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.
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.”
The investment market volatility that kicked off in March 2025 has felt like a punch, particularly for those in or nearing retirement.
