Financial markets this week Global share markets bounced back this week from the previous weeks decline. Better than expected manufacturing data in both the U.S. and China contributed to a 1.2% rise in the U.S. S&P 500 Index. However, despite making up ground late this week, the local S&P ASX 200 Index was still 0.6% lower for the week. Recent weakness in the iron ore price has held back parts of the resource sector in recent times. The $A has also drifted down, falling U.S. 1.3 cents this week to U.S. 92.3 cents. As was the case in 2013, consumer sentiment has recorded a significant dent in the days following the Budget Statement. The Westpac-Melborune Institute Index of Consumer Sentiment declined by 6.8% to 92.9 points in May. The long term average for the Index is 100 points. Meanwhile, household incomes continue to be kept in check by very modest wages growth. The Wage Price Index rose by just 0.7% over the March quarter, with the annual rate of wages growth remaining steady at 2.6%. As result, real wage growth remains negative given the latest annual inflation rate of 2.9%.
Posted on: Fri, 23 May 2014 06:25:01 +0000
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