After a stellar 7-week run in which the local market rallied more than 9%, and included its best May in more than 10 years, the local market took a breather this week, falling 1.5%. Share prices fell across the board with investors becoming concerned that company valuations are beginning to look stretched.
It was a quiet week on the US market, with the Memorial Day holiday on Monday, finishing up around 0.5% for the week. Comments from Federal Reserve Chair Janet Yellen that US interest rates were likely to rise in the coming months had little impact on the US market, suggesting the US economy was robust enough to withstand any rise.
This week (All Ordinaries Index)
Fiscal year to date (All Ordinaries Accumulation Index i.e. including dividends)