• Australian shares fared well in July, buoyed by suggestions that no further interest rate hikes will be necessary.
• With inflation coming off the boil, there was optimism that borrowing costs have peaked and could be lowered later this year. In turn, this could be beneficial for corporate earnings.
• Returns from overseas shares were positive too, albeit partly owing to weakness in the Australian dollar which boosted returns from offshore investments.
• Fixed income also fared well, both in Australia and offshore. Yields trended lower, which translated into favourable returns from bond markets.

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