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Investment Managers Securities Analysts

Bermuda & Cayman

Global Markets

World Markets Quarterly Review

June 30, 2019

1DJIA3.2%
1S&P 5004.3%
1NASDAQ3.9%
2TSX4.7%
3BSX4.9%
4Bolsa2.8%
5Bovespa  7.7%
6Mervel27.1%
7UK FTSE0.9%
8CAC7.5%
9DAX8.9%
10Kospi-2.2%
11Nikkei3.2%
12Hang Seng0.4%
13Straits Times5.3%
14ASX6.9%

Source: Bloomberg

The S&P Global 1200 index advanced 4.1 percent for the quarter ended June 30, 2019. All returns are expressed in US dollars.

Stock, Bond, Currency Overview

Global Stock Markets

  • Global equities rose in Second Quarter 2019 on expectations central banks will loosen monetary policy to arrest an economic slowdown..
  • Within the S&P 500 Index, the Financials and Materials segments outperformed while the Energy sector lagged as oil prices fell.
  • Emerging Markets struggled against the prospect of a weaker economic backdrop with Latin America outperforming Emerging Asia.

Bond Markets

  • Treasury yields fell in Second Quarter 2019 as investor anxiety rose in response to reports of slowing global economic growth and a dovish Fed.
  • Investment grade corporate bonds outperformed Treasuries as investors reached for yield.
  • Canadian yields fell less than those in the US on expectations the Bank of Canada will keep interest rates on hold amid signs of an improving domestic economy.

Currency Markets

  • The US dollar depreciated against most major currencies on expectations of interest rate cuts by the Fed and President Donald Trump’s increasingly vocal desire for a weaker currency.
  •  Sterling depreciated against all major currencies amid a leadership contest within the Tory party and a growing risk of the UK crashing out the EU in October 2019.
  • The Japanese yen and the Swiss franc appreciated against all G10 currencies as safe-haven demand increased amid global trade tensions.