| Global equity markets posted mixed performance in May (MSCI AC World -0.19% in dollar terms). The American and European markets reacted positively to surprisingly hawkish FOMC minutes showing that most officials considered it appropriate to tighten policy in June if data continued to improve. The US economy appeared to have regained momentum early in Q2 with retail sales, goods exports, industrial production, housing starts and home sales surging in April. Employment data however were mixed. The prospect of a near term rate hike strengthened the US Dollar against all major currencies, making a pause in the weakening trend started in January. European Q1 GDP growth (+1.5% yoy) was encouraging but consumer inflation figures were far below the central bank’s 2% target. Emerging market equities fell on fears of an imminent rate hike and dollar strength, renewed concerns about China’s growth. In Brazil, President Rousseff was removed from government with Vice President Temer taking charge. Commodities were also mixed. Gains in oil, on the back of supply disruption caused by natural disasters (Canada fires) and geopolitical instability (Nigeria, Turkey, Lybia) were offset by decline in Metals including Gold. In the fixed income markets, longer duration Treasuries and corporate investment grade outperformed US and European high yield as the yield curve flattened. US short term treasury rates rose with yields on longer dated maturities posting a modest decline. The Emerging market debt also ended the month positively.
MC Bolero fund USD – EN – May 2016
MC Bolero fund USD – FR – Mai 2016
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