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Irish Life
Irish Life the largest life and pensions group and fund manager in Ireland, employing 2,000 people and servicing one million customers.
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Irish Life Health
Welcome to Ireland’s newest health Insurer, Irish Life Health. Bringing fresh options and innovation to the health insurance market.
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Irish Life Corporate Business
The largest provider of company pensions, life insurance and income protection for companies and affinity groups across Ireland.
Market Pulse - July 2023
- Market Pulse
- 11.08.23
- ILIM
Key themes
- In July, inflation surprised to the downside for the first time since the beginning of the year; this, together with robust economic activity data releases, increased the probability of a ‘soft landing’ for the global economy – an economic slowdown without a recession.
- Global stock markets made further gains, with US stocks benefiting from a favourable economic backdrop.
- Bond markets were mixed, as changes to yield curve control management by the Bank of Japan (BoJ) contributed to higher government bond yields, whereas corporate bonds rose on an improving growth outlook.
Markets snapshot
- Global equities, as represented by the MSCI All Country World Index (ACWI) rose by 3.2% (2.6% in euros) over the month as stocks were supported by broadly resilient economic data and expectations of 2024 rate cuts amid falling inflation.
- The MSCI USA rose by 3.4% (2.4% in euros) as hopes for a soft landing were in greater evidence than in other regions.
- European ex UK equities were more muted, with a less supportive economic outlook; the asset class climbed by 1.3% (1.9% in euros).
- Small-cap equities rose 4.3% (3.8% in euros), outperforming large caps, supported by the more resilient growth in the US and increasing hopes of a soft landing.
- Emerging-market (EM) equities outperformed developed markets in July, rising by 5.4% (5.2% in euros). The asset class was boosted by a recovery in Chinese equities, which rose 10.1% as the authorities announced plans to introduce stimulus measures to support growth.
- Fixed income markets were mixed. The ICE BofA 5+ Year Euro Government bond index fell -0.6%, with the German 10-year yield rising to 2.49%, following changes to yield curve control management by the Bank of Japan (BoJ). European investment-grade (IG) corporate bonds, however, rose by 1.1% in July, supported by expectations that central bank rate increases were close to peaking and growing hopes that a soft economic landing would be achieved and a recession would be avoided.