2 Jul 2013
Flash: June recap reveals poor performances across the board – Deutsche Bank
FXstreet.com (New York) - The first half of 2013 will be remembered as a fascinating half with Developing Markets (DM) equity markets generally outperforming but fixed income markets suffering across the board, note Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
June itself was a pretty poor month for markets with virtually all financial assets finishing the month lower. Indeed, all except Oil posted negative returns last month. We also saw EM (debt and equities) correct further as the asset class continues to reprice itself on the back of a higher US government yield, fundamental worries and with it outflows.
Relative to EM debt, DM credit has held up relatively well in a rising yield environment even though we saw credit excess returns moderately in the red in June. According to the analysts, “Oil aside the commodity complex endured a challenging time in June with precious metals falling sharply on the back of Fed taper talks and perhaps concerns with regards to Chinese growth.”
June itself was a pretty poor month for markets with virtually all financial assets finishing the month lower. Indeed, all except Oil posted negative returns last month. We also saw EM (debt and equities) correct further as the asset class continues to reprice itself on the back of a higher US government yield, fundamental worries and with it outflows.
Relative to EM debt, DM credit has held up relatively well in a rising yield environment even though we saw credit excess returns moderately in the red in June. According to the analysts, “Oil aside the commodity complex endured a challenging time in June with precious metals falling sharply on the back of Fed taper talks and perhaps concerns with regards to Chinese growth.”