Australian equities got off to a dismal start to the new financial year after a huge rally in the last month of the previous financial year.

Australian equities got off to a dismal start to the new financial year after a huge rally in the last month of the previous financial year.

The ASX 200 lost 1.8 per cent in July, according to Ausbil Dexia, dragged down by resource stocks.

Listed property trusts were the shining light in July, rising 2.5 per cent. The rise caps off a great run from listed property trusts in the volatility which has hit world markets since April. In the four months since April, the listed property trust index has risen 8.6 per cent.

International equity markets did not fare much better than the Australian bourse. The Nasdaq dropped 5 per cent over the month, while Asian markets were hit hard. Japan dropped 9 per cent, Korea 14 per cent and Thailand fell 12.6 per cent for the month. However, another drop in the Australian dollar and better results from the Dow and Europe gave the international index a rise of 0.8 per cent for the month.