 million cases and 10.5 billion vaccine doses administered as at the end of February. Russia’s invasion of Ukraine has caused volatility in global stock markets.
US
Annual inflation accelerated to 7.5% in January, the highest since February of 1982 and well above market forecasts of 7.3%, as soaring energy costs, labour shortages, and supply disruptions coupled with strong demand weigh.
Europe
Interest rates across the Euro region were held at 0.0%. The inflation rate increased 0.3% in January, with energy contributing the bulk of this increase.
China
China’s annual inflation rate fell to 0.9% in January from 1.5% a month earlier and compared with market forecasts of 1%.
Asia Region
No meeting by the Bank of Japan was scheduled for February so rates remain unchanged at -0.10%.
Australia
The RBA left the cash rate unchanged at 0.1% as widely expected. The board stated that the global economy was continuing to recover from the pandemic, but it expects inflation to rise on the back of higher petrol prices and energy costs.
Read the full March market update report >>
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The information in this Market Update is current as at 9/3/2022 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.