August’s Performance Overview
- August proved to be one of the most volatile months for equity markets in recent memory, reflecting an increasing lack of confidence in governments being able to orchestrate sustainable recovery initiatives from their current fiscal positions.
- The continued debate around the US debt ceiling, subsequent downgrading of US Bonds and lack of consensus on how to deal with European sovereign debt; highlighted the macro headwinds.
- Equity markets were weak with bonds and gold strong.
- The Australian equity market was under severe pressure early on before staging a significant intra-day rally (>7%) and then continuing to trend higher over the rest of the month.
- The market finished down -2.9% (including dividends the month finished down 1.9%) although well off its low.
Download the Wrap Up of the Market for August 2011 here.