0333 241 9900

News and Articles

An overview with Mark Preskett

Economic Commentary - May 2016

Mark Preskett, 10 June 2016

Equity and bond markets both posted minimal, yet positive returns in what was generally a calmer month for investors after a volatile start to the year.

UK equities rose 69 basis points in the month, while the Barclays Sterling Aggregate Bond index, a proxy for high grade UK debt markets, rose 1.67%. Global equities, as per the MSCI AC World Index, were up 0.77%.

Economic data was mostly positive, particularly a rebound in manufacturing numbers. Commodity prices remained stable and no major geopolitical event occurred.

After leading markets higher in the first quarter of 2016, emerging markets were the clear laggard in May. The catalyst for the falls was the release of US central bank minutes for April, which indicated the committee was considering an increase in interest rates soon, possibly as early as June. While the decreases for the main markets were only temporary, the dollar strengthened and emerging market currencies sold off.

The strength of the pound sterling was a major trend for UK investors, largely due to the increased likelihood that Britain will remain in the European Union after the June 23 referendum. Returns from overseas holdings for sterling investors were muted, apart from the US dollar, and this was an unwinding of the trend seen in the previous 18 months. Volatility in the sterling market has remained elevated and is likely to continue before the referendum.


Looking for investment advice? Call us on 0333 241 9900 for a free consultation or request a call back.

Categories

Categories: Investment Insights

Related Articles

Q2 Market Review 2018

16 July 2018 / Guy Myles

Book your free consultation

Friendly, approachable and no pressure

Manage preferences

Select the cookies below to help us personalise and enhance your experience on the site. We will remember your choice for 90 day, but you can change your mind at any point by click the manage cookies link in the footer of our website.

For more details on the exact cookies we use, please read our privacy policy.

Necessary cookies

Necessary cookies enable core functionality such as security and accessibility. These are required for the site to function and can only be disabled using your web browser settings.

Performance (analytics) cookies

We use performance cookies to gain an understanding of how people discover and navigate our website, and on which type of device. This helps us to improve our website by making informed decisions on real world data.

Targeting cookies

These cookies are set through our site by our advertising partners. They enable us to track the effectiveness of our advertising so that we can target our marketing spend in the most cost efficient way. Some advertising partners may choose to show you adverts on other sites relevant to you based on your browsing.