Market Review August

  In August, even God in on holiday

In August, even God is on holiday". This Italian proverb applies perfectly to 2023. Fears about the Chinese property market and the US Federal Reserve's (FED) continued tough stance on rate hikes drove the equity markets lower. China was the most heavily penalised market, falling into negative territory over the year. The banking sector benefited from the rise in interest rates, while luxury goods and materials came under pressure.

US interest rates rose over the month, returning to their October 2022 highs. This has obviously had an impact on bond indices, which have been back at 0 since 1 January. Only the Swiss bond index remained stable, helped by sluggish long-term interest rates.

Currencies continued to fall against the CHF, with the notable exception of the USD, which was boosted by rising interest rates. Finally, commodities were up at the end of the summer, with the exception of precious metals.

As last month, the risk indicator was very low, except for commodities.

MAIN performances

XO Risk Aversion Index - Composite 250D

XO Risk Aversion Index - Components