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.

Developed equities’ renewed outperformance of emerging markets stocks continued in May, as nearly all developed markets finished in the black for the month, while many emerging markets posted losses.

The recovery in risk assets that began in mid-February bifurcated in April. Commodities and commodity-related assets generated especially strong gains; the rally in global equities fizzled by comparison.

First quarter saw most global risk assets complete a round-trip retreat and recovery as heightened risks to financial markets emanating from China and commodity markets were met with fresh policy responses.

February’s market performance was a tale of two halves, with global risk assets experiencing a steep decline over the first two weeks before rallying to erase most of these losses.

The new year began with one of the worst starts to a calendar year for global equities, as markets fell sharply in the first three weeks of January before paring some losses into month-end.

Fourth quarter ended with highly anticipated central bank policy action on both sides of the Atlantic. The US Federal Reserve announced, as expected, its first rate increase since the global financial crisis, while the European Central Bank’s (ECB) expanded quantitative easing program disappointed investors by meeting, but failing to exceed, market expectations. The broad relief…

November brought renewed US dollar strength and commodity price weakness as some better-than-expected recent US economic data and hawkish comments from the US Federal Reserve highlighted the disparity between a seemingly healthy US economy and economic challenges abroad. After a strong October, global developed markets equities posted modest gains in local currency terms, led by…

October saw a strong rally in risk assets as accommodative stances from major central banks, more stable commodity prices, and reasonable earnings releases supported investors’ renewed risk appetites.

Market volatility notably increased in the third quarter, largely driven by investors’ growing concerns over China’s slowing economy and the negative implications for global growth, inflation, and asset prices. The US Federal Reserve’s decision to continue holding rates at the zero bound, citing China-related developments, further contributed to the market’s uncertainty. Since late May, global…