Global stocks had a better month after a weak March. The US/China trade war saw China retaliate with 128 US goods being slapped with a 25% tariff. Chinese stocks weakened 2.7%.

Global bond yields continued to move higher, with US Treasuries touching 3% - a level well and truly above Australia’s 2.79%. The stronger interest rates helped support the USD, which saw the AUDUSD exchange rate fall a bit over 1.2c.

The Reserve Bank left interest rates at 1.5% as expected, with Governor Lowe expecting growth to be around 2.7% and inflation just under the 2% minimum band. Lowe said, “Inflation is likely to remain low for some time, reflecting low growth in labour costs and strong competition in retailing."

Aussie stocks found a bid lifting a solid 3.9%. The Energy sector (+10.8%) and Materials (+7.6%) did most of the heavy lifting on the back of stronger commodity prices. The Healthcare sector came a close third with CSL having another solid run and Healthscope getting a takeover offer, which saw it rally some 20% in the month. AMP collapsed almost 20% after admitting they lied to ASIC in the Royal Banking Commission. 

Iron ore rallied $2/t to $67, Oil lifted almost $5 to $75/bbl, and gold weakened $10.65 to $1313.