Market Review July

  The magic ball

Rarely has July been such a hot month for politics. A failed assassination attempt on the American side tipped the US election, then a week later the change of Democratic candidate reshuffled the cards. On the French side, the fear of the far right coming to power led the far left to become the party with the smallest minority, resulting in an institutional deadlock reminiscent of the Third or Fourth Republics. This nervousness is reflected in a return of volatility on the financial markets, which are nevertheless continuing to move forward. Equities are holding up well overall, with the exception of Asian stocks.

Interest rates fell slightly over the month, enabling Swiss and international bonds to post a positive performance. Swiss real estate continued to perform well.

After a negative June, gold is back on the rise, while oil is down around 5%.

The risk indicator remains in the medium-risk zone. The equity sub-index has seen its risk increase significantly.

MAIN performances

XO Risk Aversion Index - Composite 250D

XO Risk Aversion Index - Components