Markets

Quarterly markets review - Q3 2016

An overview of markets in Q3 2016 when equities gained amid lower volatility and emerging markets outperformed.

06 Oct 2016

Investment Communications Team

Investment Communications Team

30 Minutes
Unstructured Learning Time

CPD Accredited
  • It was a generally positive quarter for markets and volatility across equities and fixed income was markedly lower compared to recent quarters.
  • US equities advanced and expectations rose that the Federal Reserve (Fed) would increase rates again before the end of 2016.
  • Eurozone equities made gains with economically sensitive sectors such as information technology and consumer discretionary outperforming.
  • UK equities moved higher against a more stable domestic political backdrop following the EU referendum vote. The Bank of England launched a series of monetary easing measures.
  • Japanese stocks were supported as the government released details of a fiscal spending package designed to run alongside the Bank of Japan’s continuing aggressive monetary policy.
  • Emerging market equities delivered strong returns as investors focused on high yielding assets. Among the equity markets to benefit most from the yield-seeking trend were Brazil, Russia and South Africa.
  • In bond markets, the 10-year Treasury yield climbed over the period while gilt yields fell. Global corporate bonds performed strongly.

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5 pages | 67 kb

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