Market Wrap Monthly Update
- Global stocks in May fell for the first time in five months after China-US trade talks unexpectedly broke down, reports pointed to a slowing in the US economy and political uncertainty rose in the Eurozone.
- Australian stocks, however, rallied on the surprise re-election of the Liberal National coalition and after the Reserve Bank of Australia hinted it would cut the cash rate to a fresh record low.
- A drop in the Australian dollar reduced losses for those who have unhedged investments in global equities.
- During the month, 10 of the 11 sectors slid in US-dollar terms. IT (-8.4%) fell the most while real estate (+0.2%) rose.
- The Morgan Stanley Capital International (MSCI) World Index fell 5.8% in US dollars and 4.3% in Australian currency.