Last quarter we wrote that greater market volatility was expected given elevated values in some markets and the potential for a higher interest rate rise outlook. The quarter turned out to be even more volatile than we expected with a sharp market retreat triggered when the US Federal Reserve Bank suggested interest rates may need to be higher than markets were expecting. Conditions deteriorated further into the quarter with negative sentiment coming from the escalating US / China trade war, daily Trump tweets unnerving markets, the Brexit impasse, US government funding stalemate and also sharply lower energy prices. To add to the pressure high-volume market trading programmes exacerbated daily volatility particularly, in the US.

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Posted: Fri 18 Jan 2019