Markets summary - July 2024

Share markets gained strongly in July despite further unrest in the Middle East following a deceleration in US and Australian CPI inflation readings along with guidance from the US Federal Reserve Chairman that a reduction in interest rates “could be on the table at the September meeting”. The RBA held rates steady during the month while the Bank of Canada cut interest rates by a further 25bp and the Bank of Japan raised rates from 0-0.10% to 0.25% p.a. The comments from the US Federal Reserve saw US technology stocks rebound after a slump earlier in the month triggered by softer than expected earnings from mega-cap US Technology firms Alphabet (Google) and Tesla.

The ASX300 Accumulation Index gained +4.1% while A-REITs surged +6.8%. Global share markets gained 1.2% and currency-unhedged investors returns were +4.1%, aided by the AUD which fell sharply against the Japanese Yen, Euro and US dollar.

The Australian 2-year government bond yield declined by -0.29% to 3.88% and the Australian 10-year government bond yield fell -0.20% to 4.12%. The US 2-year government bond yield declined by -0.50% to 4.26% and the US 10-year government bond yield fell by -0.37% to close at 4.03%.

 

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.