HFRU Performance Notes
In October, global financial markets declined as geopolitical risk spiked and uncertainty remained high regarding inflation, higher rates, and economic growth. Small-caps and technology led global equity market declines, while the UK, Hong Kong, and Korea led regional declines. US interest rates continued to rise as inflationary pressures remained salient; the US Dollar saw mixed performance and... Read More
In September, global financial markets posted sharp declines as bond yields increased under the expectation the US Federal Reserve may have additional rate increases in 2023. Growth, technology, and retail led global equities declines. Regional gains in the UK partially offset index declines led by Germany, France, and Hong Kong. The US Dollar strengthened against most currencies. Oil led... Read More
In August, global financial markets posted declines following two strong months of performance. Interest rates increased, and inflation data remained elevated but moderated from the historic levels seen in 2Q23. Cyclicals, Semiconductors, and Commodity sensitive areas led equity market declines; Hong Kong, Singapore, Germany, and the Netherlands led regional declines. US interest rates increased... Read More
In July, global financial markets posted strong gains – extending June gains – led by Technology and Energy as inflationary pressures eased and bank risks declined. Equities posted sharp gains led by Energy, Technology, AI, and Semiconductors; Italy, Turkey, and Hong Kong led regional gains. Interest rates were little changed as the yield curve inversion increased, with rising shorter-dated... Read More
Led by US technology, AI exposure, and receding bank risk, global financial markets gained in June. Investor optimism regarding peaking inflation and the moderation of interest rate increases also contributed. Technology, Semiconductors, and small cap stocks led sector gains. Italy, Spain, and France led European markets, while India and Japan led Asian gains. Short-duration interest rates... Read More
In May, global financial markets posted mixed performance with gains in Technology and AI equities offset by declines in commodities, higher interest rates, and ongoing concerns regarding economic growth in 2023. Technology equities led gains with strong earnings from Nvidia boosting semiconductor and AI-related equities. Energy and Financials led declines through Financials volatility which... Read More
In April, global financial markets posted mixed performance as bank risk and volatility accelerated into month end. US equities were mixed, with gains in Cyclicals and Healthcare offset by declines in Technology and Small-caps; France, Japan, Australia, and the UK led regional gains. Interest rates rose across most maturities as the Dollar fell against the Euro, Swiss Franc, and British Pound... Read More
In March, global financial markets posted mixed performance dominated by bank closures and concerns about the stability of financial institutions; UBS agreed to acquire Credit Suisse with the support of Swiss and central banks. Asset classes traded in wide and volatile ranges throughout the month with equities paring steep intra-month declines into month end. The strength in the Technology sector... Read More
In February, global financial markets declined as investors positioned for continued inflation, higher interest rates, and the possibility of a global economic recession. Global equity markets posted mixed performance, with declines led by large-cap, Technology, and Commodity sensitive sectors. European gains were led by the United Kingdom, France, and Germany while Asian equites declined.... Read More
In January, global financial markets surged to begin 2023 with gains driven by falling interest rates and a slowing of the inflationary pressures that defined 2022. Global equity markets surged led by US Technology, Growth, and Cyclicals; regional gains were strong across Emerging Markets, Developed Europe, and Asia. Interest rates declined on slowing inflationary pressures despite expectations... Read More
In December, global financial markets declined to conclude sharp losses for 2022 as the Federal Reserve raised interest rates, increasing the likelihood of an economic recession in 2023. The US led Equity market declines with Technology posting steep declines for the month and year; European and Asian indices posted more moderate declines. Interest rates rose as the Federal Reserve indicated... Read More
In November, global financial markets gained as inflation data showed signs of moderation and the Federal Reserve suggesting a slowdown of future interest rate increases. Global equity markets gained led by Technology and Telecom sectors; European gains were led by Germany & Italy, while Hong Kong & Taiwan led Asian gains. Interest rates posted sharp declines led by shorter dated... Read More
In October, global financial markets posted gains despite the continuation of generational inflation and expectations for further interest rate increases by the Federal Reserve. Equity gains were led by US large caps, with the DJIA surging to the strongest monthly gain in over 40 years and the S&P 500 and Nasdaq also posting positive performance for October. Italy, France, Germany, &... Read More
In September, global financial markets posted steep declines as the Federal Reserve increased interest rates extending prior months' losses on accelerating inflation, expectations for global additional interest rate increases, and expectations for a global economic recession. Global equity markets posted sharp losses led by Technology, Telecom, and Energy; regional declines were led by Germany,... Read More
