Australian equities were the best-performing major asset class in the month of June with the financials and resources sector pulling most of the weight, according to BetaShares.
According to BetaShares chief economist David Bassanese’s June 2018 Market Trends report, Australian equities returned 3.3 per cent last month, representing the highest-performing asset class.
The second-best performing asset class was Australian property at 2.2 per cent, followed by world currencies per Australian dollar at 1.7 per cent.
“In terms of relative momentum, the Australian and international equities were the two strongest performing asset classes at end-June, while gold and cash were the weakest,” the report said.
“Global equites in local currency (hedged) terms were flat, reflecting ongoing trade jitters and particular weakness in emerging markets. That said, reflecting a decline in the Australian dollar, global equities returned 1.6 per cent in [Australian dollar] terms.
“Bonds posted modest returns due to broadly steady interest rates, which also supported gains in listed property. [US dollar] strength and investor caution saw gold prices decline 3.5 per cent.”
According to the report, the financials sector “staged a comeback”, while the resources sector continued to perform strongly.
Small- and mid-cap stocks had also performed well relative to large caps, “though their relative performance has waned a little in recent months, perhaps reflecting broader investor nervousness,” the report added.
In a separate statement, S&P Dow Jones Indices index investment strategy senior associate Hamish Preston also noted the high performance of Australian equities.
“Although trade tensions weighed on global equity market sentiment throughout June, Australian equities finished the month in positive territory,” he said.
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