April Snapshot
Global share markets continued to rise robustly in March, driven by improving growth figures from the US and a dovish central bank. European share markets were particularly strong, as economic data from service industries showed signs of returning to expansionary levels.
Australian share markets also performed strongly, rising for the fifth consecutive month and yielding a 3.3% return over the month. However, our domestic market has trailed the global market this year, trading at valuations above historical averages, with earnings remaining subdued.
Bond indices generally advanced as interest rates remained stable and credit spreads narrowed. Despite the US Federal Reserve's supportive rhetoric, there is a short-term risk that rate cuts may be delayed further, potentially leading to an increase in government bond yields.
