Life Plan Client eNewsletter July 2017

With the close of the financial year, it’s time to review what’s happened in investment markets. MLC’s portfolio specialist John Owen provided this comprehensive review.

2017 financial year in review  -

Download the 2017 financial year in review here (PDF)

In this update, Bob Cunneen, Senior Economist talks to Jason Hazell, Head of Investment Communications, about key events driving markets during June.

They discuss:

• Australian shares posting a mild monthly performance

• European share markets falling sharply in June

• Asian shares proving resilient, and

• the major themes driving markets continuing to be President Trump's bold stimulus promises and signals from the US and European central banks that interest rates are set to rise.

Highlights:

• In June markets were influenced by political developments in the UK and US and more hawkish commentary from central bankers suggesting that soft inflation is only transitory.

• European equities lost 2.8% in June after two Italian banks were bailed out by the Italian government and ECB President Draghi hinted at tighter monetary policy.

• The UK election resulted in a hung parliament creating additional uncertainty as to how the Brexit negotiations will unfold.

• US technology stocks, which had enjoyed solid price rises, gave back some of their recent gains with the NASDAQ Composite Index down 0.9% in June.

• Chinese activity indicators were a little softer but still remain at strong levels.

• Australian employment data was stronger in the past month and the unemployment rate fell to the lowest rate since February 2013.

If you have any questions regarding this report or would like to discuss your portfolio, please contact me directly.

Read full July market update report  >>