A weaker than expected US job creation print for January, US President Donald Trump’s announcement of 25% tariffs on worldwide steel and aluminium imports and a hotter than anticipated US CPI print for January (0.5% vs 0.3% expected) dampened confidence. US Federal Reserve chairman Jerome Powell downplayed expectations of future official rate cuts, noting the Fed was “close but not there on inflation”. The RBA cut the cash rate by 25bp to 4.15% as was widely expected by economists but remained cautious about the prospects for further disinflation given the tight labour market. Later in the month the Australian CPI print for January saw annual headline inflation unchanged at 2.5% with a modest increase in “core” inflation.
The ASX300 Accumulation Index declined -3.8% and A-REITs fell -6.1%. Global share markets returned -0.9% while currency-unhedged global shares returned -0.4%, aided by the AUD which dipped against the US dollar, Euro and Japanese Yen.
The Australian 10-year government bond yield declined by -0.14% to 4.29% and the US 10-year government bond yield declined by -0.33% to 4.21% at month end
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The above is intended as general market commentary only and is not intended as, and does not constitute, advice of any kind. No liability is accepted for any action taken based on the above or for any loss suffered as a result of reliance on the same.
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