The Australian sharemarket fell by 11.1 per cent with total returns down 7.0 per cent. But bond returns rose 14.6 per cent – the best gains in 15 years. Telecommunications & technology rose, resources fell. But the year ended with a bang on hopes that the European debt crisis was finally settling.
The Year in Review 2011/12 – main points
- The European debt crisis dominated attention over the year
- A good timeline of the crisis: http://www.bbc.co.uk/news/business-13856580
- European leaders achieve a ‘three-pronged’ agreement in October
- The Eurozone agrees to another Greek bailout in March
- Nicolas Sarkozy lost the French presidency to socialist, Francois Hollande
- After two attempts, a new coalition government was elected in Greece
- Spain formally applied for assistance for its banking sector
- European leaders agreed on a single supervisor for euro zone banks in June
- The US economic recovery lost momentum
- China successfully slowed its economy to bring inflation under control
- The Reserve Bank cut the cash rate from 4.75% to 3.50%
- Global shares fell 16% between July and October due to the Greek debt crisis
- The ASX 200 rose 9.4% from January to May and then lost all gains in 17 days
- The Aussie dollar traded over a US17 cent range
- Australian 3yr bond yields hit record lows; 10yr yields hit 60 year lows.
The old adage is that ‘a picture tells a thousand words.’ Well we believe that’s a motto worth following. Click here to see CommSec’s review of 2011/12 and outlook of 2012/13. Words have been kept to a minimum, just plenty of facts, figures and charts to help guide your way through the coming year.
3 July 2012