Markets summary - October 2023

Share markets declined in October as the Hamas/Israel war erupted, with many fearing a spill-over into broader regional warfare. Investors also contemplated the prospect of higher cash rates and bond yields further into the future, following stronger-than-expected US GDP growth and a higher-than-anticipated Australian inflation print for the September quarter. Major global central banks including the RBA kept rates on hold during the month.

 

The Australian share market declined (-3.8%) in October and the Technology and Healthcare sectors were the worst performers while the Utilities sector was the only one to post gains. A-REITs plunged (-5.7%) for the month. Currency-hedged international equities fell (-2.7%) and currency-unhedged international equities returned (-1.0%) as the Australian dollar lost ground against both the US Dollar and Euro.

 

The Australian 10-year government bond yield jumped by 0.44% to 4.93% pa and the 2-year government bond yield jumped 0.38% to 4.46%. The US 10-year government bond yield rose by 0.36% to close at 4.93% and the 2-year government bond rose by 0.04% to close at 5.09%

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.