Markets shrugged off the Brexit risks, and advanced leaving Australian shares 6.3% higher.

• Australia recorded another benign inflation print of 1.5% p.a. which left the door open for the RBA to cut interest rates. Australian 10 year bond yields continued to fall, ending around 1.8%.
• European shares had their biggest monthly gain, closing 4.6% higher. Meanwhile the Eurozone growth numbers showed a fall to 0.3% for the quarter, with France recording 0% after several terror attacks. Big spending American and Japanese tourists are cancelling holidays in preference for safer locations. Tourism accounts for around 10% of the Eurozone’s GDP.
• The US Federal Open Markets Committee (FOMC) met and left rates unchanged. They noted the US economy continues to grow at a moderate pace, and jobs growth is strong. Historical measures such as GDP showed a weaker than expected result of growth at 1.2% annualised. US stocks added 3.7%.
• The Bank of Japan met and showed they are running out of monetary policy bullets. They did not chose to move further into negative interest rate policy, instead doubled their quantitative easing measures in purchasing exchange traded funds (ETFs). Prime Minister Abe is expected to announce a monstrous fiscal stimulus of $265b which is 40% higher than original estimates. The Japanese Yen ignored both measures, and continued to strengthen.