The US Federal Reserve cut rates by 25bps to a 3.75–4.00% range, noting scarcity of data available due to yet another US federal government “shutdown” disrupting services. Australian economic prints released during the month pointed to labour market softness combined with an uptick in inflation, curbing expectations for additional interest rate cuts in the near-term.
US President Donald Trump struck a rare earth supply deal worth up to $8.5 billion during his meeting with Anthony Albanese, alongside new trade agreements with Malaysia, Thailand, Cambodia, and Vietnam. Late in the month, President Trump announced a deal with China after meeting with Xi Jinping that included some easing of US tariffs in exchange for a delay in the implementation of Chinese rare earth export restrictions, a commitment from China to make agricultural purchases from the US and other measures. Fighting in Gaza largely halted after a US-brokered deal saw Hamas release all of the remaining living Israeli hostages (and some of the bodies of the deceased) in exchange for prisoners. The exchange is part of a broad but highly fragile plan aimed at securing lasting peace.
The ASX300 gained 0.4% and A-REITs gained 0.6%. Global share markets returned 2.6% and currency-unhedged investors returned 3.3%, aided by the weaker AUD/USD. The Australian Composite Bond Index returned 0.4% while bond yields were mixed over the month (shorter-term bond yields were slightly higher but longer-term bond yields were slightly lower.
Author: Allan Grant - Senior Portfolio Analyst
US President Donald Trump struck a rare earth supply deal worth up to $8.5 billion during his meeting with Anthony Albanese, alongside new trade agreements with Malaysia, Thailand, Cambodia, and Vietnam. Late in the month, President Trump announced a deal with China after meeting with Xi Jinping that included some easing of US tariffs in exchange for a delay in the implementation of Chinese rare earth export restrictions, a commitment from China to make agricultural purchases from the US and other measures. Fighting in Gaza largely halted after a US-brokered deal saw Hamas release all of the remaining living Israeli hostages (and some of the bodies of the deceased) in exchange for prisoners. The exchange is part of a broad but highly fragile plan aimed at securing lasting peace.
The ASX300 gained 0.4% and A-REITs gained 0.6%. Global share markets returned 2.6% and currency-unhedged investors returned 3.3%, aided by the weaker AUD/USD. The Australian Composite Bond Index returned 0.4% while bond yields were mixed over the month (shorter-term bond yields were slightly higher but longer-term bond yields were slightly lower.
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.
