Investor sentiment turned in September with inflation data suggesting there were risks of further interest rate hikes ahead to cool ongoing consumer price pressures.
Inflation slowed to 4.9% in July, down from 5.4% in June, which cemented expectations of a pause in interest rates.
Global equities rose 2.1% in the month, with a 20% year-to-date gain in AUD terms. Value, small caps, and cyclical-stocks led the rally.
Global equity markets rose 3.1% in June, with a 7.6% return for the quarter. The rally included growth stocks, the IT sector, banks, retailers, small caps, REITs, and materials.
The RBA raised the cash rate by 25 basis points to 4.1% in early June, the second increase since April.
In April, global developed equities saw a slight positive tone, rising by 1.8%, with Europe ex-UK being the standout performer.
Global equity markets rose in March after a tough February.