Schroders - Overview of markets in August 2014

– Global equities delivered positive returns in August as encouraging signals regarding the health of the US economy offset worries over geopolitical tensions and weaker data from the eurozone. Emerging market equities performed in line with their developed world counterparts.

– In the US, the S&P 500 reached a new all-time high, buoyed by stronger macroeconomic data and merger & acquisition activity. Second quarter GDP growth was upwardly revised to 4.2%.

– Eurozone equities posted positive returns, supported by speculation over the possibility of quantitative easing. Macroeconomic news from the single currency area was generally disappointing.

– Japan delivered negative returns amid disappointing macro data as well as some yen strength early in the month.

– Emerging markets posted positive returns. Emerging Latin America was the strongest region, supported by hopes that Brazil’s forthcoming elections could produce a change of government.