Global and local markets staggered to an exhausted close for the month, quarter, half year and financial year this morning. 2015-16 was the most volatile financial year (and the six months to June 30 this year was perhaps even more unsettled) since the GFC, according to some analysts.
In fact it was a year when markets were given three big whacks – the first was in the wake of the sharp depreciation of the Chinese Yuan and the sell off in that country’s share markets which triggered a global tremor or three.
On August 24, the ASX 200 sank more than 4%, deeper than the 3.2% slump last Friday in the wake of Brexit.
The second was in late December through to early February (in the wake of the US Fed’s interest rate rise which in sent emerging market plunging, commodity prices lower as oil prices sagged and hit currencies hard, including the Aussie dollar which hit its most recent low of just over 68 US cents).
And finally, the third even was the shock Brexit vote in the UK late last week which saw markets slump globally (except for bonds which continued to fall to record lows).
Gold hit multi year lows, the pound fell to a 31 year low and although conditions had steadied by the end of the month and financial year yesterday, there are fears of a return of the chaos if Britain and the EU can’t clarify the departure process for the UK as quickly as possible.
The ASX 200 Index and the All Ords rose 1.8% and 1.7% to 5233.4 points and 5310.4 points, respectively. That saw the financial year end with the ASX 200 index down 4.1%. (but up 0.6% after dividends) The ASX 200 lost around 2% in June.
Some of that will be taken back today on the first day of the new financial year and quarter if the market opens and sustains the 50 point plus rise on the ASX 200 futures market overnight.
In New York, the the Dow jumped 235.31 points, or 1.3%, to 17,929.99, bringing it within 90 points of its pre-Brexit highs last week.
The S&P 500 climbed 28.09 points, or 1.4%, to 2,098.86, within 20 points of its pre-vote highs.
And the Nasdaq Composite rose 63.43 points, or 1.3%, to 4,842.67, within 70 points of its highs pre-Brexit.
Both the S&P and the Dow finished the second quarter with small gains of 1.2% and 1.7%, while the Nasdaq posted a slight drop of 0.5%.
Both the S&P and Dow are positive for the year, while the Nasdaq is in the red.
The MSCI All-Country World index was around 1%, but lost around the same amount over June, its worst month since February. It ended the quarter with a slight gain, rising 0.3%.
Most major Asian stock markets booked monthly losses in June. Japan’s Nikkei is the region’s worst-performing stock benchmark, lost 9% for the month. Hong Kong’s Hang Seng Index fell 0.6% over the same period.
In China, the Shanghai Composite was headed for a tiny gain of 0.45% (it lost around 15% over the Australian financial year though).
And smaller stock markets in Southeast Asia also did well this month, with the Philippine Stock Exchange’s PSEi index up 6.45%.
Oil and gold had good quarters.
In New York August West Texas Intermediate crude fell $US1.55, or 3.1%, to settle at $48.33 a barrel.
For the quarter, prices gained over 26.1% to mark the best quarterly percentage gain since the second quarter of 2009. Year to date, futures prices are up 30.5%.
And in London August Brent crude which expired at the settlement, fell 93 cents, or 1.8%, to $US49.68 a barrel. Futures prices were up a very solid 25.5% for the quarter, and 33.3% for the six months to June 30.
Comex August gold futures in New York fell $6.30, or 0.5%, to settle at $US1,320.60 an ounce, easing a day after futures prices marked their highest close since July 11, 2014.
But they were up about 6.9% for the second quarter and are up a very solid 24.6% since the end of 2014,
Silver though has done better. Comex September silver added 21.6 cents, or 1.2%, at $US18.623 an ounce—the highest settlement since mid-September of 2014.
Futures prices rose nearly 20% for the quarter and have jumped about 35% for the year to date.
Copper was more modest. Comex, September copper added 0.4%, to $US2.196 a pound, with prices about 2.8% higher year to date.
Iron ore prices are up from just under $US40 a tonne at the end of December to just over $US55 a tonne yesterday.
But it was down sharply from the average for June, 2015 of around $US62.30 as tonne.
