This monthly commentary gives a round-up of global markets and trends.
In this edition:
- It’s been a tough market for fixed income assets, with UK, US and eurozone government bonds seeing record price declines
- The weakness in the bond market has also hurt the equity market - the valuations of rate-sensitive stocks have dragged down the broader equity market
- For bond and equity markets to stabilise, there needs to be a sufficient slowing in the US labour market to encourage the Fed to ease back on its hawkish monetary policy stance
- Higher yields on US government bonds are driving up the value of the dollar, pushing some central banks to intervene in foreign exchange markets
The value of an investment may go down as well as up and you may get back less than you originally invested.