- The RBA kept the overnight cash rate at 2.00% at both July and August meetings.
- In fixed income, the 3 Month Bank Bill Swap Rate and the 10 Year Australian Bond Rate fell by -0.02% and -0.26%, respectively, over the month.
- Australian Shares posted strong returns, with the All Ordinaries Index and the S&P/ASX 200 Index gaining 4.23% and 4.40%, respectively, over the month.
- AREITs experienced stronger gains than the broader equity market, with the ASX 300 Property Index increasing by 5.64%.
- Regional equity markets around the globe under-performed domestic equities, with the Hong Kong Hang Seng Index the worst performer, falling by -6.15%,.
- The UK FTSE 100 Index and The European STOXX 50 Index gained 2.69% and 3.95%, respectively, in July to be the best performing regional markets.
- Commodity prices fell, as indicated by -3.73% decline in the US$ CRB Spot Commodity Index. Oil prices were hit the hardest, falling by -20.77%, as measured by the US$ Texas Crude Oil Price Index.
- The Australian Dollar depreciated against most major currencies. In particular, it fell by -5.03% against the US Dollar,-2.85% against the Euro, -4.34% versus the British Pound and -3.66% against the Japanese Yen.
- The Australian Trade Weighted Index (TWI) fell from 63.80 to 61.40 points over the month, indicating a drop in Australia’s international competitiveness.
- Share market volatility fell both domestically and abroad, with the S&P/ASX 200 Volatility Index and the US VIX Volatility Index decreasing by -6.11% and -5.35%, respectively.
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Source: Zenith Investment Partner
23rd-August-2015 |