Monthly markets review - August 2016

An overview of events in August 2016 when developed markets were largely flat and emerging markets made gains.

6 September 2016

Investment Communications Team

Investment Communications Team

  • The MSCI World index was little changed in August (in US dollar terms) and was outpaced by emerging market equities which were supported by investors’ focus on higher yielding assets.
  • US equities were little changed as expectations grew that the Federal Reserve would raise rates again this year.
  • Eurozone equities advanced, supported by some strong quarterly earnings. Cyclical sectors such as materials, financials and industrials were the top gainers.
  • UK equities performed well as the Bank of England launched a series of monetary easing measures in the wake of economic uncertainty following the Brexit vote.
  • Japanese equities gained slightly. The government released details of a fiscal spending package designed to run alongside the Bank of Japan’s continuing aggressive monetary policy easing.
  • Emerging markets extended their recent upward trend. Several markets continued to benefit from comparatively high real yields, including Russia, Brazil and Colombia.
  • In fixed income, the easing measures announced by the Bank of England were supportive for gilts, while sterling corporate bonds made further gains.

Read the full report

Monthly markets review - August 2016 5 pages | 68 kb



  • 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 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.