Market update for Q1 FY2018
09 November 2017
Qantas Super delivered positive performance in the first three months of the 2018 financial year. Here’s what happened in the quarter across global markets.
China has continued to surprise observers with its economic strength, improving the prospects for a transition to sustainable growth under the leadership of President Xi Jinping.
Government infrastructure spending is fuelling a construction boom, while manufacturing activity grew at its fastest pace since 2012. June quarter GDP data showed economic growth holding steady at 6.9% a year, with the OECD forecasting it would remain around 6.8% for the rest of 2017.
The European economy continues to gain momentum despite ongoing uncertainty over the Brexit process. The European Central Bank left rates on hold this quarter, while upwardly revising its 2017 growth forecast to 2.2%. Unemployment is down, with six million new jobs created since the economic crisis, while manufacturing is at its highest level since 2011.
Good economic news helped drive the US share market to record highs as unemployment fell – and despite the effects of hurricanes Harvey and Irma.
The US Federal Reserve left the cash rate unchanged and confirmed that it was ready to start unwinding the quantitative easing program that was put in place after the global financial crisis – providing another vote of confidence in the US economy.
Back home, the Australian share market had a lacklustre quarter, as commodity prices fluctuated and the utilities sector came under pressure. This was despite strong jobs growth which added 81,900 new jobs in July and August, and a largely positive reporting season that saw total profits for Australia’s top 200 companies rise 63%.
Meanwhile, the Australian economy continued to pick up pace, with GDP expanding by 0.8% in the June quarter, for an annual growth rate of 1.8%.
How we performed in 2016/2017
View more articles