News

Australian equities rallied this month but underperformed global markets over the quarter, despite reaching record highs driven by strong sectors like mining and banking. The Reserve Bank of Australia held the cash rate steady, adopting a neutral stance on future rate movements amid improving economic signs, including employment and housing market recovery.

In February 2024, Australian equities saw a modest increase with the ASX200 up by 0.8%, trailing behind global markets but maintaining a 10.6% growth over 12 months, driven by strong performances in IT, consumer discretionary sectors, and the Mid Cap segment.

In Australia, stocks rebounded in December but lagged globally for the year, with cautious rate cut expectations and subdued earnings. The Reserve Bank kept rates steady amidst high inflation. Growth was stagnant, impacted by higher rates and taxes.

In the US and developed markets, equities ended the year strongly, driven by a shift in Federal Reserve policy and declining bond yields, overcoming various economic challenges.

Emerging markets saw modest gains in December but underperformed compared to developed markets for the quarter.

In Australia, stocks rebounded in December but lagged globally for the year, with cautious rate cut expectations and subdued earnings. The Reserve Bank kept rates steady amidst high inflation. Growth was stagnant, impacted by higher rates and taxes. In the US and developed markets, equities ended the year strongly, driven by a shift in Federal Reserve policy and declining bond yields, overcoming various economic challenges. Emerging markets saw modest gains in December but underperformed compared to developed markets for the quarter.

The Australian equity market experienced a decline in October due to higher bond yields and a contraction in PE multiples, alongside a subdued earnings outlook projecting negative EPS growth over the next year. In international markets, global equity also saw a decrease in the same month, with bond yields on the rise and geopolitical tensions contributing to the uncertainty.

In Australia, the equity market faced losses in the month and quarter, with a subdued earnings outlook for the next 12 months, while the RBA refrained from raising interest rates. In the US and developed markets, global equity markets declined in September, mainly due to the surge in bond yields, shifting focus from economic resilience to higher Fed fund rate projections. In emerging markets, a decline occurred in September, driven by poor performance in China's equity market, where policy uncertainty and ailing property sectors contributed to a significant discount compared to global developed markets.

In August, the Australian equity market lagged behind global counterparts, with the Reserve Bank of Australia maintaining steady interest rates. Global equities faced challenges due to rising bond yields and declining US earnings. China's policy stimulus fell short, and emerging markets struggled amid trade uncertainties and weak economic data.

The Australian equity market slightly underperformed global equities once again, rising 2.9 per cent in the month, taking the year to date gain to 7.5 per cent.

Global equity markets experienced a mixed performance in June, with Australian equities rising only 1.8 per cent, lagging behind the global rally of 6.1 per cent.