US non-farm payrolls for April came in below expectations and the unemployment rate ticked slightly higher to 3.9%. Australian CPI inflation came in above expectations for April (+3.6% annualised vs +3.4% expected) which pushed-back expectations for domestic rate cuts. Major global central banks held interest rates steady with the exception of Sweden which surprised markets by cutting its official cash rate by 0.25%.
Australian shares returned 0.9% in May, with the Technology, Utilities and Financials sectors the best performers for the month. A-REITs gained 1.9%. Currency-hedged international equities gained 4.0% and currency-unhedged investors’ returns were +2.0% as the Australian dollar gained against the US dollar, Euro and Japanese Yen.
The Australian 2-year government bond yield and the Australian 10-year government bond yield were little changed at 4.12% and 4.41% respectively. The US 2-year government bond yield declined by -0.16% to 4.87% and the US 10-year government bond yield fell by -0.18% to close at 4.50%.
Author: Allan Grant
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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