Monthly markets review - July 2015
An overview of markets in July 2015 when developed markets rebounded but emerging markets lagged behind amid worries over Brazil and China.
- Developed market equities registered positive returns in July as diminished concerns over Greece allowed markets to recover from their June declines. Oil prices fell over the month.
- US equities were buoyed by stronger data including Q2 GDP growth which accelerated to a 2.3% annual rate. The Federal Reserve (Fed) left the door open for a possible September rate rise.
- The eurozone outperformed other regions as a bailout deal was reached for Greece and data indicated that the single currency area’s economic recovery was continuing.
- UK equities were supported by good results for a number of large caps as well as ongoing merger & acquisition activity.
- Emerging markets registered negative returns with currency weakness exerting downward pressure. Latin America was the weakest region as Brazil cut fiscal targets for 2015 and 2016. Volatility remained elevated in China.
- In fixed income, government bond yields fell across the board on worries over the slowdown in China.
Important information: The views and opinions contained herein are those of the named author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This document 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 Schroder Investment Management Ltd (Schroders) does not warrant its completeness or accuracy. The data has been sourced by Schroders and should be independently verified before further publication or use. No responsibility can be accepted for error of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. 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 guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. Any sectors, securities, regions or countries shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell. The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. Forecasts and assumptions may be affected by external economic or other factors. Issued by Schroder Unit Trusts Limited, 31 Gresham Street, London, EC2V 7QA. Registered Number 4191730 England. Authorised and regulated by the Financial Conduct Authority.