June 2022

• Global markets declined sharply in June as inflation surged further and central banks accelerated monetary tightening efforts.
• Major equity indices entered bear market territory amid rising recession fears and sharply higher bond yields.
• The Federal Reserve delivered its largest interest rate increase in decades in response to persistently high inflation.
• Technology, consumer and cyclical sectors experienced significant losses globally.
• Commodity prices remained volatile as investors weighed supply shortages against slowing growth expectations.
• Emerging markets continued facing pressure from tighter financial conditions and stronger U.S. dollar trends.

Asia (ex. Japan)

Asian markets outside Japan weakened significantly during June as slowing global demand, rising interest rates and continued Chinese economic weakness pressured investor sentiment across the region.

Although China began easing some lockdown restrictions and introduced additional stimulus measures to support growth, investors remained cautious regarding the sustainability of recovery momentum and broader global demand conditions.

Europe

European equities declined sharply during June as inflation surged across the region and recession concerns intensified due to rising energy prices and ongoing disruptions caused by the war in Ukraine.

The European Central Bank confirmed plans to begin raising interest rates while governments introduced measures aimed at cushioning households from soaring energy costs.

United States

U.S. equities experienced heavy losses during June as inflation reached multi-decade highs and the Federal Reserve implemented its most aggressive tightening measures in decades.

Technology and growth stocks remained under severe pressure as Treasury yields rose sharply. Investors increasingly feared that rapid interest rate increases could trigger economic recession during the coming year.

United Kingdom

UK equities weakened during June as inflation continued accelerating and economic growth expectations deteriorated. Consumer-focused sectors experienced increased pressure due to rising living costs and weakening confidence.

The Bank of England raised interest rates further while warning of slowing economic activity and increasing recession risks.

Japan

Japanese equities declined during June as global market weakness and slowing international demand affected exporters and cyclical sectors.

The yen weakened further against the U.S. dollar as the Bank of Japan maintained ultra-loose monetary policy despite tightening by most major global central banks.

Emerging Markets

Emerging markets remained under pressure during June as rising U.S. interest rates, stronger dollar conditions and slowing global growth reduced investor appetite for risk assets.

Several emerging economies faced increasing inflation and capital outflow pressures, though commodity-exporting nations remained relatively supported by elevated raw material prices.

Commodities

Commodity prices remained highly volatile during June as investors balanced supply shortages against rising fears of global recession and weakening demand. Oil prices fluctuated sharply but remained elevated overall.

Industrial metals weakened significantly due to slowing Chinese growth and recession concerns, while gold prices remained relatively stable amid competing pressures from inflation and rising interest rates.