Quarterly markets review - Q2 2014

Market Views


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  • Global equities made gains in the second quarter, supported by ongoing accommodative monetary policy from central banks. Geopolitical tensions were in focus amid an escalation of conflict in Iraq, which pushed oil prices higher. 
  • In the US, the S&P 500 had a strong quarter. GDP growth for the first quarter disappointed but data releases pointed towards a more encouraging picture for the second quarter.  
  • Eurozone equities were supported by the European Central Bank’s announcement of measures to stimulate growth and fend off the risk of deflation. The measures included a cut to interest rates and the introduction of a negative deposit rate. 
  • UK equities edged higher though markets were unsettled by suggestions that an interest rate rise could happen sooner than expected. In Japan, macroeconomic data was mixed following the increase in the consumption tax. 
  • Emerging markets outperformed developed market peers. Emerging Asia was the strongest region led by gains in India. There was optimism about the country’s growth and reform prospects following the election victory of Narendra Modi.   

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Quarterly markets review 5 pages | 219 kb