July was a month of market rotation rather than broad market weakness, as investors again shifted away from crowded AI and technology exposures and towards more traditional sectors. Australian shares were among the strongest developed markets, supported by financials and energy, while higher bond yields created headwinds for fixed income markets.

Markets ended June on positive note.  A welcome feature of global equity markets in June was a broadening of market leadership as investors took profits on mega cap tech hyperscalers and the market rotated to sectors with more attractive near term earning.

May’s market rally was led by a narrow but powerful theme: global technology, artificial intelligence and semiconductor-related companies.