The share market finished the month of October strongly with the All Ordinaries index gaining over 4% to close the month at 5,505 points. As I noted in last month's newsletter, the September market decline did not look like the commencement of a systematic decline – and it is welcome news for investors to see the share market recover strongly.
The September sharemarket curse continued in 2014, with the All Ordinaries index falling 5.8% to close the month at 5,296.8 points. Aussie shares have now declined by 1.0% for the calendar year, however there are compelling reasons to suggest that the September market performance was an 'aberration' and not the start of a systematic decline.
Global sharemarkets were mixed for the month of September, with the US Dow Jones Index falling 0.3%, the London FTSE falling 2.9%, the Hong Kong Hang Seng Index falling 7.3% and the Japan Nikkei 225 Index gaining 4.9% for the month.
The Australian share market closed the month of August flat at 5,625 points. This was despite a wave of negative geo-political events in Gaza, the Ukraine, Iraq/Syria and the complex Argentinian bond default (that all continue to play-out).
International share markets were mixed for the month of August, with the US Dow Jones Index gaining 3.2%, the London the FTSE gaining 1.3%, the Hong Kong Hang Seng Index falling 0.1% and the Japan Nikkei 225 Index falling 1.3% for the month.
The Australian share market started the new financial year strongly, gaining 4.5% to close July at 5,623 points. The good news may be short-lived however, with the US share market experiencing it's biggest daily fall since February overnight.
US stocks were sharply lower in Thursday trading as investors weighed disappointing earnings and Argentina's default, while considering the possibility of an earlier-than-expected rise in US interest rates.
Profit taking was evident in the Australian share market in the month of June, with the All Ordinaries Index falling 1.7% to close the month at 5,382 points. Nevertheless, it was a strong financial year for Australian shares, with the overall market gaining 12.7% for the full financial year.
Global share markets were mixed in June despite escalating violence in Iraq, with the US Dow Jones Index gaining 0.7%, the London the FTSE falling 1.5%, the Hong Kong Hang Seng Index gaining 0.5% and the Japan Nikkei 225 Index gaining 3.6% for the month.
It was a month of consolidation for the Australian share market, with the All Ordinaries Index gaining 0.1% to close the month of May flat at 5,474 points. International markets were stronger with the US Dow Jones Index gaining 0.8%, the London FTSE gaining 1.0%, the Hong Kong Hang Seng Index gaining 4.3% and the Japan Nikkei 225 Index gaining 2.3%.
Interest rates again remained on hold, with the RBA cash rate at 2.50% per annum and expected to remain at this level for the foreseeable future. The Australian Dollar gained in May and is currently buying 93.11 US cents.
The Australian share market was stronger in April, with the All Ordinaries Index gaining by 1.3% to close at 5,471 points. In the US the Dow Jones Index gained 0.7%, in London the FTSE gained 2.8%, in Hong Kong the Hang Seng Index fell 0.1% and in Japan the Nikkei 225 Index fell 3.5% for the month.
The Australian share market was flat in March, with the All Ordinaries Index declining by 0.2% to close at 5,403 points. In the US the Dow Jones Index gained 0.8%, in London the FTSE fell 3.1%, in Hong Kong the Hang Seng Index fell 3.0% and in Japan the Nikkei 225 Index fell 0.1% for the month.
The flat performance came on the back of softening of the Chinese economic data, weak US economic data (primarily due to poor weather) and comments from Janet Yellan (in her first meeting as head of the US Federal Reserve) suggesting a rise in US interest rates earlier than expected.
The Australian share market performed strongly in February, with the All Ordinaries Index gaining 4.0% to close the month at 5,415 points. The stellar performance saw the Australian market recover its January losses, with the All Ordinaries Index closing at its highest level for 2014.
Key international share markets were also generally strong in February. The US Dow Jones Index gained 4.0%, in London the FTSE gained 4.6% and in Hong Kong the Hang Seng Index gained 3.6%. In Japan the Nikkei 225 Index bucked the trend and fell 0.5% for the month.
It was a poor start to 2014 for investment markets, as worries about the strength of emerging market economies and the global impact of the US Federal Reserve winding back of its economic stimulus program weighed heavily.
The Australian share market performed well in context of the global share market performance, falling 2.8% to close January at 5,201.1 points. In the US the Dow Jones Index fell 5.3%, in London the FTSE fell 3.5%, in Hong Kong the Hang Seng Index fell 5.5% and in Japan the Nikkei 225 Index fell 5.5% for the month of January.