August was a positive month for global equity markets. The S&P 500, FTSE 100, and Euro STOXX 50 were up 2.4%, 0.8%, and 1.8%, respectively and measured in their local currencies. The Nikkei 225 fell 1.1% due to overreaction following the Bank of Japan’s interest rate hike coupled with concerning US jobs data which sent shockwaves market wide. This was swiftly quelled at the prospect of lower interest rates in the US and a flurry of positive earnings results. In fixed income markets, 10-year bond yields were mixed in the US and UK, falling 13 basis points and rising 4 basis points, respectively. Brent Crude Oil prices dropped 3.7% amid Middle East tensions and weak demand in the US and China. Gold rose 2.6% on potential US rate cuts and its use as a hedge against economic instability. The pound gained 2.1% on the US dollar driven by strong UK economic data particularly in the manufacturing sector coupled with fears of a US recession.

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