Every month, I will be publishing a monthly global markets review. The aim of my markets review is to provide investors and their advisers a concise summary of the performance and drivers of the major forces within the global financial markets, along with my thoughts on the potential outlook in each major asset class. Hope you enjoy it!
Developed and emerging market equities continued to rise in August, helped by a rally in bond yields which was due to heightened expectations that global monetary conditions would remain very accommodative for some time. After a solid performance in July, however, the Australian equity market underperformed, with flat performance recorded during August – dragged down by weakness in resources stocks a contributor to which was weakening iron ore prices. Reflecting the ongoing yield chase by investors and declining bond yields, the Australian listed property sector rose further. Commodity prices continued to ease, though not as rapidly as in July, with gold prices steady.