July’s Performance Overview
- Equity markets recovered in July, in the absence of any major negative news flow.
- Overall trading volumes remained subdued, consistent with what historically is a quiet news flow period ahead of the key August reporting period.
- The Australian market (ASX200) finished the month up +4.5%.
- The improved sentiment for riskier assets reflected diminishing concerns over the sovereign debt issues in
Europe and the extent of the slowdown in China.
- The outlook for the US economy remains the subject of debate with a number of key leading indicators showing renewed signs of weakness while Q2 corporate earnings are surprising on the upside.
- Investors were also beginning to focus on the potential for China to start re-stimulating its economy as sequential growth fell below trend.
- Domestically, the new Prime Minister announced a revised resource tax and set an election date for 21 August.
Download the Market Wrap Up for July 2010 here.