Lonsec Market Commentary – September 2017
The Australian market had a fifth month of negative or flat growth in September, with the ASX 200 Accumulation Index returning -0.02% as commodity sectors pulled back.
At its October meeting the RBA left the cash rate on hold at 1.50%.
The unemployment rate remained steady at 5.6%. The participation rate remains high in historic terms, moving higher in trend terms throughout 2017 and sitting comfortably above 65%.
‘Globally, the MSCI World Index gained 0.68% in AUD terms, supported by US and European shares’.
Australian consumers still struggling to stay positive. ‘The Westpac Melbourne Institute Index of Consumer Sentiment rose 2.5% from 95.5 in August to 97.9, but pessimists still outnumber optimists’. There are concerns around interest rates, deteriorating housing affordability and rising energy prices these are impacting the level of confidence, offsetting the improved outlook for employment.
(Lonsec September 2017, Issue Date: 11-10-2017)