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August was characterised by a resurgence in risk appetite, underpinned by the resilience of the global economy. Geopolitical uncertainty, inflationary fears and the sustainability of certain countries’ debt remain, for the time being, the spectre of a future problem, albeit overshadowed by an outlook for earnings that remains robust.
The financial markets regained positive momentum in August. Equities rose, buoyed by economic indicators that remained solid and an earnings season that largely exceeded expectations. The technology sector resumed its role as a driving force, buoyed by investment in artificial intelligence and confirmation of robust earnings growth. Small-cap and emerging market equities also contributed to the uptrend; only the Swiss market posted a negative return.
In the fixed-income markets, Swiss bonds ended the month in slightly positive territory, whilst international bonds posted negative returns.
Real assets also benefited from a favourable environment. Gold rebounded sharply, rising by 9.7%, buoyed by the weakness of the dollar and persistent geopolitical uncertainties. Commodities continued to rise, whilst cryptocurrencies staged a marked recovery, with Ether gaining more than 32% over the month.
