Market Update – May 2015

• The RBA cut the overnight cash rate by 0.25% during the May board meeting. The rate was kept at 2.00% in June.
• The 3 Month Bank Bill Swap Rate was marginally down by -0.01% in May while the 10 Year Australian Bond Rate increased by 0.10%.
• Australian Shares had an overall positive month, with the All Ordinaries Index increasing by 0.02%.
• AREITs had a strong month, gaining 2.73% in May.
• Global equities posted positive results in most regions, with the TOPIX Japan Index rising 5.08% to be the strongest performer.
• Chinese shares fell by -2.52% in May following a strong rally in the previous month.
• Commodity prices rose by 0.85% over the month, measured by the US$ CRB Spot Commodity Price Index. Gold, Oil and Iron Ore prices increased by 0.79%, 1.12% and 1.72% respectively.
• The Australian Dollar depreciated against most major currencies in May. In particular, it fell by -3.98% against the US Dollar, -2.78% versus thethe Euro and -3.48% over the British Pound. The AUD recorded a 0.29% gain over the Japanese Yen, indicating a further fall in the Yen.
• The Australian Trade Weighted Index (TWI) fell by -2.45% over the month, indicating a decrease in Australia’s international competitiveness.
• The share market volatility fell both domestically and abroad, with the S&P/ASX 200 Volatility Index and the US VIX Volatility Index decreasing by -0.71% and -2.78% respectively.

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Source:       Zenith Investment Partner