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Bi Monthly Market Update | Faring better and lucky to be in the West…

By Jody Fewster

Faring better and lucky to be in the West…

  • US stocks continued their stellar recovery on government stimulus, signs of economic revival, and more progress toward a vaccine. The S&P 500 alone has surged 35%, its largest five-month percentage gain since 1938.
  • The Treasurer today made it official – we are in a recession with a 7% contraction in GDP for the last quarter.  Whilst it’s a shocking result we have fared much better than most other economies (with UK – 20%, USA – 31%, India – 24%, Canada – 12% heading up a long list).
  • The RBA has kept the cash rate on hold (0.25%) and extended a further $110 billion lending line to the banks so that businesses and households can continue to borrow at cheap interest rates.
  • The Aussie dollar reached a 2 year high yesterday which saw a sell-off in our share market. It is now trading at $US 73.37c as I type and the S&P ASX – 200 is back up at 6045.
  • At the end of the reporting season, the ABS data showed company profits jumped 15% in the June Quarter when economists had expected a fall.
  • A further deterioration in China Australia trade relations hits WA as China has suspended imports from CBH (Australia’s largest grain exporter).
  • Iron Ore hit $US 128.5/t on Monday up from $US 73/t in March, with Fortescue now WA’s biggest ASX listed company; go the boy from WA!
  • The Australian is today reporting that “house prices have proved remarkably resilient”. Perth has seen no reduction in prices, and the South West of our State is experiencing a mini boom.
  • The rental market is so tight we are desperate for more homes for our ever-expanding tenant’s database, so for all your leasing and property management needs call us for a plan.
  • My team and I are standing by to successfully and professionally handle ALL of your property needs.

Authored by Jody Fewster

Please call 0414 688 988 if I can provide you with a current market appraisal and detailed marketing plan for your home or investment property.
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