Quarterly Market Environment Report – July 2019


Mercer's market environment report provides a detailed review of the capital market environment and trends on a wide range of assets classes.


The July 2019 edition covers the following discussions:


  • A strong quarter for both stocks and bonds

Macro Environment

  • The Fed is likely to cut rates
  • The Fed reviews its policy framework
  • Global economic upturn proves elusive
  • Chinese growth continues to slow
  • US growth still on a solid foundation
  • The dollar softened on expectations for Fed easing

Financial Markets

  • Optimism over Fed easing overcame slowing
  • Global growth
  • US stocks rally as the Fed looks set to ease
  • International stocks continue to lag the US due to weaker fundamentals
  • Trade uncertainty weights on emerging stocks
  • Rates decline as the Fed signals a cut
  • Narrow spreads represent a risk for high yield
  • Emerging local debt helped by falling rates
  • Environment for EMD becomes more supportive
  • Hedge funds: Add to gains, deliver strong first half
  • LDI: Gearing for a move toward strategic hedge ratio
  • Factor and manager universe performance

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