Markets summary - February 2024

Share markets gained in February, led by US technology stocks as NVIDIA’s earnings demonstrated huge AI-driven revenue growth. US CPI surprised to the upside for January, due largely to an increase in housing/shelter which underpinned beliefs that several interest rate cuts remain probable in 2024, though perhaps less than were expected in prior months. Locally, the Westpac Consumer Sentiment index rebounded, albeit remaining at pessimistic levels. Major global central banks held interest rates steady.

Australian shares gained 1.0% in February, led by the Technology, Consumer Discretionary and Financials sectors. Australian Real Estate Investment Trusts (A-REITs) rallied 4.8% for the month. Currency-hedged international equities returned 4.7% and currency-unhedged international equities gained 5.9%, benefitting from the Australian dollar which depreciated in value against the US dollar and Euro.

The Australian 2-year government bond yield climbed by 0.12% to 3.80% and the Australian 10-year government bond yield rose by 0.12% to 4.14% pa. The US 2-year government bond yield rose by 0.41% to 4.62% and the US 10-year government bond yield increased by 0.34% to close at 4.25% pa.

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.