July was a positive month for the majority of asset classes, as measures of market volatility remained low and indicators of global growth remained on a firm footing.
What happened in the markets?
- Asia Pacific and Emerging Market equities continued to lead the way, with a stronger month for global commodity prices and continued US dollar weakness supportive of returns
- In developed equity markets, tobacco stocks fell heavily on both sides of the Atlantic following the news that the US Food & Drug Administration is considering regulating nicotine levels in cigarettes
- Despite these headwinds, accommodative monetary policy and a positive start to second quarter earnings season helped US equity markets reach new highs
- In Europe, the recent strength of the euro, which reached a 30-month high against the US dollar following hawkish comments from the European Central Bank (ECB), acted as a headwind for the competitiveness of European equities, despite solid returns from the banking sector
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The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This is not a personal recommendation or advice to invest. Past performance is not a guide to future performance.
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