With the shortest day now behind us and a new financial year underway, there’s fresh energy in the air and plenty to keep an eye on in the financial landscape.
Wars in Europe and the Middle East, volatile oil prices and shifting US policies are making headlines but failing to dampen the optimism of the markets.
The ASX closed the financial year with a near 10% return – its strongest since the COVID-19 crisis and despite US tariff threats. Australia is somewhat insulated from the tariffs, but concern lingers due to the highly fluid nature of US policy and potential knock-on effects of global tariffs.
The tariffs are a bigger risk for the US economy, with inflationary risks from tariffs possibly prompting rate increases. Nonetheless, Wall Street remains upbeat. The S&P 500 index surged to a four-month high in June on hopes of further interest rate cuts and smooth trade negotiations.
The Aussie dollar has climbed to a seven-month high, while the US dollar tumbled to a three-year low. Oil prices posted their sharpest weekly declines after a spike during June as the Middle East conflict reached a boiling point.
In this month’s newsletter, we cover superannuation changes for the new financial year, how to plan a smooth wealth transfer, and the benefits of getting outdoors, even when it’s chilly.
As always, if you have any questions, don’t hesitate to get in touch.