Commsec has released its review of the 2012/13 financial year highlights.
In summary:
- The European debt crisis eased in the early part of 2012/13, after the European Central Bank acted as lender of last resort announcing a bond buying program.
- Stimulus in September – China announces $157 billion worth of infrastructure projects. US Federal Reserve begins open ended bond buying program –QE3.
- Democrats win US election, providing another boost to sharemarkets.
- US Budget sequestration dominates sentiment in late December.
- China tightens policy on property finance in March 2013.
- Cyprus formally bailed out in March 2013.
- Nikkei gains 80% between November -May on Japanese stimulus.
- The US economic recovery gathers momentum, Fed discusses exit strategy.
- The Reserve Bank cuts the cash rate from 3.50% to 2.75% over 2012/13.
- China credit crunch in June. Shibor – interbank lending rate – in focus.
- Policymakers attempt to clean up the “shadow banking system”.
- The ASX 200 rose 19.3% from November -May and then lost 11% in six weeks.
- The Aussie dollar traded over a near US15 cent range in 2012/13.
Click here for the full review.