Quarterly markets review - Q3 2017

A review of equity and bond markets in Q3 2017, when global economic data remained upbeat and the Federal Reserve said it would start to reduce its balance sheet.


Investment Communications Team

Investment Communications Team

  • Global equities posted a quarter of solid gains in Q3. Economic growth stayed in something of a “Goldilocks” zone overall, with stable expansion and benign inflation backed by positive earnings releases.
  • The S&P 500 rose over the quarter amid some supportive macroeconomic data, a robust quarterly reporting season and further weakness in the US dollar.
  • Eurozone equities advanced against a backdrop of positive economic data. The possibility that the European Central Bank (ECB) could soon reduce its stimulus measures continued to be a focus for the market.
  • The UK’s FTSE All-Share index also rose, led by the resources sectors as both industrial metal and crude oil prices recovered.
  • Japanese equities also posted gains amid improving economic data. Politics took the headlines as Prime Minister Abe called an election to be held in October.
  • Emerging markets outperformed. Brazil was the strongest index market amid some reform progress, coupled with a reduced prospect of a return for the leftist Workers Party in the 2018 elections.
  • Bond yields were little changed over the quarter, reflecting a largely unchanged global economic backdrop. Corporate bonds made positive returns, outperforming government bonds.