capital markets commentary

Market Update as of August 31, 2021

September 2021

Despite persistent concerns related to elevated inflation expectations and rising infections from the Delta variant, global equities pushed higher across the board in August as a result of strong corporate earnings and a broadening economic recovery. Bond yields rebounded higher in August but are still trading well below recent highs from earlier in the year. Energy prices declined as the Delta variant threatens to slow the global demand recovery.

Market Update as of July 31, 2021

August 2021

Despite market concerns regarding the rise of infections from the Delta variant worldwide, the global economic recovery persisted in July. Benefiting from a decline in bond yields, growth stocks and fixed income securities were strong performers. Regulatory crackdowns within China, particularly in the technology space, resulted in weak performance in the emerging markets equity index. Economic recovery and inflation concerns resulted in another good month for commodities.

Capital Markets Update Q2 2021

July 2021

Global stock and bond markets generated broad gains in the second quarter, supported by accelerated vaccination programs and the roll back of mobility restrictions in most developed economies. Economic data was strong, especially within the U.S., with a significant rebound in GDP, strong corporate earnings, and the potential for another fiscal boost in the form of an infrastructure spending package. At the same time, escalating inflation pressures and uncertainty on the pace of Fed action hampered investor enthusiasm. Soothing comments from Fed officials helped to anchor market sentiment at the end of June as indicated by the S&P 500 Index, which closed the quarter at an all time high.

Market Update as of June 30, 2021

July 2021

The domestic equity markets closed out the first half of the year with sharp advances, particularly within technology and growth stocks. International returns were muted partly due to sluggish vaccination programs across many regions. Within fixed income, bond yields continued to retreat in June, aiding returns. Energy markets were strong once again, coinciding with a pick-up in demand and fast-improving travel trends.

Market Update as of May 31, 2021

June 2021

The domestic equity markets were marginally positive after a choppy month, while their international counterparts experienced relatively higher returns. Commodity markets continued to trend upward as oil hit a 52-week high in May and gold had a price rebound. Fixed income markets experienced a more risk-on tone as corporate credit and emerging market debt lead the way.

Market Update as of April 30, 2021

May 2021

Investment returns were strong in April as equities were elevated by robust quarterly corporate earnings, while fixed income returns were assisted by bond yields that edged lower. Commodities have continued to rally in 2021 as prices for key raw materials have climbed sharply, fueled by announced post-pandemic recovery and infrastructure programs as well as growing demand from China.

Capital Markets Update Q1 2021

April 2021

Despite periods of significant volatility in the first quarter, global equities and risk assets posted positive returns, while fixed income markets were broadly negative in the face of rising interest rates. The “reflation trade”, which began in late 2020, continued into the first quarter of 2021 driven by increased vaccine availability and another round of U.S. stimulus measures. Cyclical sectors such as energy, financials and industrials, along with small companies, benefited the most in this environment. Conversely, large technology companies, defensive sectors and healthcare stocks generally underperformed the market in the first quarter.

Market Update as of March 31, 2021

April 2021

Equity markets were largely positive in February. Rapidly rising treasury yields and continued optimism surrounding post-pandemic normalization resulted in a rotation towards value and small-cap equities. The steeping yield curve pushed fixed income prices lower, particularly longer duration bonds. Within commodities, tighter supplies and weather events across Texas contributed to energy returns while economic recovery projections have boosted industrial metals.

Market Update as of February 28, 2021

March 2021

Equity markets were largely positive in February. Rapidly rising treasury yields and continued optimism surrounding post-pandemic normalization resulted in a rotation towards value and small-cap equities. The steeping yield curve pushed fixed income prices lower, particularly longer duration bonds. Within commodities, tighter supplies and weather events across Texas contributed to energy returns while economic recovery projections have boosted industrial metals.

Market Update as of January 31, 2021

February 2021

Global markets opened the year mixed, affected by uncertainty and volatility surrounding the retail investor frenzy and an unclear outlook for deploying coronavirus vaccines. The equity market was paced by U.S. small cap and emerging markets. Rising yields hampered fixed income returns while the energy market experienced a strong month as a result of tighter supplies.