Quarterly Markets Review Overview of markets in Q1 2018英文资料.pdfVIP

Marketing material Quarterly Markets Review Overview of markets in Q1 2018 Please note any past performance mentioned in this document is not a guide to future performance and may not be repeated. Highlights – Global equity markets declined in Q1 with investors unnerved first by concerns about the path of US interest rate rises and then worries over trade. Global bond markets reflected higher inflation, with most major government bond yields climbing. – US equities began the year strongly, boosted by tax reforms, but ended the quarter lower amid concerns over inflation and the impact of US-China trade sanctions. – Eurozone equities posted negative returns as worries over US rates and trade affected other markets. Italy’s election was inconclusive but had limited impact on the equity market. – UK equities were negatively impacted by sterling strength amid expectations that the Bank of England may lift rates sooner and faster than the market had previously anticipated. – Japanese equities followed a similar pattern to other global markets and ended the quarter lower. The heightened uncertainty resulted in a generally stronger yen against major currencies. – Emerging market equities outperformed, delivering a positive return in US dollars. Brazil gained amid expectations that former president Luiz Inácio Lula da Silva will be prohibited from participating in October’s presidential elections. – US Treasury yields rose markedly across the curve over the quarter. Corporate bonds made negative total returns and underperformed government bonds. US US equities began 2018 strongly, buoyed by ongoing strength in economic data, robust earnings and the confirmation of a major tax reform package. Indeed, macroeconomic prints remained broadly positive throughout Q1. US business confidence reached an unexp