Weekly Market Recap
Week in review
- Unemployment increases to 5.3%
- Global manufacturing surveys
- Japan’s economy shrinks -0.4% q/q
- Australian capital expenditure
- Australian private sector credit
- Chinese PMI manufacturing
Thought of the week
The weakness in the January labour market report caused a swift repricing in assets as expectations for a RBA rate cut rose. The detail of the report showed a rise in the number of people employed but a higher unemployment rate. A bigger increase in the estimate of the size of the population meant that a larger rise in employment is needed to keep the unemployment rate down. This is troubling in the near term in reducing spare capacity in the economy and creating inflation via higher wages. However, in the long run, the better demographic profile of Australian and a rising working age population is very much a point of strength. Looking ahead, the unemployment rate is likely to bounce around in the low fives.
A swing lower in the unemployment rate is unlikely
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.