It was another positive month for the Australian share market, with the S&P/ASX 200 Index gaining by 1.3% to close the month of June at 8,542.3 points. For the 2025 financial year, the S&P/ASX 200 Index gained 10.2% in value (excluding dividends).
The Australian dollar gained by 2.5% over the month of June, with 1 Australian Dollar currently buying 65.9 United States cents. With the recent rally in the Australian Dollar, for the 2025 financial year, the Australian Dollar only declined 1.3% against the United States dollar.
The Reserve Bank of Australia (RBA) board did not meet in June. However, the monthly Consumer Price Index report released in June revealed a large drop in trimmed-mean annual inflation from 2.8% to 2.4%. Consequently, markets are pricing-in a rate cut with near-certainty when the RBA board meet later this month as evidenced by a fall in the Australia 2-Year Bond Yield as shown in the chart below.
Source: tradingeconomics.com
To global markets, there was a rebound in the second half of the month following a Middle East ceasefire and lingering hopes of United States’ interest rate cuts later this year. Most notably, the United States S&P500 Index touched a new record high, fully unwinding the tariff-related slump earlier this year.
For the month of June, the United States S&P500 Index gained by 5.0%, the London FTSE Index fell by 0.1%, the Japan Nikkei 225 Index gained by 6.6%, and the Hong Kong Hang Seng Index gained by 3.4%.
As we enter the new financial year, investment markets have proven to be remarkably resilient despite the recent headwinds of United States tariffs and conflict in the Middle East. While these risks remain, given the speed of turnaround in markets in recent times, sticking with your investment strategy through any cycle seems as important as ever.
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This article is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation, and investment objectives.