August proved to be a particularly quiet month for markets, with low levels of volatility across equities and bonds, and little by way of significant news flow. Overall the ‘risk on’ environment of July, post the UK Brexit referendum, broadly continued in August: most equity markets rose modestly higher, with emerging markets leading the way and adding 2.5% in the month.
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Imperium Capital Publication
Weekly Digest – 25 September 2016
- Markets buoyed by central bank meetings
- Bond yields fall after US interest rates kept unchanged
- ‘Hard Brexit’ speculation pushes sterling lower
- Subdued PMI results for the euro area
- Choppy week for oil ahead of OPEC meeting
Weekly Digest – 19 September 2016
- Global bond yields rise in volatile environment
- Mixed US data ahead of Fed meeting
- Sterling falls after Chancellor’s comments
- European markets retreat as industrial production declines
- Reports of oil surplus sends prices lower
Weekly Digest – 11 September 2016
- ECB keep monetary policy on hold
- Fed Governor makes case for rate rise despite poor US data
- Global financial assets sell-off late in the week
- UK services sector strong, whilst trade deficit decreases
- Chinese trade data encouraging
Weekly Digest – 04 September 2016
- US displays lacklustre jobs creation
- Global manufacturing data yields mixed results
- European equities rise despite political rumblings
- Japanese equities rise over prospects of increased monetary stimulus
- Oil weakens following stockpile data
Weekly Digest – 21 August 2016
- Global equities subdued
- UK adds 170,000 jobs; retail sales growth picks up
- US inflation falls; NY Fed hawkish
- Japan see exports and imports slump
- The price of oil rises on rumours of output freeze
Viewpoint – August 2016
Fortunately, the Brexit vote proved to be anything but the globally systemic shock that many had predicted. Within weeks most equity markets had recovered all and more of their immediate post-referendum falls as it became clear that the only lasting impact on markets globally was to delay any prospect of monetary tightening into the long distant future.
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Weekly Digest – 14 August 2016
- Gilt prices rise as BoE suffers from supply drought
- US July data comes in below expectations
- Encouraging economic data out of China
- EU waives budget deficit fines for Spain and Portugal
- Oil rebounds from its bear market
Weekly Digest – 7 August 2016
- Bank of England cuts rates and adds to QE
- US sees continued job creation
- Bank of Japan announces fresh stimulus
- JGBs sell off; gilts rally
- Oil rebounds midweek
Weekly Digest – 31 July 2016
- European banking stress test results yield no major surprises
- Eurozone and UK GDP growth beat expectations
- US economic growth disappoints
- Japan: fiscal stimulus expected, monetary stimulus disappoints
- Oil enters a bear market