Capital markets performance was mixed in August as several exogenous events caused some risk aversion to return to global markets.

Capital markets performance was generally positive in July, bolstered by a weaker dollar and upbeat economic data.

Second quarter saw a continuation of many first quarter themes. Global equities rallied further, led by emerging markets, while US stocks underperformed developed counterparts in USD terms despite hitting all-time highs.

Capital markets performance was generally positive in May, with France’s market-friendly presidential election outcome and the stronger-than-anticipated earnings results observed across regions serving as important drivers.

Geopolitical developments were important drivers of capital markets performance in April, with the French presidential election and growing tensions with North Korea weighing on market sentiment for most of the month until easing somewhat in the final week.

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.