| Markets were calmer this summer than June’s Brexit vote might have suggested (MSCI AC World +0.12% in dollar terms).. Volatility declined, trading volume fell and equity markets responded positively to a combination of improving outlook for global growth, better than expected corporate results and a favourable monetary backdrop. The Bank of England cut interest rates to counter the economic impact of the Brexit referendum and restarted its asset purchase programme, while the European Central Bank made clear it would provide more stimulus as and when needed. Fed Chair Yellen said the case for a rate increase was strengthening, but provided little clarity on when it would next move. Global equities nevertheless posted mixed performance Emerging markets outshone all markets with a near 3% gain. UK equities was an outstanding performer among developed markets, followed by Japan. Europe and the US posted more modest gains. Energy stocks got a boost from a strong rally in oil prices during the month. Health care stocks lost ground amid political debate over drug pricing ahead of the US presidential election. Global bonds posted negative returns equities (JPM Global Bond index -0.46%) suggesting that with USD 13 trillion of government debt already trading at negative yields, the returns that can be expected from monetary stimulus will likely diminish in the future. Investment grade and high yield corporate debt had another solid month amid continued investor search for yield.
Bolero factsheet Août 2016 EUR – FR
Bolero_factsheet Aug16 USD – EN
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