Markets summary - September 2023

Share markets declined in September as investors digested the potential inflationary implications of a surging crude oil price (+6.9% for the month), along with brinkmanship from US lawmakers regarding the Government’s funding bill. The European Central Bank raised rates by 0.25% to 4.0% while other major global central banks including the Reserve Bank of Australia kept rates on hold during the month.

The Australian share market declined (-2.9%) in September: the Healthcare and Technology sectors slumped while Energy stocks saw gains, buoyed by higher oil prices. A-REITs declined sharply (-8.7%) for the month. Currency-hedged international equities fell (-3.8%) and currency-unhedged international equities returned (-4.0%) as the Australian dollar gained against the Euro and Yen but fell against the US dollar.

The Australian 10-year government bond yield jumped by 0.46% to 4.49% pa and the 2-year government bond yield jumped 0.29% to 4.08%. The US 10-year government bond yield rose by 0.46% to close at 4.57% and the 2-year government bond rose by 0.18% to close at 5.04%

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.