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Market Commentary - July Glenmore Asset Management July 2025 Global equity markets had a solid month. In the US, the S&P 500 and NASDAQ increased +2.2% and +3.7%, respectively, whilst in the UK, the FTSE rose +4.2%. Domestically, the AllOrdinaries Accumulation index was broadly in-line with its US peers, rising +2.6%. This was led by the Healthcare (+8.7%) and Resources sectors (+4.5%), which benefitted from a rotation out of Banks (-1.3%), following a period of strong outperformance. Investor sentiment during the month was buoyed by the announcement of several US related trade deals, including with the European Union, Japan and South Korea, amongst others. As it stands, the "effective tariff rate" from the US is set to rise from an average of ~2% in 2024 to ~16%. Whilst the impact of this remains unclear, investors will undoubtedly be keeping an eye on economic data over the coming months. Closer to home, June quarter 2025 domestic inflation figures came in slightly weaker than expected, with the trimmed mean CPI (the RBA's preferred measure of underlying inflation) declining to 2.7% (YoY) from 2.9% in 1Q-2025. As a result, financial markets now expect to the RBA to cut the cash rate by 25bps during the upcoming 12th August meeting. In bond markets, the US 10-year bond yield rose +15 basis points (bp) to 4.37%, whilst its Australian counterpart rose +10bp to close at 4.26%. The Australian dollar was weaker in June, closing at US$0.643, down 1.6 cents. Funds operated by this manager: |
