July market update – Prospect of a trade war dominated headlines

The prospect of an escalating trade war dominated the headlines in July.

The prospect of an escalating trade war dominated the headlines in July, as President Trump looked to implement new tariffs on Chinese imports and both sides failed to blink, widening their potential range of targets. However, risk assets remained in favour, with a positive start to the earnings season in Europe and the US driving equity market returns.

What happened in the markets?

  • US equities were notably strong over the month, against a solid macroeconomic backdrop that saw the first reading of the second quarter GDP rise to +4.1% annualised
  • UK large caps and European equities were also positive in July, with financials contributing positively across markets at the sector level, as bond yields rose on expectations of monetary policy changes by the Bank of England and Bank of Japan
  • Asian and Emerging Market equities recovered some of their second quarter losses despite the heightened trade tensions and weakness in commodity markets

Read our market commentary

We hope you have found this update helpful. Please do get in touch on 020 7189 2400or email contact@tilney.co.uk if you have any queries or would like more information.

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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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