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Australian economy, Global economy, news, Equity, Fixed Income, SMSF
Stock markets were reasonably stable in the early part of the month but then weakened as geopolitical tensions increased, US economic activity was softer, and French Presidential elections surprised. However once French elections seemed more certain and US companies reported positive earnings, markets rallied. European stocks lifted as the prospect of a Eurozone breakup diminished.
UK Prime Minister Theresa May calls a snap election to garner support and mandate for Brexit negotiations.
Australian stocks were weighed by the Materials sector as iron ore prices fell by nearly 20%, to finish around $67.50 US/T. The Telco sector was by far the worst performing to be down nearly 10% on the prospect of a new competitor in the Australian mobile sector. Telstra fell 7.5% and TPG -16% on the news (& TPG Capital raising).
Bonds bounced around reacting to the macro news, but ended up producing a positive return.
Australian house prices continued their northward trajectory, with latest data showing house price growth at their strongest level in 7 years at +12.9% y/y.
