A snapshot of the key points for June 2016:
- The RBA kept the overnight cash rate at 1.75% at both the June and July board meetings.
- In fixed income, the 3 Month Bank Bill Swap Rate fell by -0.02%, while the 10 Year Australian Bond Yield fell by -0.30% in June.
- Corporate debt spreads, as measured by the iTraxx Australian Index, was essentially flat over the month, falling from the previous reading of 126.09 to 126.03.
- Australian shares ended in the negative territory over the month, with the All Ordinaries Index and the S&P/ASX 200 Index declining by -2.52% and -2.70%, respectively.
- Domestic listed property outperformed the broader share market, gaining 2.06% over the month.
- On a regional basis, Japan was the worst performer, with the TOPIX Index falling by -9.71%. Europe was also down, with the STOXX 50 Index declining by -5.06%. Surprisingly, the FTSE 100 (UK) Index was the best performer, rising 4.39% over the month, despite an increased level of market volatility following the referendum in late June.
- Global commodity prices ended the month slightly higher, rising 0.21%, as measured by the US$ CRB Spot Commodity Index. Gold and Iron Ore prices experienced the largest gains, adding 8.79% and 6.86%, respectively, in US Dollar terms.
- The Australian Dollar rose against most currencies in June, gaining 2.54% over the US Dollar, 2.97% against the Euro, 12.42% versus the British Pound. The AUD fell by -5.41% against the Japanese Yen.
- The Australian Trade Weighted Index (TWI) rose by 1.30% over the month, ending June at 62.50.
- Share market volatility rose both domestically (2.86%) and in the US (1.44%)
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Source: Zenith Investment Partners