June was a relatively subdued month for investment markets. The S&P/ASX 200 Index rose 0.5% to close at 8,778.70 points, while the Australian dollar weakened to around USD 0.69. The Reserve Bank of Australia also kept the cash rate on hold at 4.35% per annum.

Global share market performance varied by region. The US S&P 500 fell by 1.1%, the UK FTSE 100 rose by 0.8%, Japan’s Nikkei gained 5.6%, and Hong Kong’s Hang Seng Index declined by 9.1%.

Investment markets continued their recovery in May. The S&P ASX 200 rose 0.8% to close at 8,731 points, while the Australian dollar weakened slightly by 0.3%. The Reserve Bank of Australia also increased interest rates again, taking the cash rate to 4.35% per annum, a level not seen in over a decade and continuing to pressure borrowing capacity.

Global markets delivered solid, but uneven, returns. The US market (S&P 500) gained 5.1%, while Japan surged 11.9%. The UK rose a modest 0.3%, and Hong Kong declined by 2.2%. The resilience in US markets follows a strong April, reflecting improved investor sentiment as geopolitical concerns eased.

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..