Quarterly markets review - Q3 2015
- Global equities declined amid worries about the economic slowdown in China and the implications for global growth. Emerging market equities underperformed developed markets.
- The US Federal Reserve’s decision to defer ‘lift off’ of interest rates was a key moment in the quarter and exacerbated the sense of uncertainty in markets.
- In the eurozone, the autos sector came under severe pressure after revelations that VW had misled regulators on emissions from diesel vehicles.
- Japanese equities suffered amid weaker-than-expected data for Japan’s economy. Stocks were further pressured as the yen saw inflows due to its perceived ‘safe haven’ status.
- Weak Chinese economic data was a drag on emerging markets while Brazil was also a focus as S&P Ratings downgraded the country’s debt to non-investment grade.
- The third quarter was broadly positive for global bonds, as commodity price weakness and fears over global economic growth led investors to seek out ‘safe havens’.
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.