In the first month of the new financial year, global developed markets performed well as diminished concerns over Greece allowed the US and European markets to recover. US equities were also buoyed by positive economic updates including Q2 US GDP growth, and the Fed maintained its signal that interest rates are likely to rise this year if the US economy continues to improve. Volatility remained elevated in emerging markets as the fear of a China “Hard Landing” re-emerged and Shanghai equities dropped another 15% in July. The interest rate hike in South Africa also caused uncertainty in the future growth of emerging economies.
