Mar 18, 2016 | Investment Advice

International News (Issue 391) – 18 March 2016

I guess the main news from offshore this week was the relative ‘dovishness’ of the US Federal Reserve, who met on Wednesday night Australian time.

Though no one expected a rate hike, the commentary out of the ‘Fed’ pointed to a slower trajectory for US interest rate rises than the market had been anticipating.

The Fed’s internal economic assessment seemed to point to TWO interest rate rises from here in 2016, down from FOUR and indicated the US Central Bank were still more defensive of growth than concerned by the slowly bubbling inflation picture in the United States.

I haven’t mentioned this much since personally I had been less focused on it myself, but the reality is such that core US inflation has now risen to its highest level since the GFC (2.3% annually) and should be something we and all investors continue to keep a close eye on.

Concerns that the worlds most valuable company, Apple (AAPL), could disappoint investors in the coming quarters are beginning to increase in spite of optimism surrounding next weeks launch of a new handset.

Large suppliers to Apple, Jabil Circuits (JBL) of the US and Pegatron Corp of Taiwan commented this week that demand for their products had remain poor and in Jabil’s case, deteriorated further.

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