Quarterly Market Round-up
Flash Stats - Q2 2023
11 Jul 2023
In our regular market round-up, we take a look at what's happened in Q2 2023.
Global equities rose over the quarter; buoyed by better-than-expected earnings and AI-inspired optimism around the technology sector. Meanwhile, bond markets recorded losses as sovereign bonds yields rose on the back of expectations of higher-for-longer interest rates being needed to quell persistent inflationary pressures.
Some of the headlines in the second quarter of 2023 include:
- Consensus forecasts for 2023 global GDP growth saw further upwards revisions in Q2, given unexpected resilience in labour markets and consumer spending. Nonetheless, with higher interest rates likely to weigh on consumer and business activity in the second half of 2023 and into 2024, growth forecasts remain relatively weak.
- Elevated inventories and weak global goods demand continue to bear down on the manufacturing sector. Meanwhile, consumer spending on services has been strong, supported by both the strength of labour markets and further drawdown from excess pandemic savings, which is now more focussed on services than goods. However, services growth has also started to slow, and June’s composite PMI data suggest the recent upturn is easing, particularly in the eurozone.
- Headline CPI inflation has continued to fall in the major advanced economies but remains well above central bank targets and core inflation, which excludes volatile energy and food prices, is proving more persistent.
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