Monthly Highlights:
- Global share markets consolidated in June, with the US-Iran peace agreement helping to reduce geopolitical uncertainty but failing to spark a meaningful equity rally. Markets had already looked through much of the conflict, aside from its drag on energy stocks. US shares softened as investors took profits from technology names after a strong run, while property and infrastructure enjoyed a steadier month as interest-rate sensitive assets found firmer footing.
- Australian shares edged higher over the month, with healthcare, consumer staples and consumer discretionary stocks doing much of the heavy lifting. This helped offset a sharp fall in energy, as easing oil prices took some heat out of the sector. Materials were also weaker as commodity prices softened, while smaller companies lagged larger peers, suggesting the market advance remained relatively narrow rather than broad-based.
- June exposed a wider split across international markets, with Europe setting the pace while the US lost momentum. The pullback in US technology stocks looked more like a pause after a powerful run than a broader retreat from risk. Japan also finished in positive territory, while China remained under pressure, reflecting ongoing caution toward its growth outlook. A weaker Australian dollar helped cushion offshore returns for unhedged investments.
- Australian and global fixed interest markets delivered positive returns, with Australian bonds benefiting as local yields moved lower. The fall in domestic yields supported bond prices, while global bonds also produced a modest gain despite US yields edging higher. Credit markets remained calm, with tight spreads suggesting investors remain comfortable with corporate fundamentals despite lingering uncertainty around inflation, growth and policy settings.
