Share markets rebounded in April from the prior month sell‑off as a shaky two-week US/Iran ceasefire announced on the 7th of April tempered escalation concerns. While the ceasefire deadline was extended, shipping through the Strait of Hormuz remains severely constrained (around four to five vessels a day versus in excess of 100 pre‑conflict), with scores of ships stranded amid Iranian and American blockades. Oil prices were volatile during the month and remain north of $100 US dollar per barrel.
The RBA Cash Rate target remains at 4.10% following increases in each of February and March. The US Federal Reserve left the Fed Funds Rate target of 3.5%-3.75% unchanged and the US Senate Banking Committee approved Kevin Warsh as replacement for Jerome Powell as Fed chair from May 15 onwards.
The ASX300 returned 2.3%, A-REITs jumped 8.6% and small caps returned 3.3%. Currency-hedged global shares gained 8.6% while unhedged global shares gained 4.4%, hindered by the AUD strength vs key peers. Australian bond yields rose, curbing returns for the Australian bond index which added 0.1% for the month.
AUTHOR: Ben Lenz 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.
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