2016 and before
Quarterly markets review - Q2 2016
A look back at markets in Q2 2016 when the UK's vote to leave the EU caused significant volatility.
- Markets made a confident start to Q2 although the UK’s vote to leave the EU overshadowed other developments by the end of the period. Global equities delivered positive returns in US dollar terms. Commodities gained, with energy outperforming.
- US equities gained over the quarter, supported by expectations that additional interest rate rises would be delayed.
- The UK’s FTSE All-Share was among the strongest markets as a sharp depreciation in sterling was viewed as advantageous to a stockmarket comprising predominantly overseas earners.
- Eurozone equities had a turbulent quarter following the UK referendum, with financials particularly under pressure.
- Japanese equities posted considerable declines as a sharp appreciation in the yen (up 9.1% against the dollar) had a particularly negative impact on the stockmarket.
- Emerging markets slightly lagged developed markets. Brazilian equities were up sharply as the real rallied strongly against a backdrop of easing political risk
- Government bond yields were sharply lower over the quarter, with the 10-year German Bund yield dropping into negative territory.