The central bank game changer
International shares, as measured by the MSCI All Country World ex Australia Index (unhedged in AUD), climbed +5.2% over the June quarter with US equities again leading the way.
Investor confidence was bolstered by the shift from selective tightening to universal easing across the globe. From Europe to Japan, Australia, China, and New Zealand - Central Banks demonstrated a willingness to actually, and pre-emptively, cut rates in order to stem rising risks from deflation, trade threats and a slowing global economy.
After successive rate hikes through most of 2018, even the US Fed opened the door to a rate cut this year - providing assurances to markets that it too, was willing to prolong the expansion.
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