Heart Monthly Market Report for May 2016. Below are the key points for the month:
The RBA cut the overnight cash rate to 1.75% from 2.00% at the May board meeting but held firm at the June meeting.
In fixed income, the 3 Month Bank Bill Swap Rate fell by -0.10%, while the 10 Year Australian Bond Yield fell by 0.20% in May.
Corporate debt spreads, as measured by the iTraxx Australian Index, fell to 126.09 over the month from the previous reading of 131.76.
Australian shares rose further over the month, with the All Ordinaries Index and the S&P/ASX 200 Index increasing by 2.48% and 2.41%, respectively.
Domestic listed property followed the broader market gain, returning 2.68% over the month.
Regional equity markets ended higher in most regions, with the TOPIX (Japan) Index gaining 2.93% to be the best performer, and the Hang Seng (Hong Kong) Index declining by -1.20% to be the worst performer.
Global commodity prices ended the month lower, losing -1.30%, as measured by the US$ CRB Spot Commodity Index. Gold and Iron Ore prices were sharply lower, declining -6.04% and -20.93%, respectively, in US Dollar terms.
The Australian Dollar fell heavily against most currencies in May, falling by -5.40% against the US Dollar, -3.20% against the Euro, -5.57% versus the British Pound and -1.90% against the Japanese Yen.
The Australian Trade Weighted Index (TWI) fell by -3.29% over the month, ending April at 61.70.
· Share market volatility fell both domestically (-1.51%) and in the US (-1.23%).