United States shares closed out a dismal month (falling 2.8% on the last trading day of the month) as investors contended with a slew of headwinds, from central bank monetary tightening, rising interest rates, persistent inflation, COVID case spikes in China and the ongoing war in Ukraine. Added to this, on the domestic front, is the Federal Election which is due to be held on the 21st of May.
Rising commodity prices provided the base for a recovery in the Australian share market in the month of March. The All-Ordinaries index closed the month 6.4% higher at 7,232 points, and has now recovered all losses from earlier in the year.
The Australian Dollar continued to strengthen, gaining by 3.1% for the month with 1 Australian Dollar currently buying 75 United States cents.
Russia’s invasion of Ukraine has added another dimension to a volatile start to equity markets in 2022. For the month of February, the All-Ordinaries index closed the month 0.8% higher at 7,323.2 points. The Australian Dollar gained by 2.7% for the month with 1 Australian Dollar currently buying 72.63 United States cents.
A higher-than-expected inflation result both domestically and in the United States, coupled with rising bond yields, sent the Australian share market into sharp decline in the month of January. The All-Ordinaries index closed the month 6.6% lower at 7,268.3 points.
Despite a surge in Covid cases due to the Omicron variant, the Australian share market posted a gain in the month of December. The All-Ordinaries index closed the month 2.5% higher at 7,779.2 points. For the 2021 calendar year, the All-Ordinaries index gained by 13.6% (excluding dividends).
The Australian share market fell marginally in value for the month of November (although will open lower today following overnight falls in the United States), with the All-Ordinaries index closing the month 0.7% lower at 7,587.4 points.
The Australian share market was flat in October, with the All-Ordinaries index closing the month 0.1% higher at 7,639.1 points. The Australian Dollar rallied by 4.0% in the month, with one Australian Dollar currently buying 75.15 US cents.
As they say, “all good things must come to an end” and the run of eleven consecutive monthly gains for the Australian share market came to an end in September. The All-Ordinaries index closed the month 2.5% lower at 7,629.70 points (and is sharply lower on today’s open after US markets closed the month down).
An extension of lockdown measures in Sydney and Melbourne did not prevent another positive month for the Australian Share market. For the month of August, the All-Ordinaries index closed the month 2.1% higher at 7,823.3 points.
Despite further lockdown and the spread of the COVID-19 delta variant, the Australian share market managed to record gains in the month of July, with the All-Ordinaries index closing the month 1.0% higher at 7,664.2 points.