Market Update: 20 August 2024
Australia’s financial markets have had a positive week, with the ASX 200 closing 2.5% higher. The release of wage inflation data for Q2 showed a year-over-year increase of 4.1%, slightly surpassing expectations. On the employment front, Australia experienced a strong job growth of 58,200 in July, much higher than anticipated, though the unemployment rate rose to 4.2% due to an increased participation rate. Looking ahead, the focus will be on the ongoing Australian reporting season, particularly the impacts of consumer spending and inflation, along with the upcoming RBA Policy Meeting minutes.
Globally, optimism in the US surrounding resilient economic growth has driven significant gains across major indices, with the S&P 500, Nasdaq, and Dow Jones posting their best weekly performances since November 2023. US headline inflation dipped to 2.9% in July, reinforcing market expectations of a September rate cut. Meanwhile, European markets followed suit, with strong performances across major indices, although the Eurozone’s slight decline in labour productivity in Q2 could challenge the ECB’s rate cut plans. the US, optimism surrounding resilient economic growth has driven significant gains across major indices, with the S&P 500, Nasdaq, and Dow Jones posting their best weekly performances since November 2023. US headline inflation dipped to 2.9% in July, reinforcing market expectations of a September rate cut. Meanwhile, European markets followed suit, with strong performances across major indices, although the Eurozone’s slight decline in labour productivity in Q2 could challenge the ECB’s rate cut plans.
Japan’s Nikkei rebounded strongly this week, up 8.7%, supported by encouraging US consumer and labour data and better-than-expected domestic GDP growth. China’s markets also traded higher, despite industrial production slightly missing forecasts. Overall, the global economic landscape shows resilience, with positive developments across major regions, though some challenges remain in specific sectors.
Published 20/8/2024
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
Raiz Invest Australia Limited – Authorised Representative of AFSL 434776. The Raiz Invest Australia Fund and Raiz Property Fund are issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815).
Raiz Invest Super is a Division of AMG Super and is issued by Equity Trustees Superannuation Limited (AFSL 229757, RSE Licence No L0001458) as Trustee of AMG Super.
The information is general information only and does not take into account of your personal financial situation, goals or needs. You should obtain financial advice tailored to your circumstances by a licensed financial adviser.
A Product Disclosure Statement (PDS) and Target Market Determination (TMD) for Raiz Invest Australia Fund, Raiz Invest Super and Raiz Property Fund (together, the Products) are available on the Raiz Invest website and App. Please read and consider the PDS and TMD to understand the risks and determine if the Products are suitable for you. The risks and fees are fully set out in the PDS and include the risks that would ordinarily apply to investing.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in the Products.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified.
Any opinions or information expressed are subject to change without notice.
Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.
Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).
