In spite of the generally positive mood investors remained concerned by the
ongoing spread of the Delta variant of Covid-19, and whether it could derail the
recovery in major economies.
It became apparent that lockdowns in large parts of Australia would persist for longer than initially anticipated. As a result, economists downgraded economic growth forecasts and pushed back their expectations of when the Reserve Bank of Australia might start to raise interest rates.
Geopolitical tensions remained in focus in June as renewed conflict in the Middle East disrupted oil supply routes and raised concerns about broader regional instability. Oil prices spiked as tensions rose and supply concerns mounted, though moderated after a ceasefire was called 12 days later. Brent closed June +5.8% higher at $67.61.
While the month began with constructive discussions and agreements between the US and some of its trading partners, uncertainty returned to the market after President Trump threatened to impose new tariffs on Europe and multiple large corporates such as Apple, Samsung and Mattel, and again near month-end as the Court of International Trade deemed the global tariffs to be “contrary to law.”
