Market Wrap – June 2018 - Newcastle Financial Planning Group
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Market Wrap – June 2018

Market Wrap – June 2018

Post Series: Market Wrap

A Month Of Two Halves

  • Global shares rose 0.4% in unhedged terms (1.3% hedged) in May as a strong start on the back of better-than-expected economic data and easing US-Chinese trade tensions softened a mixed second half as President Trump cancelled talks with North Korea, and as political uncertainty heightened in Italy and Spain.
  • Over May, the US S&P 500 index increased by 2.2%. In Europe, the French CAC40 fell -2.2% while UK’s FTSE100 rose 2.3%. The major bourses in Asia were lower.
  • Threat of Turkey’s President taking over its central bank spooked markets about emerging markets. The region was down -3.8%.
  • Minutes from the US FOMC’s May meeting revealed that officials are likely on track to raise rates in June. It also suggested the Fed may be willing to permit inflation to run higher than its 2% target.
  • US 10-year Treasury bond yields exceeded 3% during May as prospects of higher inflation dimmed the appeal of longer-term debts. However, yields fell sharply in the final days of the month as troubles in Italy saw investors flee to the safety of US Treasuries.
  • Australian shares rose, up by 1.2%. The housing market continued to rebalance as foreign buyer demand slows and bank lending standards tighten.

FOMC = Federal Open Market Committee.

Major Asset Class Performance (%)


Source: JP Morgan & ANZ Wealth, 31 May 2018.
Indices: Australian Shares – S&P / ASX 300 Accumulation, Global Shares (hedged/unhedged) – MSCI World ex Australia Net, Global Emerging Markets – MSCI Emerging Free Net in AUD (unhedged), Global Small Companies (unhedged) – MSCI World Small Cap ex Australia, Global Listed Property – FTSE EPRA/NAREIT Developed Rental Index ex Australia (hedged), Cash – Bloomberg Bank Bill, Australian Fixed Income – Bloomberg AusBond Composite 0+ Yr Index, International Fixed Income – Barclays Global Aggregate Bond Index (hedged).
Please note: Past performance is not indicative of future performance.

Currency


Source: Bloomberg & ANZ Wealth, 31 May 2018. All foreign exchange rates are rounded to two decimal places where appropriate.
Please note: Past performance is not indicative of future performance.

Disclaimer: This information is current as at 5 June 2018 but is subject to change. This information is issued by OnePath Funds Management Limited (OFM) ABN 21 003 002 800 AFSL 238342. OFM is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 but is not a bank. The information is general in nature and does not take into account a potential investor’s personal needs, objectives and financial circumstances. This information is not to be construed as investment or financial product advice, and should not be relied upon as a substitute for professional advice. Before acting on this information, potential investors should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Potential investors should read the relevant Product Disclosure Statement (PDS) available at onepath.com.au and consider whether the particular product is right for them. Although all the information in this document is obtained in good faith from sources believed to be reliable no representation of warranty, express or implied is made as to its accuracy or completeness. Whilst care has been taken in preparing this material, ANZ and its related entities do not warrant or represent that the information, opinions or conclusions contained in this document (“information”) are accurate. To the extent permitted by law, ANZ and its related entities do not accept any liability from the use of the information. Past performance is not indicative of future performance. The value of investments may rise or fall and the repayment of subscribed capital is not guaranteed. RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429.

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