Key Point for June 2014
- The RBA held the overnight cash rate steady at 2.50% in June as expected. The rate was also left unchanged during the July sitting.
- Yields on fixed income securities fell further over the month, with the 3 Month Bank Bill Swap Rate and the 10 Year Australian Bond Rate decreasing by -0.05% and -0.12% respectively.
- Australian Shares had a poor month, with the All Ordinaries Price Index and the S&P/ASX 200 Price Index declining by -1.68% and -1.78% respectively.
- Australian Listed Property outperformed the broader domestic equities market, with the S&P/ASX 300 Property Price Index adding 0.60% over the month.
- Many of the major global equities markets recorded positive returns in June. While the US and Japan led gains over the month, the UK and European shares underperformed, decreasing by -1.47% and -0.69% respectively.
- Gold prices jumped by 6.21% over the month, while oil prices expanded by 3.00% (both measured in USD). However the overall US$ CRB Spot Commodity Price Index fell by -0.15% in the past month.
- The Australian Dollar continued to appreciate against most of the major currencies. In particular, it increased by 1.22% against the US Dollar, 0.79% versus the Euro and 0.74% against the Japanese Yen. The Aussie Dollar depreciated by -0.85% over the British Pound.
- The Australian Trade Weighted Index (TWI) rose by 0.70% in June, indicating a further increase in Australia’s international competitiveness.
- US equity market volatility increased by 0.17% for the month, ending the month priced at 11.57%, as measured by the S&P VIX Index.
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Source: Zenith Investment Partners
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