Monthly Market Report for June 2017. Below are the key points for the month:
- The RBA kept the overnight cash rate at 1.50% at the June meeting. The rate was also left unchanged at the July board meeting.
- In fixed income, the 3 Month Bank Bill Swap Rate and the 10 Year Australian Bond Rate rose by 0.08% and 0.21%, respectively, in June.
- Spreads on Australian corporate debt fell in June, as indicated by the iTraxx Australian Index falling -1.93 points to 83.76.
- Australian shares were roughly flat in June, with the All Ordinaries Index gaining 0.05%, and the S&P/ASX 200 Index falling by -0.05%, over the month. Domestic listed property underperformed the broader share market, falling by -6.06% over the month.
- Global equity markets were mixed in June. The TOPIX (Japan) Index gained 2.78% to be the best performing market, while the UK fell -2.76% to be the worst performing market in June.
- Gold and oil prices fell by -1.93% and -2.59%, respectively, in June. The Iron Ore price recovered some of its recent losses, gaining 9.48% to end June at 63.50. The overall CRB Spot Commodity Index rose by 2.90% in US Dollar terms.
- The Australian Dollar rose against most major currencies in June, 3.25% against the US Dollar, 0.88% against the Euro, 1.58% against the British Pound and 4.30% against the Japanese Yen.
- The Australian Trade Weighted Index (TWI) rose by 2.66% over the month, ending June at 65.50.
Share market volatility rose both domestically (1.53%) and in the US (0.77%).