The Australian share market started the new financial year strongly, gaining 4.5% to close July at 5,623 points. The good news may be short-lived however, with the US share market experiencing it's biggest daily fall since February overnight.
US stocks were sharply lower in Thursday trading as investors weighed disappointing earnings and Argentina's default, while considering the possibility of an earlier-than-expected rise in US interest rates.
Profit taking was evident in the Australian share market in the month of June, with the All Ordinaries Index falling 1.7% to close the month at 5,382 points. Nevertheless, it was a strong financial year for Australian shares, with the overall market gaining 12.7% for the full financial year.
Global share markets were mixed in June despite escalating violence in Iraq, with the US Dow Jones Index gaining 0.7%, the London the FTSE falling 1.5%, the Hong Kong Hang Seng Index gaining 0.5% and the Japan Nikkei 225 Index gaining 3.6% for the month.
It was a month of consolidation for the Australian share market, with the All Ordinaries Index gaining 0.1% to close the month of May flat at 5,474 points. International markets were stronger with the US Dow Jones Index gaining 0.8%, the London FTSE gaining 1.0%, the Hong Kong Hang Seng Index gaining 4.3% and the Japan Nikkei 225 Index gaining 2.3%.
Interest rates again remained on hold, with the RBA cash rate at 2.50% per annum and expected to remain at this level for the foreseeable future. The Australian Dollar gained in May and is currently buying 93.11 US cents.
The Australian share market was stronger in April, with the All Ordinaries Index gaining by 1.3% to close at 5,471 points. In the US the Dow Jones Index gained 0.7%, in London the FTSE gained 2.8%, in Hong Kong the Hang Seng Index fell 0.1% and in Japan the Nikkei 225 Index fell 3.5% for the month.
The Australian share market was flat in March, with the All Ordinaries Index declining by 0.2% to close at 5,403 points. In the US the Dow Jones Index gained 0.8%, in London the FTSE fell 3.1%, in Hong Kong the Hang Seng Index fell 3.0% and in Japan the Nikkei 225 Index fell 0.1% for the month.
The flat performance came on the back of softening of the Chinese economic data, weak US economic data (primarily due to poor weather) and comments from Janet Yellan (in her first meeting as head of the US Federal Reserve) suggesting a rise in US interest rates earlier than expected.
The Australian share market performed strongly in February, with the All Ordinaries Index gaining 4.0% to close the month at 5,415 points. The stellar performance saw the Australian market recover its January losses, with the All Ordinaries Index closing at its highest level for 2014.
Key international share markets were also generally strong in February. The US Dow Jones Index gained 4.0%, in London the FTSE gained 4.6% and in Hong Kong the Hang Seng Index gained 3.6%. In Japan the Nikkei 225 Index bucked the trend and fell 0.5% for the month.
It was a poor start to 2014 for investment markets, as worries about the strength of emerging market economies and the global impact of the US Federal Reserve winding back of its economic stimulus program weighed heavily.
The Australian share market performed well in context of the global share market performance, falling 2.8% to close January at 5,201.1 points. In the US the Dow Jones Index fell 5.3%, in London the FTSE fell 3.5%, in Hong Kong the Hang Seng Index fell 5.5% and in Japan the Nikkei 225 Index fell 5.5% for the month of January.
The Australian share market finished 2013 in a somewhat subdued fashion gaining 0.7% in the month of December to close at 5,353.10 points. Nevertheless, 2013 was a stellar year for the Australian share market recording a 14.8% gain for the year (far exceeding my expectations from this time last year).
Global shares were once again mixed in December with the Dow Jones Index gaining 3.0%, the FTSE gaining 1.5%, the Hang Seng falling 2.4% and the Nikkei 225 gaining 4.3% for the month. The chart below shows the returns of key global share markets through calendar 2013.
The Australian share market ended four months of consecutive gains, falling 2.0% in the month of November, closing at 5,314.30 points. The pullback was expected, with the overall market up by approximately 14% for the 2013 calendar year-to-date.
Global shares were mixed in November with the Dow Jones Index gaining 3.5%, the FTSE falling 1.2%, the Hang Seng gaining 2.9% and the Nikkei 225 continuing its volatile trend - gaining 9.3% for the month.
The Australian share market had another stellar month, increasing 3.9% in October to close at 5,420.3 points. The positive result came as investors breathed a collective “sigh of relief” after US Congress agreed to an eleventh hour temporary increase to US Government “debt ceiling”.
Global shares also performed well in October, with the Dow Jones Index gaining 2.8%, the FTSE gaining 4.2% and the Hang Seng gaining 1.5%. The Nikkei 225 bucked the trend, falling 0.9% for the month after gaining a whooping 8.0% in September.