With inflation remaining well above target in key regions, investors continued to price in the likelihood of further increases in
interest rates. This exerted further upward pressure on bond yields and resulted in negative returns from fixed income.
Share markets made solid progress in the final month of the FY23 year. The MSCI World Index added 5.7% in June, extending gains to more than 18% over the past 12 months. Currency movements diluted performance for Australian investors over the month, but lifted rolling annual returns to more than 23%.
Australian shares fared well in June too. The S&P/ASX 200 Index returned 1.8% over the month, but was little changed in the FY23 year as
a whole.
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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.
