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Markets chartpack

Markets chartpack. May 2007. Interest rates on hold. Inflation data during April The headline CPI rose by 0.1% in the March quarter, following a fall of 0.1% in the December quarter.

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Markets chartpack

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  1. Markets chartpack May 2007

  2. Interest rates on hold Inflation data during April • The headline CPI rose by 0.1% in the March quarter, following a fall of 0.1% in the December quarter. • In year-to terms, the headline CPI has increased by 2.4 %, down from 3.3% in the year to the December quarter. • Lowest year-to rate since the September quarter of 2004. Source: BT Financial Group Chief Economist Chris Caton

  3. Interest rates on hold (cont) • Official interest rates rose three times in 2006 and currently stand at 6.25%. • The most recent reading of inflation appear to have put to rest expectations of another rise in the short term. “The RBA still has a lot to think about. The recent labour-market data suggest the economy still has a fair head of steam, and wage pressures are increasing. Credit growth is still strong. On the other hand, the strong exchange rate is doing some of the work of an official monetary-policy tightening.... in my view, rates are on hold for the foreseeable future.” Source: BT Financial Group Chief Economist Chris Caton

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

  5. Australian dollar update • Our local currency has hit decade highs against the US dollar recently. During April it rose: • 3.03% against the US dollar • 0.50% against the Euro • 4.28% against the Yen

  6. Australian dollar update (cont.) • In recent years, when the $A has risen, it is usually because the US dollar has fallen. • The Australian dollar recently traded at 17-year highs against the US dollar amid speculation of another interest rate increase. • 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

  7. Currency markets – $A per $US Source: BT Financial Group. Figures as at 30 April 2007.

  8. Currency markets – $A per Euro Source: BT Financial Group. Figures as at 30 April 2007.

  9. Currency markets – $A per Yen Source: BT Financial Group. Figures as at 30 April 2007.

  10. Global indices Source: BT Financial Group. Figures as at 30 April 2007.

  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

  12. 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

  13. 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

  14. 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

  15. Oil prices (US$ per barrel) Source: BT Financial Group. West Texas Intermediate as at 30 April 2007.

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