Courtiers Wealth Management
Courtiers Wealth Management

News & Insights

June 2021 – Market Update


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Most equity markets delivered positive returns in May, as economies around the world began to put the effects of the pandemic behind them. In the UK, there was a further easing of restrictions, with hospitality venues allowed to open indoors.

Retail sales grew 9.2% in April and the Consumer Prices Index (CPI), measured by the Office for National Statistics, returned to 1.5% for the first time since last March. The FTSE 100 index climbed a further 1.1% during the month while smaller UK companies measured by the FTSE Small Cap ex IT index enjoyed a 3.2% boost.

In emerging markets India was the standout performer, with equities rallying strongly on the Indian Stock Exchange. The Nifty 50 index surged 6.5% in its local currency (INR) during the month, pointing towards the possibility of a strong Indian rebound similar to the strong recovery seen in China last year.

Overall, emerging markets performed well during the month, with the MSCI Emerging Markets index rising 1.37% in local currencies. Chinese equities measured by the MSCI China local index returned 0.55%. Latin American equities, measured by the MSCI Latin America local currency index, gathered 5.47% and Indian stocks, measured by the Nifty 50 INR PR index, jumped 6.50%.

Meanwhile, it was a disappointing month for US tech stocks amidst inflation fears. In US dollars, Amazon and Apple declined 7.1% and 5.2% respectively, while Tesla slumped 11.9%. The S&P 500 index, which measures the largest companies in the US, saw one of the smallest gains among equity indices in May, with just a 0.7% return in USD, while the tech-heavy NASDAQ composite index ended the month down 1.5% in USD.

Looking at the performance of the world’s major stock markets in May, in the UK, the FTSE 100 index gained 4.08%, while medium and smaller companies, measured by the FTSE 250 ex-IT index and the FTSE Small Cap ex IT index respectively, rose 1.60% and 3.19% respectively. In the US, the S&P 500 USD index climbed 0.55% while in Europe the Eurostoxx 50 EUR index gained 2.53%. Japanese stocks measured by the Topix JPY index put on 1.38%.

In the fixed income market, UK government bonds, measured by the FTSE Gilts All Stocks index, lifted 0.43%. Long dated (over 15 years to maturity) gilts climbed 0.65%. Sterling denominated corporate bonds, measured by the Markit iBoxx Sterling Corporates index, rose 0.22%. In the high yield market, the Bank of America Merrill Lynch Sterling High Yield index picked up 0.19%.

Commodities had a positive month overall. The S&P GSCI USD index, which consists of a basket of commodities including oil, metals and agricultural items, increased 2.52%. The dollar price of a crude oil futures contract ramped up 4.31%. The precious metals both saw large gains as the S&P GSCI Gold and Silver indices surged 7.66% and 8.28% in USD respectively, but in the agricultural markets corn and wheat prices slumped 11.25% and 10.64% in USD respectively.

In the currency markets, the pound had a strong month as it appreciated 2.65% against the US dollar, 1.27% versus the euro and 3.20% against the yen.

Important Information

Issued by Courtiers Asset Management Limited, CAM0421563. Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority – Register No: 616322. Address: 18 Hart Street, Henley on Thames, Oxfordshire RG9 2AU. Tel: 01491 578368

This communication is for information purposes only and should not be relied upon in making an investment decision. Past performance is not a reliable indicator of future returns. The value of your investments and any income you take from them may fall as well as rise and is not guaranteed. You might get back less than you invest. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. Certain types of funds might carry a greater investment risk than other investment funds. 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 via the Courtiers Funds section of the Courtiers website.

The views expressed by Courtiers in this summary and any supporting videos produced by Courtiers are reached from our own research. Courtiers cannot accept responsibility for any decisions taken as a result of reading this document or watching any featured video. Investors are recommended to take independent professional advice before effecting any transactions. Where returns are quoted in non-sterling currency denominations the sterling return may increase or decrease as a result of currency fluctuations.

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