GTC WM Trendline – June 2017
Global: Improving economic data
Global equity markets continued to improve in Q2 with the MSCI World Equity Index returning 3.38% in Dollar terms. The quarter was marked by strong corporate earnings and for the most part positive economic data. The easing of political tensions in Europe also spurred on Euroland markets which resulted in the MSCI EMU Index returning 1.8% in Euro terms. Emerging markets continued to outperform with the MSCI Emerging Market Index returning 6.27% for the quarter.
US equities advanced, despite some vagaries in economic data coupled with concern over the ability of the US administration to push through its tax reforms and infrastructure stimulus proposals.The S&P500 delivered a total return of 3.1% for the quarter. In spite of muted inflation data, the Federal Reserve moved forward with its tightening monetary policy, raising rates by 0.25% and setting out detailed plans for the reduction of its balance sheet.
