Quarterly markets review - Q1 2017
An overview of markets in Q1 2017 when an upturn in global economic data boosted stockmarkets.
- Global equities delivered robust gains in the first quarter amid an upswing in global economic data. Emerging market equities were particularly strong while bond markets saw more mixed performance.
- US equities advanced to fresh all-time highs, supported by positive economic data and President Trump’s plans to cut taxes and regulations. The Federal Reserve raised rates by a further 0.25%.
- Eurozone equities delivered robust gains amid upbeat economic releases and receding political worries following the win for the centre-right in the Dutch elections.
- UK equities gained, supported by solid corporate results and merger & acquisition activity. Article 50 was triggered at the end of the period, signalling the formal start of the process to leave the EU.
- Japanese stocks saw positive but muted returns with the yen gradually appreciating over the quarter.
- Emerging markets registered a robust return. An upturn in global growth and a lack of follow-through on protectionist trade policy from the Trump administration supported risk appetite.
- In bond markets, high yield corporate bonds performed particularly well, while government bonds were more mixed.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.