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In November 2024, the Australian and the US share market demonstrated a strong upward trend, largely influenced by positive economic indicators and a rally in US markets following Donald Trump's election victory, which boosted investor confidence in anticipated pro-business policies. Conversely, the Australian residential property market showed signs of cooling, with a modest increase in home values and declining sales activity attributed to rising borrowing costs and affordability challenges. The Reserve Bank of Australia maintained its cash rate amid ongoing inflation concerns, while mixed forecasts regarding future interest rate movements highlight uncertainty about economic growth and the potential impact of US policies on Australia’s economy.

The ASX 200 index exhibited fluctuations, reflecting a modest monthly increase, with banking and property sectors recovering while mining stocks faced challenges. Meanwhile, the S&P 500 outperformed, reaching a new high driven by strong technology and AI stock performances. The residential property market showed regional variations, with some cities experiencing growth while others saw declines, indicating a slowing momentum. The RBA's focus remains on stabilising inflation and monitoring the labor market. Different banks predict varying timelines for interest rate reductions.

In a month that defied the typical “September effect,” both the Australian S&P/ASX 200 and the US S&P 500 saw gains, with the ASX 200 increasing by 0.95% and the S&P 500 rising by 1.49%. The housing market also showed resilience, with national dwelling values rising 0.5%, though the pace of growth is moderating. The RBA kept the cash rate target unchanged at 4.35%.

In August 2024, the Australian S&P/ASX 200 showed cautious optimism with a modest gain, influenced by inflation data and the RBA’s steady cash rate. The US S&P 500 outperformed, driven by positive economic news and potential interest rate cuts by the Federal Reserve. The Australian residential property market saw a national home value increase, with notable growth in Perth and Adelaide, while Melbourne and Hobart experienced declines. Inflation in Australia eased, but the RBA maintained the cash rate, anticipating economic growth in 2025.

In July 2024, both the ASX 200 and the S&P 500 exhibited positive performance, with the ASX 200 outperforming the S&P 500. The Australian residential property market also demonstrated resilience and growth despite economic challenges. However, affordability issues remain a significant concern. Market predictions suggest that the RBA may maintain its cash rate at 4.35%, though further rate hikes are still possible if inflation data continues to show persistent price pressures.

In June, the ASX 200 demonstrated resilience, while the S&P 500 in the US reached new all-time highs before experiencing a slight decline. The residential property market continued to show strength, with capital cities leading growth. Sydney saw a monthly increase in property values, while Brisbane outperformed with a significant annual growth rate. The RBA maintained the cash rate, balancing concerns over persistent inflation, which stood above the target range. The overall economic context indicated slowing growth, with the first quarter recording minimal growth and a slight uptick in unemployment.

This month both the Australian and US share markets are trending upward, as indicated by the ASX 200 and S&P 500 indices. The residential property market has also displayed strength in consistent value growth in most capital cities, except for Melbourne. There have been mixed reactions from economists regarding the recently announced federal budget and its potential impact on inflation and interest rates. Read on to find out more.

This month’s update zooms in on the Australian share market's stance amidst global market jitters, notes the dip in major US tech shares, and tracks the steady ascent of property values. We also break down the latest on inflation and interest rates to keep you informed on these important economic signals.

March 2024 has seen notable activity in share markets both in Australia and the United States, with each market trending higher. The Australian residential property market is riding a wave of increasing housing values. Perth remains the best performer while Hobart saw a negative growth. The RBA has kept interest rates unchanged amidst sticky inflation. Read on to find out more.