Financial markets this week The U.S. share market reached a new high this week with optimism over the economic outlook pushing the S&P 500 Index 1.5% higher. The local S&P ASX 200 Index also advanced strongly, rising 0.7%. Once again, however, the Australian market was weighed down by the resource sector with iron ore prices hitting 20 month lows. The weakness in the iron ore price failed to dent confidence in the $A, which rose U.S. 0.8 cents to U.S. 93.1 cents over the week. The ongoing rally on equity markets and optimistic growth outlook has not caused any change of direction on bond markets. A lack of inflationary concerns has allowed bond yields to remain low with the Australian 5-year Government bond yield dropping 0.06% to 3.07% this week. This represents a fall of more than 0.2% since the start of the month.
Posted on: Fri, 30 May 2014 07:00:00 +0000
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