The Australian sharemarket had a volatile month in April, with the All Ordinaries Index decreasing 1.2% to close at 4,833.9 points.
International markets were also mixed. The Dow Jones Index closed up 1.4%, the FTSE closed down 2.2%, the Hang Seng closed down 0.6% and the Nikkei 225 closed down 0.3% for the month.
Volatile trading conditions were apparent in April as problems emerged in European markets. In particular, Greece struggled to negotiate a bail-out package with the European Union, and Standard & Poors downgraded the credit rating for Spain and Portugal. This has lead to concerns of a sovereign debt default.
In other market news, US investment bank Goldman Sachs was accused of fraud for its actions leading to the Global Financial Crisis. Regulators in the US have earmarked the prospect of placing criminal charges against those responsible. Goldman Sachs’ share price has fallen by nearly 10% since fraud charges were filed.
Interest Rates & Economic Data:
The Reserve Bank of Australia again raised the interest rates in April. The RBA cash rate is currently 4.25% per annum. Recent inflation results may give cause for the RBA to increase rates again this month.
The month ahead will see the Government finally release the Henry Taxation Review and also the Federal Budget.