US President Donald Trump met with Russian President Vladimir Putin and separately with Ukrainian President Volodymyr Zelenskyy (and other EU leaders), reiterating the US would not deploy ground troops to Ukraine but hinted at possible air support under future security guarantees. President Trump extended his tariff campaign, doubling duties on Indian goods to 50% due to India’s purchases of Russian oil and weapons and increasing tariffs on many imported Canadian goods to 35%. Trump extended the 90-day pause on “reciprocal tariffs” applicable to Chinese goods for a further 90 days as negotiations continue. US Federal Reserve Chairman Jerome Powell warned that tariff-driven inflation and a weaker jobs market has created a “challenging situation.” While rates were left unchanged, Powell hinted that the balance of risks could justify a policy change, fuelling expectations of a September rate cut.
Domestically, the Reserve Bank of Australia delivered a widely-expected 25bp cut, lowering the cash rate to 3.60%, its third reduction this year. Australian consumer sentiment surged to a 3.5 year high, buoyed by easing mortgage costs and an improving economic outlook.
The ASX300 Accumulation Index gained 3.2% and A-REITs gained 4.4%. Global share markets returned 2.0% and currency-unhedged investors returned 0.9%, hindered by the stronger AUD/USD. The Australian Composite Bond index rose 0.3% and bond yields were little-changed for the month.
Author: Allan Grant - Senior Portfolio Analyst
Domestically, the Reserve Bank of Australia delivered a widely-expected 25bp cut, lowering the cash rate to 3.60%, its third reduction this year. Australian consumer sentiment surged to a 3.5 year high, buoyed by easing mortgage costs and an improving economic outlook.
The ASX300 Accumulation Index gained 3.2% and A-REITs gained 4.4%. Global share markets returned 2.0% and currency-unhedged investors returned 0.9%, hindered by the stronger AUD/USD. The Australian Composite Bond index rose 0.3% and bond yields were little-changed for the month.
Author: Allan Grant - Senior Portfolio Analyst
Disclaimer:
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.
