Share markets fell sharply during March. The month was dominated by geopolitical events as the US and Israel launched joint strikes on Iranian targets (key leadership and military infrastructure) and Iran retaliated with missile strikes against US bases in the Middle East and civilian targets in both Israel and neighbouring Middle Eastern nations. Iran blocked access to the Strait of Hormuz for the majority of crude oil ships and threatened to destroy oil and other infrastructure assets in neighbouring nations. Crude oil prices surged over $100 USD per barrel and concerns mounted regarding global oil shortages and the flow-on impacts to economic growth and inflation.
The RBA raised the cash rate by 25bp to 4.10% during the month citing inflation concerns.
The ASX300 declined (-7.3%), A-REITs fell (-11.2%) and small caps declined (-11.0%). Currency-hedged global shares lost (-5.8%) while unhedged global shares lost (-2.5%), aided by the weaker AUD vs the US dollar and other key peers. Australian bond yields rose, resulting in a loss of (-1.4%) for the Australian bond index.
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.
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