Quarterly markets review
Overview of markets in Q4 2017
- Global equities capped off a strong year with gains in the fourth quarter. In fixed income, the US Treasury and German Bund yield curves flattened.
- The S&P 500 made a strong advance in the quarter, buoyed by hopes of tax reform.
- Eurozone equities declined amid some profit-taking and simmering political risk, although economic data remained positive.
- The UK’s FTSE All-Share Index saw positive returns, supported by gains for resource stocks and progress on Brexit negotiations.
- Japanese equities posted gains as the incumbent LDP won the October general election while corporate earnings were strong.
- Emerging market equities recorded a strong gain in Q4 and outperformed developed markets with political developments supporting gains.
- US Treasury yields rose over the quarter, and the yield curve flattened, amid growing momentum behind a tax reform bill which is expected to stimulate growth and inflation.
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