First quarter saw a continuation of the equity rally. Global equities were led by emerging markets; developed markets counterparts underperformed despite both UK and US stocks touching all-time highs during the quarter.

February saw the reflation trade continue for equities but not for other asset classes. In recent weeks, equity and bond markets have seemed of two minds with respect to the outlook.

The strong reflation trends in markets that were accelerated by the US election outcome were more muted in January as investors digested the change in administrations and some reversals were observed.

Fourth quarter continued the reflationary trends that began driving global financial markets in July as the outcomes of the US election and OPEC summit in November and the US Federal Reserve meeting in December reinforced the reflation theme.

The US elections and the OPEC summit were major factors driving global market performance in November, with the outcomes of both reinforcing the reflation trade that began over the summer.

Global markets wobbled in October as most asset classes declined. On a broad basis, both equities and bonds were negative, with global government bonds underperforming equities as bond yields rose sharply.

Third quarter turned out to be a breeze for global risk assets. Concerns sparked by the UK’s historic “Brexit” vote heading into the quarter were allayed by central bankers’ decisive statements and actions in the days and weeks following the referendum, which reassured markets that monetary policy would remain highly accommodative, and by the new UK government’s indications that it would not rush into exit negotiations.

Markets were mostly subdued in August as some measures of equity market volatility dropped against a backdrop of seasonally depressed trading volumes and supportive monetary policy announcements.

July saw global equities continue to shrug off the historic UK referendum decision to leave the European Union and post their strongest performance since March.

Second quarter ended on a volatile note for global capital markets as the uncertainty triggered by the United Kingdom’s vote on June 23 to exit the European Union weighed on the outlook.