Rebel forces ousted Syrian dictator Bashar Al Assad amid ongoing unrest in the Middle East. Outgoing US President Joe Biden signed legislation to avert a US Government shutdown until mid-March 2025 and the US Federal Reserve cut interest rates by a further 0.25%, taking their target range to 4.25% to 4.50%. Investors were surprised by a shift in the Fed’s forecast for future interest rates which indicated a slower pace of cuts in 2025 due to higher inflation expectations. The RBA held the cash rate steady during the month following a modest September-quarter GDP print and Australian unemployment dipping to 3.90% in November.
The ASX300 Accumulation Index declined (-3.1%) and A-REITs fell (-5.8%). Global share markets declined (-1.9%) and currency-unhedged investors gained 2.6%, aided by a weaker AUD vs the USD and Euro.
The Australian 2-year government bond yield fell by 0.09% to 3.86% and the Australian 10-year government bond yield was little-changed at 4.36%. The US 2-year government bond yield rose 0.09% to 4.24% and the US 10-year government bond yield rose by 0.40% to close at 4.57%.
AUTHOR: Allan Grant
Disclaimer: The above is intended as a general market commentary only and is not intended as, and does not constitute, advice of any kind. No liability is accepted for any action based on the above or for any loss suffered as a result of reliance on the same.
