Markets Extend Gains

• Shares in U.S. equity markets gained in Q2, despite declines in May due to increased concerns over the U.S.-China trade war. By the end of the quarter however, markets were supported by increasingly accommodative central banks and trade progress following the G20 Summit as both leaders agreed to get back to the negotiating table.
• International equities advanced in the quarter, experiencing a similar sharp drop to that of their U.S. counterparts in May, between gains in April and June. European Central Bank (ECB) President Mario Draghi signaled further monetary easing if the inflation outlook fails to improve, boosting Eurozone shares. Emerging market shares lagged their developed market counterparts as trade uncertainty weighed on Asian stocks.
• Core fixed income generated positive returns as heightened trade tariff concerns, lower growth, and inflation expectations resulted in declining long-term interest rates. During the quarter, the 10-year Treasury moved from 2.4% to 2.0%, and the 30-year Treasury moved from 2.8% to 2.5%. Concurrently, the Fed continued to communicate dovish guidance and signaled that a rate cut may occur as early as July.
• Oil markets experienced modest volatility on the back of global trade concerns and declining bond yields. However, markets eventually stabilized as OPEC extended production cuts and U.S. oil inventories moved lower. Conversely, gold benefited from many of the same global uncertainties during the quarter.

To view the second quarter reports, click on the links below:

• 2Q19 Global Positioning Statement™
• 2Q19 Global Equity Review
• 2Q19 Taxable Fixed Income Review
• 2Q19 Tax-Exempt Fixed Income Review
• 2Q19 Real Assets Review
• 2Q19 Private Equity Review