Inflation spectre haunts stock markets
Negative investor sentiment over rising interest rates continued to put downward pressure on the world’s equity markets in June, according to Standard & Poor’s (S&P).
The researcher’s “World By Numbers” global stock market review reveals emerging markets lost 0.57 per cent during the month and developed world markets 0.14 per cent.
Emerging markets are now down 4.81 per cent for the year to date, it reveals, while developed markets remain in the black with a 0.66 per cent gain.
“Interest rates, with the implied increase in inflation, continue to be the leading cause of concern for the world’s equity markets,” Howard Silverblatt, S&P senior index analyst, said.
“In June, US interest rates were raised another quarter-percentage point, with the expectation of another hike in August, while in Japan, many investors believe rates will rise in future.”
Singapore was S&P’s best performing developed world stock market in June, returning 1.93 per cent, followed by Spain on 1.23 per cent for the month.
Nigeria was the best performing emerging market in June, with a 7.51 per cent gain, followed closely by Argentina, which was up 6.69 per cent for the month.
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