Influenced by news of slowing inflation and growth momentum in the US in particular, June was a positive month for most global equity and bond markets (with bond yields falling). French markets were an exception as political uncertainty rose with the calling of an early election.

Last night in the US two key events occurred – the release of the May Consumer Price Index (CPI) and the latest Federal Open Market Committee (FOMC) announcement. The CPI had more market impact.

May was a month of two halves for equity and bond markets. In the first half of the month equity and bond prices rose (bond yields fell), but the second half of the month witnessed a turnaround taking many equity markets lower from record intra-month highs.

Australian and global growth, and earnings remain surprisingly resilient as the outlook for the timing (and likelihood) of central bank policy cuts remains key.

Australian and global growth, and earnings remain surprisingly resilient as the outlook for the timing (and likelihood) of central bank policy cuts remains key.