Global shares rose 0.8% on a hedged basis with the US market driving the biggest share of returns once again. The US market continues to deliver strong earnings supported by tax cuts.
Global shares rose 1.5% and 4.1% in hedged and unhedged terms respectively. Developed markets remained solid, while emerging market shares remain under downward pressure.
• Share market performance was boosted in July as trade tensions eased. Global shares returned 3.2% and 2.5% in hedged and unhedged terms respectively.
Share markets delivered solid returns in June. However, the gap between robust returns across most developed markets and weak returns in emerging markets continued. Australian equities continue to perform strongly.
Trump’s trade tariffs with possible repercussions in the form of a trade war and a shake-up in technology stocks, led by Facebook on the back of its privacy violation, meant March was a bumpy ride for Wall Street. The U.S. stock market finished the first quarter of 2018 with losses for the first time in 10 quarters.
Share markets continued late-January’s correction in February before a partial bounce-back saw global shares recover some ground, ending the month down 3.7% in hedged terms. New US Federal Reserve Chair Jerome Powell’s debut testimony flagged the Fed may raise rates 4 rather than 3 times this year. This, along with prospects of a larger US fiscal deficit sent US Treasury yields and the US dollar higher.
Most share markets ended 2017 positively, with global shares in hedged terms returning 1.1% in December, topping off a strong year (20.0%). A strong earnings season and the passing of the long anticipated tax reform legislation boosted US shares in December. The S&P 500 delivered positive returns for each month of 2017 without much volatility.
The US remains buoyant with business and consumer confidence elevated. The US share market (S&P 500) keeps powering along supported by solid earnings and accommodative policy.
Talk surrounding Donald Trump’s proposed tax reforms and solid economic data more than offset concerns about North Korea, the US Federal Reserve announcing that they will commence to trim their balance sheet and likely lift rates again this year.
Share markets in the US closed flat for August after a choppy month on the back of US political uncertainty, riots in Charlottesville and tensions in North Korea. The devastation of Hurricane Harvey also contributed to what has been the most volatile month in the S&P500 this year.
Global share markets paused in the month following rising volatility on the back of lower oil prices. The Fed raised interest rates by another 25bps following better economic conditions although the market ...