In August, global financial markets fell, reversing early month gains on continued concerns regarding generational inflation, increasing interest rates, and weakening economic growth. Global equity markets posted broad-based declines led by Technology. European declines were led by Germany & France while Asian equities were mixed. Interest rates increased as the Federal Reserve outlined that... Read More
In July, global financial markets gained following the worst 1H of a calendar year in over 50 years despite the US economy entering a recession and the Federal Reserve raising interest rates. Global equity markets surged for the month, led by Technology & Energy, while France, India, and the Netherlands led regional gains. Bond yields declined across all maturities regardless of the Fed... Read More
In June, global financial markets posted steep declines marking the worst 1st half of a year in the last 50 years as inflation accelerated and the US Federal Reserve increased interest rates to curb said inflation. Equity markets posted steep, broad-based declines across all sectors led by Cyclicals, Technology, and Energy; regional equity market losses were led by Korea, Italy, and Germany. The... Read More
In May, global financial markets ended the volatile month with mixed and little changed results. Although, global equities recovered steep intra-month losses into month end as equities traded in a wide range as a result of continued inflationary pressures and expectations for a slowing economy. Energy and Semiconductors led sector gains while Germany, China & Russia led regional gains.... Read More
In April, global financial markets posted steep declines driven by concerns regarding inflation, higher interest rates, and the ongoing military conflict in Ukraine. Most US equity indices posted the worst month since the beginning of the global coronavirus pandemic, while the Nasdaq posted the worst monthly decline since 2008. US equity markets declines were led by Technology, Semiconductors,... Read More
In March, global financial markets posted mixed performance as interest rates increased, with equities paring declines for the quarter despite the continuation of generational inflationary pressures as well as the military conflict following the Russian invasion of Ukraine. Global equity markets gained led by Energy, Commodities, and Technology; European & Asian equities were mixed while the... Read More
In February, global equity markets posted declines as geopolitical tensions increased sharply because of the Russian military invasion of Ukraine and global inflationary pressures continuing to mount. Equity market declines were led by Large-cap & Technology, while developed market regional declines were led by Germany & France. Russian equity markets lost one-third of their value before... Read More
In January, global financial markets surged to begin 2023 with gains driven by falling interest rates and a slowing of the inflationary pressures that defined 2022. Global equity markets surged led by US Technology, Growth, and Cyclicals; regional gains were strong across Emerging Markets, Developed Europe, and Asia. Interest rates declined on slowing inflationary pressures despite expectations... Read More
Driven by concerns about rising inflation and interest rate increases by US Federal Reserve, global financial markets declined in January to begin 2022. Global equity market declines were led by US equities, with steepest declines across Technology, Cyclicals and Healthcare, which were only partially offset by gains in Energy. US interest rates increased across all maturities with shorter dated... Read More
Global financial markets gained in December to conclude a strong 2021, as Oil surged and equities recovered early intra-month declines from fears of spreading Omicron coronavirus variant. Global equity markets posted strong gains for the month, led by US & European large caps with strength in Energy, Cyclical and Healthcare. US interest rates increased as supply chain shortages continued to... Read More
Investors reduced risk late in the month on rising uncertainty regarding the Omicron coronavirus variant causing global financial markets to decline in November. Global equity markets declined led by small caps and Energy sectors, European declines were led by Germany & Spain while Asian declines were led by Hong Kong & Singapore. Interest rates declined on flight to quality with longer... Read More
As inflationary pressures continued to build and employment markets remained tight, global financial markets gained for October and recovered most of the prior month declines. Global equity market gains were led by US large caps; Energy & Commodity-sensitive led sector gains; European equity gains were led by France, Italy and the Netherlands, while Asian equities were mixed. US interest... Read More
Global financial markets declined in September, as interest rates increased and efforts to pass a large stimulus bill remained stalled. Global equity markets declined led by Technology, though declines were spread across most sectors and regions. US interest rates increased on expectations for reduction of bond purchases by the US Federal Reserve as signs inflation continued to build, while the... Read More
