Economic Views

Monthly markets review - August 2015

A review of markets in August 2015, when worries over a Chinese economic slowdown sparked significant volatility.

09/04/2015

  • Global equities experienced sharp declines in August as worries over slowing Chinese growth sparked significant volatility across markets.
  • In the US, the S&P 500 fell by 6.0% with the decline led by some of the year’s hitherto best performers. The sell-off came despite continued strong macroeconomic data, most notably for the US consumer.
  • Eurozone and UK equities also delivered negative returns. Amid the global growth worries, declining energy and metals prices weighed on the resources sectors.
  • Emerging markets also registered steep negative returns, underperforming their developed market counterparts amid the volatility in China and ongoing economic weakness in Brazil.
  • In fixed income markets gilt, Treasury and Bund yields rose over the month. Riskier fixed income assets, such as high yield bonds, underperformed.

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The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.