Quarterly markets review - Q1 2017
- Global equities delivered robust gains in the first quarter amid an upswing in global economic data. Emerging market equities were particularly strong while bond markets saw more mixed performance.
- US equities advanced to fresh all-time highs, supported by positive economic data and President Trump’s plans to cut taxes and regulations. The Federal Reserve raised rates by a further 0.25%.
- Eurozone equities delivered robust gains amid upbeat economic releases and receding political worries following the win for the centre-right in the Dutch elections.
- UK equities gained, supported by solid corporate results and merger & acquisition activity. Article 50 was triggered at the end of the period, signalling the formal start of the process to leave the EU.
- Japanese stocks saw positive but muted returns with the yen gradually appreciating over the quarter.
- Emerging markets registered a robust return. An upturn in global growth and a lack of follow-through on protectionist trade policy from the Trump administration supported risk appetite.
- In bond markets, high yield corporate bonds performed particularly well, while government bonds were more mixed.