Market Update Image 4-Resize
11 August 2023

Market Update – July 2023

The new financial year has kicked off with another strong month for equity markets. The ASX200 rallied +2.9%, along with international equities +2.3% and bonds +0.4%.

Of note is the rally in small caps and cyclical stocks globally, suggesting investors are getting incrementally more bullish on the global economy.

Our view remains cautious in the short term, and more optimistic in the long term. We are still yet to see the full impact of a sharp rate rising cycle on the real economy or on corporate earnings, in our view. Of particular importance is the resilience of the equity market once the labour market starts to deteriorate.

Reporting season will provide a particular acid test for local shares, as the economy continues to digest higher inflation and transitions from the pandemic into a higher interest rate environment. Of particular interest is the bank updates, their outlook, and trading updates and guidance from the more economically sensitive parts of the index. These should provide a good indicator of what is happening in the real economy, and of what the path is likely to entail.


The contents of this publication are only intended to provide a summary and general overview of matters of interest in the financial markets and in the economy and are distributed in order to promote broad discussion. The publication does not constitute investment or financial product advice, it does not constitute an offer or invitation to purchase a financial product or financial service, nor does it of itself create a client-financial adviser relationship. To the extent that any part of the contents of this publication may be said to constitute “general advice” we warn you not to act on any matter referred to in this publication without first seeking qualified financial product advice appropriate to your particular circumstances, needs and objectives before acting or relying on any content in this publication. TWD Licensee Services Pty Ltd (ABN 88 605 064 480 – AFSL 475964) makes no warranties or representations about the accuracy or completeness of the content of this publication, and excludes, to the maximum extent permissible by law, any liability which may arise as a result of the use of the content of this publication.