Global equity markets saw mixed returns in July. In the US, the DJIA and S&P 500 posted positive returns of 4.5% and 1.2% respectively, supported by softer than expected inflation and labour market data. Conversely, the NASDAQ recorded a negative return of -0.7% as four of the Magnificent Seven stocks published underwhelming earnings reports. In Europe, the UK experienced stronger than expected economic growth with the FTSE 100 posting a positive return of 2.5% over the month. The Euro STOXX 50 posted a negative return of -0.3% amidst continued uncertainty around the French snap election. In fixed income markets, yields on US and UK 10-year bonds declined by 37 and 20 basis points, respectively, reflecting shifts in investor expectations on future interest rate cuts. In the UK, the Bank of England’s monetary policy committee agreed to an interest rate cut of 0.25% in August. Brent Crude oil fell by -3.3% due to weaker demand from China. The pound rose 1.7% and 0.6% against the US dollar and euro, respectively.

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