May 2014
The S&P/ASX300 accumulation index added 1.7% for April, building on the gains of the first quarter. Global equity markets were typically positive, although the Japanese Nikkei was the clear exception, losing 3.5%.
Equity market sentiment was once more hampered by geopolitical tensions in Russia and Ukraine. The region is important in terms of both energy supply and crop production and hence both the oil and wheat price continue to remain supported. In the US, the end of a severe winter has seen a pleasing improvement in recent economic data.
The best performing sector in April was Utilities, followed closely by Energy. The worst performing sectors were Healthcare and Information Technology.
This month we take a look at the economic backdrop to the new Federal Government’s first budget, highlighting the revenue pressure the country faces as the terms of trade decline.
Ralton SMA Monthly Reports