Market Update

June 2018


This month’s Market Watch key points include:

Global stocks in June fell for the first time in three months as European and Chinese threats to retaliate against US tariffs heightened the prospect of a global trade war. Germany’s coalition government threatened to collapse, and higher US interest rates and a rising US dollar hampered emerging markets. The decline was slight, however, as economic reports pointed to the US economy expanding over the second quarter. A drop in the Australian dollar turned losses into gains for those who have unhedged investments in global equities. During the month, only four of the 11 sectors fell in US-dollar terms. Industrials (-2.7%) and financials (-1.9%) fell most while consumer staples (+2.4%) was the best performer. The Morgan Stanley Capital International (MSCI) World Index fell 0.1% in US dollars while the index rose 2.4% in Australian currency