Equity markets received positive news last week with tax reform moving ahead in the US and eurozone GDP surprising to the upside. The S&P/ASX 200 added 1.0%, the S&P 500 gained 0.3%, the EURO STOXX 50 gained 1.0% and the Nikkei 225 added 2.4%. iShares MSCI South Korea Capped ETF (IKO) was the top performing ETF for the week, returning 4.5%, while Australian resource sector ETFs (MVE, QRE and OZR) all returned in excess of 3.8%.
The US dollar continued to strengthen, with the Fed signalling 0.75% of rate hikes in 2018. The Australian dollar and the Japanese yen both declined by 0.4%. Pound sterling also declined 0.4% despite the BoE's first rate rise in a decade.
WTI crude gained 3.2%, climbing above US$55/bbl for the first time since mid-2015. Gold pulled-back 0.3%, while Palladium continued to rally, gaining 3.0% for the week.
The Australian ETF market saw inflows of A$156m and outflows of just A$4m from domestically domiciled ETFs last week. The largest inflows were into cash/ fixed income funds (AAA and PLUS) and domestic equity funds (QOZ, IOZ, MVW).