Share markets were mostly positive in July despite renewed tensions between Iran and the US-Israel alliance, which threatened the fragile ceasefire established in June. Concerns about further disruptions to global energy supplies contributed to higher oil prices, with Brent crude ending the month well above its June lows. Trade policy returned to focus as US President Trump announced a new round of tariffs on imports from more than 60 countries. In the United States, inflation surprised to the downside, with monthly CPI falling (-0.4%) and annual inflation easing to 3.5%. In Australia, the June quarter CPI reading came in softer than expected at 0.6%, with annual inflation moderating to 3.8%.
The ASX300 returned 2.2% while A-REITs declined marginally (-0.1%) and small caps fell (-3.2%). Currency-hedged global shares were broadly flat, gaining 0.3% while unhedged global shares declined (-0.9%), hampered by AUD strength. Australian bond yields rose, with the Australian bond index falling (-0.4%) for the month.
AUTHOR: Ben Lenz Portfolio Analyst
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.
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