Share markets were mostly positive in June. While tensions in the Middle East remain unresolved, a temporary ceasefire agreement enabled a partial reopening of shipping lanes in the Strait of Hormuz, driving oil prices lower toward US$70 per barrel and easing concerns of persistent high inflation. The US Federal Reserve left the Fed Funds rate unchanged at 3.5%–3.75% though market expectations of a rate hike by year-end increased. Australian quarterly GDP growth for the March quarter came in at a subdued 0.3% (2.5% annualised). The Reserve Bank of Australia held the cash rate at 4.35% following three hikes in recent months, while the May CPI print eased to 4.0% year-on-year, down from 4.2% the prior month.
The ASX300 returned 0.6%, A-REITs increased 1.7% while small caps declined -2.0%. Currency-hedged global shares were flat while unhedged global shares gained 3.1%, bolstered by AUD weakness. Australian bond yields fell, with the Australian bond index gaining 1.0% for the month.
AUTHOR: Allan Grant 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.
.png)