5 Jan 2009

Last week saw the final trading days of 2008 and the first trading day of 2009. We will remember 2008 as one of the most tumultuous investing years on record, with volatility impacting virtually all asset classes. The global economic and financial crises saw the collapse or take-over of several global financial companies, central bank cash rates being slashed around the world, and equities markets sold off.

For the year, the United States’ Dow Jones Industrial Index closed down 33.8%, and the S&P500 closed down 38.5%. In Australia, the S&P/ASX200 Index finished the year down 41.3%.

In commodities markets, oil finished the year at US$44.60 a barrel, after starting the year at US$96 a barrel and peaking at over US$140. By comparison, gold finished the year up 5.8% at US$882.05 an ounce.

The Reserve Bank of Australia’s cash rate target finished the year at 4.25%, down from 6.75% at the start of the year, and down from 7.25% at its peak.

As all eyes turn towards 2009, key data releases for the upcoming week will be the Australian retail sales figures for November out on Wednesday, and employment data for the United States released on Friday.

Daniel Baxter

Strategy Analyst

QIC

 

Disclaimer QIC (ABN 95 942 373 762) and its subsidiaries and associated entities, and their directors, employees and representatives (the QIC parties) do not warrant the accuracy or completeness of this information. To the extent permitted by law, the QIC parties disclaim all responsibility and liability for any loss or damage of any nature whatsoever which may be suffered by any person, directly or indirectly, through relying on the information, whether that loss or damage is caused by any fault or negligence of the QIC parties or otherwise. The information is not intended to constitute advice and you should seek professional advice before relying on the information.

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