Quarterly markets review - Q2 2016

A look back at markets in Q2 2016 when the UK's vote to leave the EU caused significant volatility.


Market Views


  • Markets made a confident start to Q2 although the UK’s vote to leave the EU overshadowed other developments by the end of the period. Global equities delivered positive returns in US dollar terms. Commodities gained, with energy outperforming.
  • US equities gained over the quarter, supported by expectations that additional interest rate rises would be delayed.
  • The UK’s FTSE All-Share was among the strongest markets as a sharp depreciation in sterling was viewed as advantageous to a stockmarket comprising predominantly overseas earners.
  • Eurozone equities had a turbulent quarter following the UK referendum, with financials particularly under pressure.
  • Japanese equities posted considerable declines as a sharp appreciation in the yen (up 9.1% against the dollar) had a particularly negative impact on the stockmarket.
  • Emerging markets slightly lagged developed markets. Brazilian equities were up sharply as the real rallied strongly against a backdrop of easing political risk
  • Government bond yields were sharply lower over the quarter, with the 10-year German Bund yield dropping into negative territory.

Read the full report

Quarterly markets review - Q2 2016 5 pages | 170 kb


Important information: The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This article is intended to be for information purposes only and it 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. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored.