Aug 10

Duration rally

After a weak June, global equity markets bounced strongly in July with the ASX200 up 5.7% and the MSCI World up 8.0%.Contributing to the
move was a rally in long duration bonds (yields down), which we discuss later. In equities the biggest lift was seen in interest rate sensitive sectors with IT +15%, Real Estate +12% and financials +9%. The Materials sector had led the sell-off in June and remained the weakest sector in July down -0.7%. Concerns over the outlook for global economic growth continued to see metals prices under pressure. Iron ore was the worst of the major commodities, down 17.5% in the month.

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