May 2010
This month's Market Watch key points include:
- Risk aversion returned sharply in May. This was driven by sovereign risk concerns in Europe and the impact on European economic growth, re-emergence of financial regulation and signs of an economic slowdown in China.
- A three-speed global economy has emerged led by Asia and emerging economies (including Australia), followed by the US and Japan with UK
and Europe lagging.
- In Australia the Federal Government released its 2010/11 Budget showing a return to surplus in 2012/13 and very low government debt levels – a welcome differentiator with the current concern over sovereign debt levels.