June 2018

• Global markets remained volatile in June as trade tensions escalated further between the United States and major trading partners.
• Technology and export-oriented sectors faced increased pressure globally.
• U.S. equities outperformed most developed peers due to strong domestic growth and earnings.
• Emerging markets continued experiencing capital outflows and currency weakness.
• Oil prices remained firm despite trade uncertainty.
• Central banks maintained gradual tightening approaches amid stable economic conditions.

Asia (ex. Japan)

Asian equities outside Japan declined during June as trade tensions between the United States and China intensified. Export-oriented economies and technology sectors experienced increased pressure from tariff concerns.

Chinese markets weakened notably as investors worried about slowing growth and trade disruptions, while India remained relatively resilient despite higher oil prices.

Europe

European equities weakened modestly during June as trade disputes and softer economic indicators affected investor confidence. Export-sensitive sectors, particularly autos and industrials, underperformed.

The European Central Bank announced plans to end asset purchases later in the year while maintaining low interest rates for an extended period.

United States

U.S. equities remained relatively strong during June as robust economic growth and corporate earnings continued supporting markets despite escalating trade tensions.

The Federal Reserve raised interest rates again while maintaining expectations for further gradual tightening. Treasury yields remained relatively stable.

United Kingdom

UK equities were relatively stable during June as commodity sectors benefited from firm oil prices while Brexit uncertainty continued limiting broader gains.

Economic growth remained moderate, while inflation conditions supported expectations for future Bank of England tightening.

Japan

Japanese equities weakened during June as global trade tensions affected exporters and manufacturing-related sectors.

The Bank of Japan maintained accommodative policies amid subdued inflation and moderate domestic growth conditions.

Emerging Markets

Emerging markets remained under pressure during June as stronger U.S. growth and higher interest rates contributed to continued capital outflows.

Currency weakness intensified across several economies, though Asian markets remained more resilient than parts of Latin America and Turkey.

Commodities

Commodity prices remained relatively firm during June despite escalating trade tensions. Oil prices were supported by supply concerns and geopolitical developments.

Industrial metals weakened further due to fears surrounding global trade and Chinese growth conditions.