Australia’s October headline CPI came in at 4.9%, below market expectations of 5.2%. Crude oil prices slumped (-5.2%), despite intensive fighting in the Gaza strip between Israeli forces and Hamas and the ongoing risk of spill-over into a broader regional conflict. The RBA increased the cash rate by 0.25% to 4.35% while major global central banks kept interest rates on hold.
Australian shares gained 5.1% in November, led by the Healthcare, Technology and Industrial sectors. A-REITs surged 10.9% for the month. Currency-hedged international equities gained 8.0% and currency-unhedged international equities returned 4.4%, blunted by the Australian dollar which rose against the US dollar, Japanese Yen and the Euro.
The Australian 2-year government bond yield fell by -0.35% to 4.11% p.a. and the Australian 10-year government bond yield tumbled by -0.51% to 4.41% p.a. The US 2-year government bond declined by -0.41% to 4.68% p.a. and the US 10-year government bond yield fell by -0.60% to close at 4.33% p.a.
AUTHOR: Allan Grant
Disclaimer: The above is intended as general market commentary only and is not intended as, and does not constitute, advice of any kind. No liability is accepted for any action taken based on the above or for any loss suffered as a result of reliance on the same.
