Courtiers Wealth Management
Courtiers Wealth Management

News & Insights

August 2021 – Market Update

Global equity markets have remained resilient despite the ongoing day-to-day volatility caused by the Covid-19 pandemic and fears surrounding inflation. On 19th July, the MSCI World Net TR index suffered its biggest one-day drop since February as investors worried that a resurgence in Covid cases would delay the economic recovery. However the index still ended the month in positive territory.

One market which has been struggling recently is China. The MSCI China CNY index has lost nearly 14% during July. This is due to a series of strict new regulatory measures being imposed on companies by Chinese authorities. Among those targeted have been education firms and the Chinese tech giants – particularly those listed overseas. The NASDAQ Golden Dragon China USD Index, which comprises Chinese firms whose common stock is traded in the US, lost more than 20% in four days during the month and ended the month down 22%.

Meanwhile the US giant Amazon has been hit with a record $886.6 million fine by Luxembourg’s National Commission for Data Protection for allegedly breaking the EU’s rules on GDPR (General Data Protection Regulation). Amazon’s share price fell -7.6% on 30th July due to the news.

Full round-up of July market performance

In the UK, the FTSE 100 index moved 0.07%, while medium and smaller companies, measured by the FTSE 250 ex IT index and the FTSE Small Cap ex IT index respectively, returned 3.24% and 1.24% respectively. Concerns continued about the impact of rising levels of inflation, a subject we recently covered.  In the US, the S&P 500 USD index climbed 2.38% while in Europe the Eurostoxx 50 EUR index rose 0.75%. Japanese stocks measured by the Topix JPY index declined -2.18%.

Emerging markets were volatile during the month, with the MSCI Emerging Markets index dropping 6.05% in local currencies. Chinese equities measured by the MSCI China local index slumped 13.76% while Latin American equities, measured by the MSCI Latin America local currency index, lost 2.21%. However Indian stocks, measured by the Nifty 50 INR PR index, increased 0.26%.

In the fixed income market, UK government bonds, measured by the FTSE Gilts All Stocks index, rose 2.77%. Long dated (over 15 years to maturity) gilts rallied 5.49%. Sterling denominated corporate bonds, measured by the Markit iBoxx Sterling Corporates index, lifted 1.43%. In the high yield market, the Bank of America Merrill Lynch Sterling High Yield index picked up 0.42%.

Commodities mostly had a positive month. The S&P GSCI USD index, which consists of a basket of commodities including oil, metals and agricultural items, gained 1.57%. The price of a crude oil futures contract rose 0.65% while copper futures gained 4.33%. In the precious metals markets, the S&P GSCI Gold and Silver indices returned 2.35% and -2.47% in USD respectively.

In the currency markets, the pound appreciated 0.53% versus the US dollar and 0.41% against the euro but slipped 0.70% versus the yen.

Important Information

Issued by Courtiers Asset Management Limited, CAM0421587.  Past performance is not a reliable indicator of future returns. The value of investments, and the income from them, can go down as well as up and is not guaranteed. You may not get back the amount originally invested. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. Certain types of funds may carry a greater investment risk than others.

This communication is for information purposes only and should not be relied upon in making an investment decision. The views expressed by individuals and the business are based on market conditions at the date of issue and are subject to change without notice. The mention of any stocks or shares should not be taken as a recommendation to deal and does not take into account the individual investor’s investment objective or risk profile. Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor.

If you are interested in any of Courtiers Asset Management Limited’s range of funds or require any financial advice, please speak to a financial adviser.

Further details of the risks associated with investing in Courtiers Funds can be found in the Key Investor Information Document or Prospectus, copies of which are available on request or at www.courtiers.co.uk.

 

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