• The cash rate cut flowed into the Australian bond market, with long term bond yields falling dramatically. The resulting downward movement meant a boost in investment returns for existing bond investments, which delivered a positive return through May.
• In the Australian Share market, stocks rallied on the back of the rate cut, largely due to the defensive and interest rate sensitive sectors of Healthcare, IT, Consumer Discretionary and telecommunications. Globally, shares were also higher in Australian terms, largely due to the depreciation of the Australian Dollar against most major currencies, but especially against the US Dollar.
• Listed property also rose during the month, albeit less than Australian shares. The low interest rate environment has remained a positive for the sector.
• Commodity markets retreated during the month, with iron ore the biggest loser, falling 24.3%, largely due to the Chinese Government clamping down on speculative futures trading on the Dalian Commodity Exchange. Oil however bucked the trend of the other commodities and was higher through May, due to unplanned outages in Nigeria, Canada and Libya bringing some balance back to the demand/supply curve.
Altitude Financial Planning is a Corporate Authorised Representative of Altitude Financial Advisers Pty Ltd
ABN 95 617 419 959
AFSL 496178
The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.
