Quarterly markets review - Q4 2015
An overview of markets in Q4 2015, when global equities posted positive returns and the Federal Reserve finally raised interest rates.
- Global equities delivered positive returns for the fourth quarter despite generally poor performance in December. Government bond markets broadly reflected the policy trajectories of the world’s major central banks.
- US equities gained over the quarter. The Federal Reserve increased its main policy rate in December following strong domestic macroeconomic data.
- Eurozone equities posted positive returns overall, buoyed by hopes for further quantitative easing. However, the eventual announcement disappointed investors and weighed on returns in December.
- Japan was the best performing equity market over the quarter. A sharp rebound in October was driven by a recovery in cyclical sectors.
- Emerging market equities underperformed their developed world counterparts. The Chinese equity market posted a solid gain as the central bank provided further support to the economy. Economic data in Brazil continued to deteriorate.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.