Global markets were up during March, outperforming domestic equities.

The Chinese market was again the standout performer, as strong local PMIs indicated that the stimulus signalled by the central government late in 2018 is beginning to take effect. The UK market was also higher as they move closer to a potential deal to exit the European Union. The US continued its solid growth, with both major indices up on the back of optimism surrounding a potential trade deal. The Emerging Markets and Europe were less optimistic but still outperformed their Asian counterparts who struggled over the period.

Domestically, the index was up again strongly, wrapping up its best quarter in nearly a decade. A-REITs were the strongest performers during the month as investors began pricing in lower interest rates for longer, with the potential for a cut in the near future. Communications and Consumer Staples also benefited from the bond-proxy-type trade, as the market rewarded companies with more predictable cash flows. Banks were the biggest drag on the index, as the lower interest rate environment adds to their list of potential headwinds.

Stocks with reliable earning streams continue to be very well supported and as always we focused on holding quality businesses for the long term.

Disclaimer
This document has been prepared by DNR Capital Pty Ltd, AFS Representative – 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. It is general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within. The general information in this document has been prepared without reference to any recipient’s objectives, financial situation or needs. Before making any financial investment decisions we recommend recipients obtain legal and taxation advice appropriate to their particular needs. Investment in a DNR Capital managed account can only be made on completion of all the required documentation.

Source: Motor trader E-Magazine (May 2019)

10 May 2019