It's Groundhog day I'm afraid. It was another difficult week, especially early on. The US lead into our Monday morning was poor, with US employment figures missing expectations. The Australian market proved somewhat resilient on Monday however, finishing down slightly.
Global markets were also poor on our Monday night, based on concerns about banks (impact of the low / negative interest rate environment, and the health [or otherwise] of balance sheets), an oil price fall, and concerns about global economic growth generally. This culminated in a bad day for the Australian market on Tuesday, down 2.8%.
The route initially continued on overseas markets, for the same reasons as the night before. It ended up being volatile interday trading, with the US market finishing basically flat.
The CBA result released on Wednesday wasn't bad (it wasn't great either), providing some relief to the market. The Australian market couldn't gain traction however, finishing down for the day. On Wednesday night the US market attempted a rally, but faded to finish flat again. The Australian market showed some strength on Thursday, assisted by the banks and finance companies.
Overseas Thursday night saw a further drop in the US, to -1.23%. To finish the week, the Australian market ended on -0.71%. This culminated in the US market and Australian market finishing down -4.5% and -3.8% for the week respectively.
Your Investment Team is looking forward to the next two weeks. We (and hopefully market participants more broadly) will be focused on companies; getting updates on how companies are going operationally and financially, as well as their outlooks. The share-markets will continue to do what they will do, but what really matters are the companies in which we invest for our clients.