Across the general market the GBP returns for the quarter were positive (MSCI ACWI +6.8%) while the emerging markets had a tough period (MSCI EM -2.2%). The tech heavy Nasdaq 100 was up +14.0%, the FTSE 100 up +9.6% and Nikkei 225 +6.3%. The S&P 500 was +9.7% up. China the second largest economy traded negative -9.3% in the quarter.
Rate increases in the US lead the Dollar higher on positive job news added to inflation pressure in the US. The forecast for multiple further rate increases in the US into 2020 has meant more free cash flowing out of EM markets and into the Dollar priced assets, chasing this certainty.
