Monthly Market Report - June 2017

17th May 2017

With commentary from David Stevenson

It’s been a funny old month for financial markets. In the table below I’ve highlighted a bunch of major indices and markets from around the world. If you look at the top two indices in the list, the FTSE 100 and the S&P 500, you’ll see that in price returns terms’ it’s been relatively quiet, with the FTSE falling back slightly, and the S&P 500 slightly pulling ahead. This lack of turbulence is reflected in the VIX index which tracks the ups and downs in the price of leading American blue chip stocks. As we discuss later in this report, this VIX index has collapsed in value and is now near medium term historic lows.

But once we look at a wider set of markets, we can see some much more brutal moves up and down! Oil prices have collapsed (again) and prices for a barrel of Brent have gone below $50. Gold prices – also discussed in this report – have also slipped noticeably. Many emerging markets have also had a tough month, with Chinese shares down just under 8%. By contrast we’ve seen some big upward moves for European markets. The CAC 40 has benefitted from the Macron effect and is up 6.69% over the month, 12.58% over the last three months and 25% over the year. The benchmark German index, the DAX, has also surged in value as confidence in the Eurozone improves markedly. Intriguingly the Japanese markets – also featured in this report – have surged back into life, with the Nikke 225 up 15% over the last six months. The big message from this short journey through global markets? Although volatility levels have subsided, we’re seeing a big dispersion in returns from around the world, and between different asset classes.

Download the full Monthly Market Report here.

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