Global equity markets continued on their upward trend throughout June. In the UK, despite rising cases and a delay to the final easing of restrictions, the FTSE All Share TR index still managed a positive return of 0.16% during the month.

The US equity market performed strongly with the S&P 500 index delivering 2.33%, aided by Microsoft becoming only the second American company after Apple to reach a market value of $2 trillion.

As global economic recovery continues, inflation figures are picking up. In the UK, the latest data from the ONS shows that the Consumer Prices Index increased from 1.6% in April to 2.1% in May, while in the US, inflation has reached 5% for the first time since 2008.

Full round-up of June market performance

In the UK, the FTSE 100 index gained 0.41%, while medium sized companies, measured by the FTSE 250 ex IT index and smaller companies, measured by the FTSE Small Cap ex IT index, returned -1.79% and 0.94% respectively. In the US, the S&P 500 USD index climbed 2.33% while in Europe the Eurostoxx 50 EUR index rose 0.70%. Japanese stocks measured by the Topix JPY index put on 1.19%.

Emerging markets in general performed well during the month, with the MSCI Emerging Markets index rising 0.87% in local currencies. Chinese equities measured by the MSCI China local index gained 0.35%. Latin American equities, measured by the MSCI Latin America local currency index, slipped 0.22% while Indian stocks, measured by the Nifty 50 INR PR index, lifted 0.89%.

In the fixed income market, UK government bonds, measured by the FTSE Gilts All Stocks index, climbed 0.72%. Long dated (over 15 years to maturity) gilts rallied 1.32%. Sterling denominated corporate bonds, measured by the Markit iBoxx Sterling Corporates index, rose 0.89%. In the high yield market, the Bank of America Merrill Lynch Sterling High Yield index picked up 0.72%.

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, surged 4.29%. This was led by oil, as the dollar price of a crude oil futures contract ramped up 10.78%. However the precious metals both struggled as the S&P GSCI Gold and Silver indices declined 7.01% and 6.60% in USD respectively. Meanwhile in the agricultural markets, corn and wheat prices grew 9.63% and 1.21% in USD respectively.

In the currency markets, the pound had a mixed month as it picked up 0.25% against the euro but depreciated 2.52% versus the US dollar and 1.40% against the yen.