GTC WM Trendline – March 2017
Global: Growth returns
A strengthening global economy, coupled with the potential pro-growth effects of President Trump’s fiscal stimulus plans, continued to drive markets in the first quarter of 2017.
Global equities performed strongly with the MSCI World Equity Index returning 6.53% in Dollar terms. Likewise the MSCI Emerging Markets Index provided robust returns over the quarter returning a spectacular 11.49% in Dollar terms. Unfortunately this stellar performance did not translate into our local equity market which was beset by controversial political developments.
Global bond markets were impacted by the Federal Reserve’s widely anticipated decision to raise interest rates by 0.25% in March, as well as an indication from the European Central Bank that it foresaw less need for an accommodative policy going forward but that it would maintain the current stimulus package until the end of 2017. What became evident from these moves was that global re ation was underway and that a shift to global monetary policy normalisation continued. US equity markets continued to shine with the S&P500 returning a buoyant 6.1%. Incoming economic data was indicative of a growing economy with non-farm payrolls re ecting continuing increases in employment numbers.