Global financial markets gained in August, recovering intra-month declines on continued virus variant concerns and increased geopolitical uncertainty associated with instability in Afghanistan. Equity markets gained led by Technology, Healthcare and Financials, with regional gains led by India, China and the Netherlands. Interest rates increased slightly on expectations for US Federal Reserve... Read More
Strong technology earnings were partially offset by renewed concerns regarding the spread of new virus variants resulting in mixed global market performance in July. US large caps posted gains while small caps led declines with sector gains led by Energy & Healthcare. European equities posted small gains while Asian equities posted modest declines. US interest rates fell as credit tightened... Read More
Equities traded in a wide range and inflationary pressures remained salient as Global financial markets gained in June. US Equity markets gained led by Technology & Energy, while European & Asian markets posted mixed performance. Interest rates declined while the US Dollar gained on moderation of labor market/employment strength. Commodity gains were led by Energy, including Oil &... Read More
Global financial markets posted mixed performance in May, as many countries & economies began to emerge from the pandemic quarantine and inflationary pressures began to arise. Global equity markets were also mixed with gains in large cap and Energy sectors offset by weakness in Technology; European and Asian equities also gained. US interest rates were basically unchanged while inflationary... Read More
Global financial markets gained in April driven by surging commodity prices, positive corporate earnings and continued progress on vaccination administration in the US, as well as continued strong employment and housing data. Equity markets gained across most sectors led by Technology; Energy, commodity-linked and Financial sectors all posted strong gains. US interest rates posted a narrow... Read More
Global financial markets gained in March, extending the prior month gains despite rising bond yields and expectation for inflation. Equity markets posted gains across most sectors & regions, led by US large caps including Non-Cyclicals, Financials & Telecom, while regional gains were led by Germany, Italy & France. US interest rates increased on expectations for economic growth in... Read More
Global financial markets posted mixed performance in January, as early month gains on resolution of the US political transition were reversed through volatile trading dominated by strong retail demand in deep value equities. Technology & small cap led US gains while large cap & cyclicals led declines; by regions France & Germany led declines while Asian markets were also mixed. US... Read More
Global financial markets extended gains in December to conclude a strong and volatile 2020, as investors focused on continued rising coronavirus cases, rollout of several vaccines and the resolution of the US senate election; cryptocurrencies extend the recent surge. US equities gained led by small caps, while Technology, Energy and Cyclical sectors all led gains; European & Asian equities... Read More
Global financial markets surged to record highs in November as uncertainty regarding the US election declined and optimism regarding advancements on coronavirus vaccines accelerated. Global equity markets surged across most regions with strong gains in most sectors led by Cyclicals, Energy and Financials with regional gains across US, UK, France, Italy and Japan. US interest rates declined as the... Read More
Global financial markets declined in September as investors focused on upcoming US elections as well as continued challenges to reopening businesses as a result new virus cases. Led by Energy & Financials sectors, global equity markets declined for the months, though pared intra-month declines into month end. US interest rates declined on near term uncertainty and commitment of US Federal... Read More
Global financial markets posted gains for June, trading in a wide intra-month range on high realized volatility as optimism over economic reopening was offset by concerns about a second wave of coronavirus contagion. US equities gained for the month led by Technology, Energy & Commodity exposures, while European & Asian equities also gained. US interest rates were little changed for the... Read More
Global financial markets gained in May let by Energy, small cap and growth sectors, extending the strong recovery from the prior months as businesses began the process of reopening form the coronavirus pandemic quarantine. Energy equities surged as Oil posted record monthly gains in May, small cap, growth, technology and commodity sensitive all gained as risk tolerance continued to increase;... Read More
Global financial markets posted steep losses in February driven by uncertainty regarding the contagion of the coronavirus; US equities posted sharp losses across all indices, sectors and regions Interest rates plunged to record lows on flight to quality, while investors also positioned for additional central bank stimulus measures. Energy commodities posted sharp losses on expectations for... Read More
Global financial markets declined in January surrendering intra-month gains into month end as concerns about the spread of coronavirus drove a volatility increase into month end. Equities posted declines led by Chinese equities and Energy exposures; European equities also declined while US equities surrendered intra-month gains into month end. US interest rates declined on flight to quality... Read More