16 Jul 2025 - Glenmore Asset Management - Market Commentary

Globally equity markets rallied strongly in June. In the US, the S&P 500 increased +5.0%, the Nasdaq rose +6.6%, whilst in the UK, the FTSE fell -0.1%. Domestically, the All-Ordinaries Accumulation index underperformed its US peers, rising +1.4%. On the ASX, the top performing sector was energy, as the Middle East conflict pushed up energy prices. The worst performing sector was gold, as investors took profits following a 6-12 month period of strong outperformance. In global news, the conflict in the Middle East continued to create volatility in financial markets, with the Brent crude oil price rising +6% in June. In Australia, the key piece of news was a lower than expected inflation data point which has resulted in expectations of a 25 basis point reduction in the official cash rate (currently 3.85%) in July.

In bond markets, the US 10-year bond yield fell -19 basis points (bp) to 4.25%, whilst its Australian counterpart declined -11bp to close at 4.16%. The Australian dollar was stronger in June, closing at US$0.658, up 1.5 cents.