July Market and Economic Update

June was a difficult month for all asset classes with negative returns across core equity, government bond and corporate credit indices. Whilst equity performance was weighed down by events in Greece towards the end of the month, bonds also reacted negatively to speculation that the Federal Reserve might raise rates as early as September.

  • In Asia there were signs that the bubble in Chinese equity indices may finally have burst with the main Shanghai Index off over 20% from the peak levels achieved earlier in the month.
  • Economic data from the US suggested the economy was rebounding after its weak first quarter. The headlines were dominated by strong job reports and a pick-up in wage growth, pointing to stronger momentum in the economy.
  • In Europe the latest economic activity reports for the region reached a four-year high, as growth gained momentum in Germany and France – the two largest economies.
  • However, Greece dominated the headlines as the stand-off with its creditors continued. Whilst markets are likely to remain volatile, the threat of contagion is much reduced given the ECB support mechanisms now in place.


Important information

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.

Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing.

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