Economic Views

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’.