Start Investing Online Today
In August, the market was supported by encouraging inflation data for July. Thanks to government energy measures, power costs came down, helping to lower annual inflation from 3.8% to 3.5%.
The Australian Prudential Regulation Authority (APRA) has announced major changes to the structure of bank hybrid securities, which have been used as a defensive investment for some retail investors for years.
With economic growth slowing down, the Reserve Bank of Australia (RBA) might have room to ease policy sooner.
Higher than expected inflation figures saw markets price in a potential upward move on interest rates from the RBA.
Global equity markets, buoyed by a positive economic outlook and improved inflation data, more than recovered from April's decline in May.
Unexpectedly high global inflation, along with a re-evaluation of Federal Reserve policies and an increase in bond yields, led to a notable decline in equity markets in April.
Global equities continued their upward trajectory, buoyed by robust economic indicators and earnings, with a 3% rise in March and a quarterly gain of 14.1%,the strongest since 2013.
Economic Snapshot: Markets rise as inflation eases
Australian equities rose further in January with a 1.2% lift, taking the 3-month advance to 14 %. Banks continued to lead the charge, rising 5.3% with insurance up 5.9% and energy 5.2%.
After lagging markets for much of the year, Australian stocks rebounded sharply in December, rising 7.3% to close at record levels. Interest rates and inflation remain the key data points in focus.
Global equities rose by 9.4% in November, the largest monthly gain since the 2020 COVID recovery, driven by signs of economic moderation in the US and disinflation in developed markets.
Global equity markets dropped a further 2.9% in October taking the year-to-date return to 8.2%. Bond yields continued to climb, undermining valuations across a range of assets, while the Israel-Hamas conflict added to uncertainty and risk aversion.
Investor sentiment turned in September with inflation data suggesting there were risks of further interest rate hikes ahead to cool ongoing consumer price pressures.
Inflation slowed to 4.9% in July, down from 5.4% in June, which cemented expectations of a pause in interest rates.
Global equities rose 2.1% in the month, with a 20% year-to-date gain in AUD terms. Value, small caps, and cyclical-stocks led the rally.
Global equity markets rose 3.1% in June, with a 7.6% return for the quarter. The rally included growth stocks, the IT sector, banks, retailers, small caps, REITs, and materials.
We are witnessing a significant shift in generational wealth accumulation and concerns that the next generation could be the first since Federation to be worse off than their parents.
The RBA raised the cash rate by 25 basis points to 4.1% in early June, the second increase since April.
In April, global developed equities saw a slight positive tone, rising by 1.8%, with Europe ex-UK being the standout performer.
Global equity markets rose in March after a tough February.
Global investors faced a reality check in February, reflecting a more cautious view on upcoming central bank decisions.
