Renewed hopes that the United States Federal Reserve was close to a “pivot” on policy tightening (and that they would signal a slower pace of interest rate increases) sparked a rally in United States and Australian share market values in the month of October.
Continued hawkish actions from the United States Federal Reserve again weighed on global share and bond markets in September, along with an ill-judged very stimulatory United Kingdom budget not helping fragile global sentiment.
The Australian share market posted a small gain in the month of August, increasing by 0.7%, with the All-Ordinaries index closing at 7,226.1 points. The Australian Dollar fell by 2.2% in the month, with 1 Australian Dollar currently buying 68.4 United States cents.
The Australian share market recovered some of its recent losses in the month of July, gaining 6.3% for the month, with the All-Ordinaries index closing at 7,173.8 points. The Australian Dollar firmed 1.3%, with 1 Australian Dollar currently buying 69.9 United States cents.
The Australian share market closed sharply lower in June, falling 9.5% for the month, with the All-Ordinaries index closing at 6,745.5 points. With the June result, the Australian share market closed the financial year down 11.1%. The Australian Dollar also fell 3.9% for the month, with 1 Australian Dollar currently buying 69.0 United States cents.
The Australian share market closed the month of May down 3.5%, with the All Ordinaries index closing the month at 7,455.2 points. The Australian Dollar gained marginally by 1.1% for the month, with 1 Australian Dollar currently buying 71.8 United States cents.
United States shares closed out a dismal month (falling 2.8% on the last trading day of the month) as investors contended with a slew of headwinds, from central bank monetary tightening, rising interest rates, persistent inflation, COVID case spikes in China and the ongoing war in Ukraine. Added to this, on the domestic front, is the Federal Election which is due to be held on the 21st of May.
Rising commodity prices provided the base for a recovery in the Australian share market in the month of March. The All-Ordinaries index closed the month 6.4% higher at 7,232 points, and has now recovered all losses from earlier in the year.
The Australian Dollar continued to strengthen, gaining by 3.1% for the month with 1 Australian Dollar currently buying 75 United States cents.
Russia’s invasion of Ukraine has added another dimension to a volatile start to equity markets in 2022. For the month of February, the All-Ordinaries index closed the month 0.8% higher at 7,323.2 points. The Australian Dollar gained by 2.7% for the month with 1 Australian Dollar currently buying 72.63 United States cents.
A higher-than-expected inflation result both domestically and in the United States, coupled with rising bond yields, sent the Australian share market into sharp decline in the month of January. The All-Ordinaries index closed the month 6.6% lower at 7,268.3 points.