December’s Performance Overview
- After a reasonably encouraging start to the month, equities once again came under selling pressure, denying investors the usual Christmas rally into the end of the year.
- Investors were again faced with a plethora ofmacro data including increasing concerns of a potential break-up of the Eurozone, further evidence of theresilience of the US economy and the domestic market hit by a number of profit warnings suggesting a deteriorating consumer and employment environment.
- After navigating the majority of the AGM season, profit warnings from Talent 2, JB Hi-Fi, Billabong and Kathmandu highlighted a sharp deterioration in theretailing environment heading into Christmas combined with risks around the employment market.
- The Australian equity market (ASX200) finished December lower (-1.5%).
Download the Wrap Up of the Market for December 2011 here.