The Pulse
- In September equity and bond markets were dominated by investor concerns around the timing of the next US interest rate hike.
- Crude oil prices rose 8% on talks from producer countries of possible cuts to oil production levels.
- Chinese economic data continued to show that economic growth is being supported by strong housing construction and government stimulus measures.
- The US economy is growing at a modest rate but the rate of employment growth has tapered off in recent months as the economy approaches full employment.
- The Eurozone economy is performing in line with expectations but more recently investors have been concerned with the health of some of the banks, particularly in Italy.
- Australia’s economy has been benefiting from strong housing construction and growth in the services sector but consumers have become more cautious in recent months.
Global economies
In what was a relatively uneventful month for economic data, investor attention turned to the timing of US interest rate rises while economic indicators over the past month have continued to point to a world that is growing – albeit at a moderating pace.
US
In the United States the economy continued to perform reasonably well – September’s non-farm payrolls report showing 156,000 jobs were created
Europe
Germany saw a very large rise in IFO business climate index as concerns over the UK’s Brexit decision receded. The Business Climate Index rose 3.2 points to a seasonally-adjusted 109.5 in September, the highest level since July 2014.
China
The economy continued to be supported by strong new home price growth and robust housing construction in the major cities.
Asia Region
Japanese economic data continued to show the economy is struggling to generate growth. June quarter GDP growth was revised up to 0.7% annualised from 0.2% previously.
Australia
The economy continued to perform reasonably well, helped by the housing and services sectors – although employment fell by 3,900 jobs in August, which was weaker than expected.
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