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Markets chartpack

Markets chartpack. April 2007. What correction? The China fall…. The Shanghai composite index fell almost 9% on Tuesday 27 th Feb 2007 and weighed on sharemarkets around the globe. Markets are now almost back to their earlier peaks, with some (including China) even higher.

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Markets chartpack

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  1. Markets chartpack April 2007

  2. What correction?The China fall… • The Shanghai composite index fell almost 9% on Tuesday 27th Feb 2007 and weighed on sharemarkets around the globe. • Markets are now almost back to their earlier peaks, with some (including China) even higher. • In late March, the US market had its best week in four years. “…in my opinion, share markets around the world had become over-valued, or at least fully valued. Overvalued markets can remain that way for a long time, but they are vulnerable to shocks, and the 9% fall in the China market was just such a shock.” Source: BT Financial Group Chief Economist Chris Caton

  3. Australian dollar strengthens • Our local currency has hit decade highs against the US dollar recently. During March it rose: • 2.53% against the US dollar • 1.74% against the Euro • 2.17% against the Yen

  4. Australian dollar strengthens (cont.) • In recent years, when the $A has risen, it is usually because the US dollar has fallen. • Forecasts that the $A is headed for 85 US cents really embody a view that the US dollar will fall by a further 5%. I think this unlikely. • A strong currency affects the profitability of Australian companies that compete with imports, that export, or that earn profits offshore. Source: BT Financial Group Chief Economist Chris Caton

  5. Currency markets – $A per $US Source: BT Financial Group. Figures as at 31 March 2007.

  6. Currency markets – $A per Euro Source: BT Financial Group. Figures as at 31 March 2007.

  7. Currency markets – $A per Yen Source: BT Financial Group. Figures as at 31 March 2007.

  8. Global indices Source: BT Financial Group. Figures as at 31 March 2007.

  9. Asset class performance Source: S&P/ASX 300 Acc Index, MSCI World ex Aust (net divs) Index in $A, S&P/ASX 300 Property Index, UBS Composite 0+ years index, Citigroup World Government Bond, Unhedged in AUD

  10. Long-term asset class performance Source: S&P/ASX 300 Acc Index, MSCI World ex Aust (net divs) Index in $A, S&P/ASX 300 Property Index, UBS Composite 0+ years index, Citigroup World Government Bond, Unhedged in AUD

  11. Asset class performance Source: S&P/ASX 300 Acc Index, MSCI World ex Aust (net divs) Index in $A, S&P/ASX 300 Property Index, UBS Composite 0+ years index, Citigroup World Government Bond, Unhedged in AUD Best performing asset class highlighted in red

  12. Asset class performance Source: S&P/ASX 300 Acc Index, MSCI World ex Aust (net divs) Index in $A, S&P/ASX 300 Property Index, UBS Composite 0+ years index, Citigroup World Government Bond, Unhedged in AUD

  13. Oil prices (US$ per barrel) Source: BT Financial Group. West Texas Intermediate as at 31 March 2007.

  14. Official world interest rates Source: BT Financial Group.

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