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.

7 January 2016

Market Views

Schroders

  • 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.

Read the full report

0 pages | 156 kb

DOWNLOAD

Topics:

  • Market Reviews Schroders

Important Information: The views and opinions contained herein are those of Schroders’ Investment team, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.  UK: Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA, is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. Further information about Schroders can be found at www.schroders.com US: Schroder Investment Management North America Inc. is an indirect wholly owned subsidiary of Schroders plc, a SEC registered investment adviser and is registered in Canada in the capacity of Portfolio Manager with the Securities Commission in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan providing asset management products and services to clients in Canada. 875 Third Avenue, New York, NY, 10022, (212) 641-3800. www.schroders.com/us