Global equity markets may reflect more clearly the evolving nature of global macro developments, according to Greg Gibbs, Analyst at Amplifying Global FX Capital.
“We started the year in a global synchronised economic recovery, and synchronised rise in global equity markets. Despite rising US rates, the USD was weak at the beginning of the year, approaching its lows since 2014 as investors increased their exposure to global markets and unwound currency hedges on Eurozone and UK assets.”
“In late-January, the bull-market for global equities ended abruptly. At least it did for all equities outside of the USA. Emerging market equities have trended steeply down since this date, and other developed markets outside of the USA have also fallen fairly persistently. The US equity market opened a wide performance gap over most of this year, finally being dragged lower by a weakening global trend in the last month.”