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Market Commentary

Below is a summary and highlights from the movements this quarter and major changes to some of
the key asset areas:
Quarter In Review – June 2024

A contrasting and polarising June quarter raised more questions than answers, but there were some
fleeting glimpses of markets behaving more rationally. Here’s hoping for more of these glimpses.

Following exceptionally strong December and March quarters, particularly for equity markets, the
June quarter was one dominated by stalling progress on the inflation fighting front, the first real
obvious signs of weakening economic data, and rising political and geopolitical risks, with a sprinkling
of significant election results, a Japanese Yen in free-fall, and the first interest rate cuts in major
economies.

It was a poor start to the quarter for markets, with real concerns that the downward trajectory in
inflation had stalled, resulting in market expectations for rate cuts being pushed out even further (i.e.
late 2024 or more likely 2025). This was an interesting, and somewhat crazy contrast, to what kicked
off the rally in markets in the fourth quarter of 2023 – i.e. predictions of six to seven rate cuts in 2024!
Labour markets remained too tight, particularly in Australia and the USA, with services inflation doing
most of the damage. Australian house prices continued to rise under the pressure of supply
constraints and mass immigration, whilst US retail sales came in ahead of expectations as animal
(consumer) spirits rose.

Sydney | Wollongong | Canberra | Melbourne | Adelaide | Brisbane | Townsville | Cairns
PSK Financial Services Group Pty Ltd (ABN 24 134 987 205) trading as PSK Private Wealth
PSK Advisory Services Pty Ltd (ABN 30 008 587 595) AFSL 234656