The Japanese earthquake and tsunami disaster dominated financial market news in March.
The All Ordinaries Index fell by as much as 7% at the height of nuclear concerns at the Fukushima power plant. The good news was that the Australian share market recovered strongly in the last week of the month and closed up 0.1% at 4,928.6 points.
Global markets (excluding Japan) followed a similar trend with the Dow Jones Index gaining 0.8%, the FTSE falling 1.4% and the Hang Seng gaining 0.8%.
Japanese shares look set for a longer recovery cycle, with the Nikkei 225 Index falling 8.2% in March.
Financial markets are proving extremely resilient shrugging of a string of natural disasters (both in Australia and overseas), political unrest in the Middle East and a surge in the price of oil. With this start to the year, it should be seen as a positive sign equities continue to be supported.
There was positive domestic economic news toward the end of the month. Business confidence has jumped to a record high, while worries over a strong Australian dollar, rising interest rates and a slowdown in the housing market appear to have receded into the background for now.
The Australian Dollar continued to strengthen and is currently buying US103.97 cents to one Australian dollar.
The Reserve Bank of Australia left interest rates on hold in March. The RBA board meets tomorrow to assess interest rates, with expectations of the cash rate to remain at 4.75% per annum.
For more information please contact Ryan Love on 1300 856 338 or e-mail ryan.love@apexpartners.com.au.
This article is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation and investment objectives.