Investments & Wealth

Economic and Market Outlook – April 2024

12 April 2024

The information in these articles is current as of 1 April 2024

Welcome to our latest Economic and Market Outlook – April 2024.

This edition covers the following topics:

Australian economy

The domestic economy continued its slow pace to start 2024. While there are pockets of resilience, we continue to see material challenges to household spending posed by high interest rates and inflationary pressures. To add to this the weakness of our major trading partner China with the implosion of its property sector poses major challenges for key exports such as iron ore. Against this backdrop the onus is rising for the RBA to cut interest rates soon or else risk exacerbating the downturn. Learn more about our findings below.

International economy

The global economy looks positioned to continue improving in 2024 after a difficult year navigating the challenge of higher interest rates and commodity price shocks that contributed to anaemic economic expansion. With inflation normalising more towards pre-COVID levels across the developed world, the stage is set for rate cuts by central banks which should support economic growth returning towards trend levels. Discover more our views on the international economy below.

Outlook and sector view for Australian equities

The Australian market has started the year well with the expectation of interest rate cuts seeing a boom in interest for banking and property shares especially. Looking at the fundamental challenges facing major sectors finds us underwhelmed at recent price action. Find out more on our outlook below.

Outlook for international equities

An Artificial intelligence spending boom and voracious appetite for weight loss drugs continue to drive significant growth on the global markets with the looming prospect of lower interest rates offering further tailwinds. While lofty valuations give us scope for caution our overall growth expectations lead us to see a balanced risk backdrop and maintain our positive stance on global markets. For more on our perspectives, please see below.

Any advice included in this newsletter has been prepared without taking into account your objectives, financial situations or needs. Before acting on the advice you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs. You should also obtain a copy of and consider the Product Disclosure Statement for any financial product mentioned before making any decisions. Past performance is not a reliable indicator of future performance. Advisors at Pitcher Partner Sydney Wealth Management are authorised representatives of Pitcher Partners Sydney Wealth Management Pty Ltd, ABN 85 135 817 766, AFSL number 336950.