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Australian economy, Fixed Income, news, Global economy, Equity
The Australian stock market was one of the worst performing in major markets. The ASX200 shed almost 3%, with the Banking sector bearing most of the weight. Putting it in context, if you excluded the Banks, Aussie stocks would have risen 0.3%.
Banks sold off almost 10% in partial response to the new Bank Levy hidden in the 2017 Budget, as well as ANZ, NAB, & WBC all going ex-dividend and paying hefty dividends. It should be noted the sector actually added nearly 30% to the end of April, so one could argue there was potentially some profit taking in the mix. The Banks are now trading at PEs of around 12.8x, which is more in line with long term averages (12.1x).
Around the world, UK markets did well, lifting almost 5%. On a 12mth basis, UK markets are now up 25%... but that performance can mostly be explained the low start base (BREXIT vote last year).
Iron ore prices fell $9.50/t to $58. Oil was a fraction weaker at $50/b. The RBA left cash rates unchanged, and longer term interest rates drifted lower.
