September was a weaker month for investment markets as investors digested another increase in Australian interest rates and ongoing concerns that inflation may take longer than expected to return to target levels.

The S&P/ASX 200 Index fell 3.2% during the month, closing at 8,789 points. International markets were also generally softer, with the US S&P 500 falling 0.5%, the UK FTSE 100 declining 2.0% and Hong Kong's Hang Seng Index falling 3.7%. Japan's Nikkei Index was one of the few major markets to finish higher, rising 0.7%.

Inflation has once again become the dominant theme for investors, consumers and policymakers as attention turns to the Reserve Bank of Australia's September meeting. While the Reserve Bank left the cash rate unchanged at 4.35% p.a. during its August meeting, recent inflation data has increased speculation that further rate increases may be required in coming months.

Australian share markets delivered a modest gain during August, with the S&P/ASX 200 Index rising 1.1% over the month to close at 9,076 points.

Global investment markets delivered mixed results over the month of July, while Australian shares continued their positive momentum. The S&P/ASX 200 Index rose 2.3% to close at 8,976.8 points. The Australian dollar also strengthened during the month, rising 1.6% against the US dollar to approximately USD 0.70.

Overseas markets delivered mixed results. The US S&P 500 was broadly unchanged, falling 0.1%, while the UK FTSE 100 rose 3.5%. Japan's Nikkei Index declined 8.1%, while Hong Kong's Hang Seng Index recorded a strong gain of 13.1%.