Hopes for a resolution to the conflict in the Middle East helped stabilise global investment markets in April. In Australia, the S&P/ASX 200 Index rose 2.2% over the month to close at 8,665.8 points.

The Australian dollar also strengthened, rising 4.5% to around USD 0.72. The Reserve Bank of Australia did not meet during April, however market expectations remain that interest rates could stay higher for longer given ongoing inflationary pressures..

Ongoing conflict in the Middle East unsettled global investment markets in March, leading to a broad sell‑off across share markets. In Australia, the S&P/ASX 200 Index fell 7.8% to close at 8,481.8 points, marking its largest monthly decline since June 2022.

The Australian dollar weakened by 3.1% over the month to around USD 0.69. At the same time, inflation pressures remained higher than expected, prompting the Reserve Bank of Australia (RBA) to increase the cash rate by a further 0.25% per annum to 4.10% per annum.

The Australian share market reached new record highs in February, with the S&P/ASX 200 Index gaining 3.7% to close at 9,198.6 points. The Australian dollar strengthened by 1.7%, now trading at 71.2 US cents.  The Reserve Bank of Australia (RBA) responded to higher-than-expected inflation by increasing the target cash rate by 0.25% per annum, with the Cash Rate now at 3.85% per annum.