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
I hope you have found this update helpful. Please do get in touch if you have any queries or would like more information.
Disclaimer
This article was previously published on Tilney prior to the launch of Evelyn Partners.