It was a modest recovery for the Australian market after a brutal March sell-off that saw the equity market fall ~8%. Disappointingly, the domestic market significantly lagged global markets. The divergence reflected concerns around a deteriorating domestic backdrop as inflation forces the RBA to lift rates into a cost-of-living crisis. The result has seen weakness toward cyclical and rate sensitive parts of the market. While Australia’s tech sector performed inline with global tech its small market cap weight meant it added little to overall index returns.
