Market Commentary

Equities in developed economies generated strong results, led by continued economic improvement in the Eurozone and gains in technology and consumer stocks in the U.S. The largest headwind in the U.S. remains energy, which suffered as oil traded below $50/bbl to a four month low, creating fresh losses in energy-related investments and negatively impacting Q2 corporate earnings. Bonds generated their first positive return in three months, despite the Fed further communicating the likelihood of an interest rate hike later this year. A sell-off in Chinese equities and further weakness in the global commodity complex resulted in large losses in emerging markets.

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