64 Jolimont Street, East Melbourne VIC 3002

Financial Planning News

Market Update - July 2016

 

See below for key points in this update and the report itself.

     

 

  • The RBA kept the overnight cash rate at 1.75% in July but cut to 1.50% during the August board meeting. 
  • In fixed income, the 3 Month Bank Bill Swap Rate and the 10 Year Australian Bond Rate fell by -0.05% and -0.11%, respectively, in July.
  • Spreads on Australian corporate debt fell over the month, as indicated by -16.36-point decline over the month of the iTraxx Australian Index to 109.67. 
  • Australian shares rallied over the month, with the All Ordinaries Index and the S&P/ASX 200 Index increasing by 6.28% and 6.29%, respectively. 
  • Domestic listed property performed in line with the broader share market, gaining 5.35% over the month.
  • Global equities experienced strong recoveries in July, with all regional markets participating. Japan added 6.17% to be the best performer, as measured by the TOPIX Japan Index. 
  • Global commodity prices ended the month -1.16% lower, as measured by the US$ CRB Spot Commodity Index. The oil price had its largest fall in months, declining by -13.93% for the month. Gold and Iron Ore prices continued to rise, adding 2.12% and 11.01%, respectively, in US Dollar terms. 
  • The Australian Dollar rose further against most currencies in July, gaining 1.29% against the US Dollar, 1.36% against the Euro, 2.87% against the British Pound and 2.24% versus the Japanese Yen.
  • The Australian Trade Weighted Index (TWI) rose by 1.44% over the month, ending July at 63.40.
  • Share market volatility fell both domestically (-5.18%) and in the US (-3.76%).

 

Please click on the following link to gain access to this resource.

Click here to view the 31st July 2016 Market Report
 

 Source:       Zenith Investment Partners



W Marshall & Associates 64 Jolimont Street, East Melbourne VIC 3002

Important: This is not advice. Clients should not act solely on the basis of the material contained in this Commentary. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before taking any action. The Commentary is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.