MARKETS IN A NUTSHELL
We summarise the market movements for the latest quarter.
Global equity markets advanced, posting stellar results for the year – emerging markets (+37.8%) outperformed developed markets (+22.4%)
The US 10-year treasury yield rose, but traded at levels too low for this stage of an economic expansion – the spread between short and long dated yields has narrowed abnormally given growth prospects and interest and inflation rate expectations
The US dollar resumed its weakening trajectory of the first half of the year – after a brief rebound early in the quarter
Hard commodity prices, barometers of global growth, rose, with iron ore, copper and oil price gains underpinning robust global demand – precious metals prices gained on modest US dollar weakness
World growth accelerated, led by the US which recorded Q3 2017 GDP growth of 3% – the Eurozone continued to grow from a low base and China’s expansion accelerated as fixed capital formation was boosted
MONETARY AND FISCAL POLICY
Developed market monetary policy expansion stabilised as the Fed raised interest rates and the BoE reversed the emergency Brexit cut in response to rising inflation – while the ECB has indicated it could soon start tapering financial asset purchases
30 May 2023
3 Key Components to Assess the Trajectory of US Inflation
When looking at the outlook for inflation in the US we have to consider 3 key components. These being, the impact of commodity prices, rental prices in the US and wage price inflation. Linda Eedes, discusses these…
11 May 2023
MARKETS IN A NUTSHELL - APRIL 2023
‘Markets in a nutshell’ is Foord Asset Management’s monthly overview of market movements.