Monthly Markets Review April 2008 (62 KB)
- Global stockmarkets recovered some lost ground in April amid some signs that the worst of
the credit crisis may now be behind us.
- The Federal Reserve cut US interest rates to 2%, and suggested that it may pause to see if
the previous reductions have the desired effect on consumer and corporate activity.
- Oil prices continued to push higher, which is keeping upward pressure on inflation around the
world.
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Monthly Markets Review August 2008 (145 KB)
- The opposing forces of weakening economic growth and inflation continued to weigh on markets.
- Inflationary pressures fell – oil price declined from their recent record highs.
- Some US data was better than expected, leading to strengthening of US dollar.
- Weak economic data releases led to a rally in global government bonds.
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Monthly Markets Review December 2007 (61 KB)
- The key themes of 2007 – the credit crunch and the ensuing financial turmoil – continued to
impact sentiment in December, and stockmarkets in most regions ended the month lower.
- In local currency terms, UK and emerging market stock ended the month higher, while the
US, Eurozone and Asia slipped. Economic data from the US, the world’s largest economy,
continued to be mixed, though the underlying trend indicates a gradual cooling.
- In terms of central bank action, the Federal Reserve cut rates by 25 basis points to 4.25%,
disappointing some investors who had been looking for a half-point cut. The Bank of England
also cut rates, while the European Central Bank and the Bank of Japan left rates unchanged.
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Monthly Markets Review February 2008 (61 KB)
- Western equity markets finished the month generally lower, while emerging markets
rebounded strongly on the back of ever-higher commodity prices.
- Central banks, especially the European Central Bank, are again focusing on the threat of
inflation. Crude oil hit a record $103/barrel during the month, while food and metal prices
continued to surge.
- Against the background of uncertainty, bonds benefited from the continued flight-to-quality,
with year-to-date returns outpacing those of equities.
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Monthly Markets Review January 2008 (60 KB)
- Recession fears gripped global equity markets in January
- In emergency measures, the US Federal Reserve slashed interest rates by a total of 125 basis
points in two separate statements
- There were also further write-downs from a number of leading banks
- Bonds generally had a very good month, enjoying a strong start to the year.
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Monthly Markets Review July 2008 (60 KB)
- The opposing forces of inflation and weak economic growth continued to weigh on markets.
- Weak economic data releases prompted government bonds to rally across several markets.
- Fears over the collapse of US mortgage giants, Freddie Mac and Fannie Mae, rattled
markets before the government announced measures to support both corporations.
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Monthly Markets Review June 2008 (59 KB)
- Mounting inflationary pressures and weak economic growth served to re-inject uncertainty
into the markets in June.
- Global equities experienced a sharp sell-off as record oil prices fuelled fears of spiralling
inflation and re-ignited concerns over the health of the financial services sector.
- Banks were amongst the worst hit as investors speculated about further write-downs. Automakers
also bore the brunt of the fallout as input costs increased and consumer demand
began to wane. Encouragingly, the more defensive areas of the market found support in their
‘safe haven’ status.
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Monthly Markets Review March 2008 (103 KB)
- Global stockmarkets in March continued to be hurt by concerns affecting the financial system as well as the slowdown in the US economy. Another 0.75% cut in US interest rates helped ease some of the pressure.
- Some of the better performances came from stocks that are seen as being particularly resilient to a weaker economic environment, such as consumer staple and utility companies.
- In commodities, oil prices were volatile, setting a new high of $111.80 a barrel. Gold also traded above $1,000 an ounce as investors hedged dollar weakness and inflation fears.
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Monthly Markets Review May 2008 (60 KB)
- Global equity markets saw some semblance of order return in May as investors came to the
view that the worst of the credit crisis may now be behind us.
- With oil rising above $135/barrel, inflation became the focus of the world’s main central banks, meaning that the rate-cutting cycle is almost certainly on pause.
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Monthly Markets Review November 2007 (92 KB)
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Global equity markets suffered considerable losses in November, as concerns about the fallout from the credit squeeze and rising commodity prices took their toll on investor sentiment.
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On a regional level, emerging Asian equities were hit particularly hard while Japan fared the best in US dollar terms, buffered by the appreciating yen.
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November was another strong month for global government bond markets, as investors moved to price in the likelihood of a recession in the US amid ongoing concerns about the impact of the credit crunch.
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In contrast, credit had one of its worst-ever months. Spreads on both US and eurozone investment grade and high yield bonds widened dramatically.
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Monthly Markets Review October 2007 (155 KB)
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Global equities endured further volatility in October, but markets generally ended the month in solid positive territory. Emerging Asian markets provided very high returns, while Japan was the weakest performer.
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Bond markets seesawed in October, but provided positive returns overall.
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Consumer confidence dipped in the US, even though economic growth and payroll numbers were much better than anticipated.
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In mid-October worries about banks’ exposure to risky investments were revived. The US’s largest bank, Citigroup, announced a big decline in profits and huge writedowns linked to areas including sub-prime mortgages and leveraged loans. This sparked a new rally in government markets and a sell-off in credit markets.
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The US Federal Reserve cut interest rates at the end of the month, but warned that the risk of rising inflation is now on par with downside risks to economic growth. Investors had already factored in more cuts, leading to further falls in the dollar.
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Crude oil and gold prices soared to near $100 per barrel and just under $800 per ounce respectively.
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Monthly Markets Review September 2008 (188 KB)
- The turmoil in the global financial system intensified with a number of banking failures on
both sides of the Atlantic.
- Economic growth continued to deteriorate – negative US unemployment data.
- Inflationary pressures continued to fall – oil price fell sharply.
- Weak economic data and financial crisis led to a rally in global government bonds.
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