Politics takes centre stage, once again

Overview Global equity markets (ex-UK) were relative sanguine in April, gaining between 1% and 3% in local currency once sterling volatility was removed.  As can be seen below, the strength of sterling post the election announcement has detracted from that performance for UK investors, while the market has repriced large cap UK companies for the … Continue reading “Politics takes centre stage, once again”

Emerging markets review – July 2016

Global equity markets generally rose during July, and the overall performance of emerging markets outstripped that of developed countries as investors sought growth opportunities. Investor sentiment in China received a boost from encouraging retail sales data: retail sales rose at an annualised rate of 10.6% in July, compared with 10% in July. Industrial production proved … Continue reading “Emerging markets review – July 2016”

Europe market review – July 2016

Having dropped during June following the UK’s shock Brexit vote, European equity markets rose during July, boosted by speculation over further stimulus measures. Nevertheless, confidence remained brittle, undermined by terrorist atrocities in France and Germany , and by continuing uncertainties surrounding Brexit. European Central Bank (ECB) policymakers believe that Brexit could have a “significant” effect … Continue reading “Europe market review – July 2016”

US market review – July 2016

US equity indices rebounded in July after a June that was marred by the fallout from the UK’s Brexit vote. Investors drew encouragement from some relatively strong corporate earnings releases, and both the Dow Jones Industrial Average Index and the S&P 500 Index both hit new all-time highs during the month. During July, the Dow … Continue reading “US market review – July 2016”

Global bond market review – July 2016

Although the initial shock of the UK’s Brexit vote had time to wear off as July progressed, global bond yields remained under pressure. Against a backdrop of declining yields and low interest rates, demand for bond funds continued to rise as investors searched for returns amongst the relative safety of high-quality government bonds and investment-grade … Continue reading “Global bond market review – July 2016”

UK equity market review – July 2016

The fallout from the UK’s Brexit decision continued to overshadow newsflow and sentiment during July. In particular, the first half of the month was dominated by political upheaval that resulted in the appointment of Theresa May as Prime Minister and Philip Hammond as Chancellor of the Exchequer. Over July as a whole, the FTSE 100 … Continue reading “UK equity market review – July 2016”

UK equity income market review – July 2016

Yields continued their downward path during July. The yield on the FTSE 100 Index fell from 3.84% to 3.72% during July; meanwhile, the FTSE 250 Index’s yield dropped from 2.82% to 2.66% and the FTSE Small Cap Index’s yield declined from 3.07% to 2.91% . In comparison, the yield on the ten-year UK government bond … Continue reading “UK equity income market review – July 2016”

UK bond market review – July 2016

Expectations of monetary easing, combined with strong demand for safe-haven investments, drove down UK bond yields during July. However, investors were surprised – and, in some cases, disappointed – by the Bank of England (BoE) policymakers’ unexpected decision to leave UK interest rates unchanged at 0.5% at their July meeting. A cut in rates, accompanied … Continue reading “UK bond market review – July 2016”

Global markets rebound in July

Global equity markets generally rose during July. Concerns about the UK’s decision to leave the European Union (EU) appeared to subside as the month progressed and investors’ appetite for equities was boosted by hopes that central banks in the UK, Europe, and Japan will introduce fresh stimulus measures. In the UK, however, investors were surprised … Continue reading “Global markets rebound in July”

Brexit boosts emerging markets

Emerging equity markets generally performed better than developed markets during June. Although the UK’s decision to quit the European Union (EU) exerted heavy downward pressure on share prices around the world, many developing markets enjoyed relatively strong performance. Sentiment towards emerging markets was boosted by supportive statements from leading central banks in the wake of … Continue reading “Brexit boosts emerging markets”

Brexit raises questions over EU’s future

In Europe, June was dominated first by speculation over the possible outcome of the UK’s referendum on its future membership of the European Union (EU), and then by the unexpected news that a slim majority of UK voters had opted to quit Europe. The shock result plunged global financial markets into a state of heightened … Continue reading “Brexit raises questions over EU’s future”

Yen’s surge hits Japan’s exporters in June

Having fallen heavily in the wake of the UK’s shock decision to quit the European Union (EU), Asian markets experienced a slight rebound as June drew to a close. Japan’s Prime Minister, Shinzo Abe, attended an emergency meeting between the Government and the Bank of Japan (BoJ) to discuss the implications of the UK’s exit … Continue reading “Yen’s surge hits Japan’s exporters in June”

Strong demand for defensive and high-yielding stocks

Global markets experienced their worst-ever two-day loss in the wake of the UK’s decision to quit the European Union (EU), losing a record US$3.01 trillion, according to S&P Dow Jones Indices. Nevertheless, the leading mainstream US equity indices managed to rebound from sharp initial losses to end the month in marginally positive territory. The Dow … Continue reading “Strong demand for defensive and high-yielding stocks”

Global bond yields plummet

Investors’ appetite for high-quality bonds received a huge boost during June. Demand surged following a shock victory for Brexit campaigners in the UK’s referendum over its future membership of the European Union (EU). The news triggered turmoil in financial markets: equity prices plummeted and investors focused on perceived “safe-haven” assets, including the Japanese yen, gold, … Continue reading “Global bond yields plummet”