Equity markets had a modest performance in July as the US Federal Reserve lowered interest rates by 25 points for the first time in 11 years. Global equity markets had a mixed performance in July, with the biggest loser being the Emerging Market index, down by 1.2%. UK government bonds gained 2.2% as the global central banks set the tone for further monetary easing in the near future. UK corporate bonds performed better than their global counterparts as they returned 2.3%, compared to the 0.1% of the latter. The UK CPI inflation remained unchanged at 2% in June, while the RPI saw a 10 basis point decrease to 2.9%. Volatility remained under 10% amongst the developed economies for most of July.
Milliman Market Monitor London - 31 July 2019