Share markets extended gains in June as the European Central Bank, Bank of Canada and Swiss National Bank each cut their respective official cash rates by 25bp. US inflation for May was unchanged vs the prior month and the US ISM manufacturing measure beat expectations as did the non-farm payrolls print. The US Federal Reserve indicated that only a single rate cut should be expected in 2024, revising earlier expectations for several cuts. The RBA held rates steady and provided mixed guidance, noting weakness in consumption and GDP growth. Australia’s annual CPI inflation measure for May rose to 4% (up from 3.6% in the prior month) which surprised investors and suggested the next move may be another rate hike rather than cut.
Australian shares returned 0.9% in June, with the Financials, Consumer Staples and Health Care sectors the best performers for the month. A-REITs gained 0.2%. Currency-hedged international equities gained 2.3% and currency-unhedged investors’ returns were +1.6% as the Australian dollar gained against the Japanese Yen, Euro and US dollar.
The Australian 10-year government bond yield declined -0.10% 4.31% pa and the US 10-year government bond yield also fell by -0.10% to close at 4.40% pa.
Australian shares returned 0.9% in June, with the Financials, Consumer Staples and Health Care sectors the best performers for the month. A-REITs gained 0.2%. Currency-hedged international equities gained 2.3% and currency-unhedged investors’ returns were +1.6% as the Australian dollar gained against the Japanese Yen, Euro and US dollar.
The Australian 10-year government bond yield declined -0.10% 4.31% pa and the US 10-year government bond yield also fell by -0.10% to close at 4.40% pa.
DISCLIAMER:
The above is intended as general market commentary only and is not intended as, and does not constitute, advice of any kind. No liability is accepted for any action taken based on the above or for any loss suffered as a result of reliance on the same.
