Global equity markets got off to a very poor start in August and finished down for the month. This may sound severe, but trading volumes were thin (holidays) and lacked any real impetus. The backdrop remained the same; tweets about trade but no talks, Brexit, civil unrest in Hong Kong and impotent central bank policy.
If anything, the trade war situation has deteriorated, but the real effects of increased uncertainty will likely be felt down the line. Corporates are becoming more reluctant to invest as uncertainty increases and their knowledge of future global supply chains diminishes.
On the other hand, August 2019 was the best month for global bonds since 2008. In one way that’s actually pretty incredible, given that global bond yields were already collectively at their lowest level in history. The alternative view is that it was almost inevitable.
Find out why in our full ‘Monthly Market Update’ by clicking here.
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