Four highlights of stock market performance in August 2016


As per the latest reporting by Economic Insights, CommSec on global sharemarket performance, following key aspects have been revealed for performance in the month of August:


Performance of key Indices (Source: CommSec)

Overall a mixed performance by global markets amid various economic developments: Post-Brexit gains helped the global share markets rebound a bit and resulted in an overall mixed performance in the month of August. On one side, the US interest rate hike related speculations impacted performance of some sectors such as that of the precious metal, the gold sector; while towards the end of the month, September OPEC meeting news tried to revive the oil prices giving a boost to oil and energy stocks.

Interest rates played a role in European market: European markets rallied for five consecutive sessions while there was an interplay of activities related to decline in banking sector post the warning from Commerzbank about negative interest rates impacting profits.

Top-notch US earnings: US employment data and earnings results led 70% of S&P 500 companies touching the top range of earnings estimates.

Solid results in Australia: Almost 90% of the 139 companies from the ASX 200 posted profit for the year to June 2016, in the month of August 2016. Aggregate dividends were found to move up by 6.0% over the year. On the other hand, resources sector had given up some of their previous strong returns. Some experts believed that the earning season month revealed disappointments that were not more than as seen in the past.

Overall, the global sharemarkets were seen to have a mixed share of slice and have been moving more or less together in terms of performance given various macro headwinds. Nonetheless, the key feature of the month was the lack of volatility on a larger level.

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