Quarterly Investment Review: Q2 2023

Global shares gained in the Q2 with the advance led by developed markets, notably the US, while emerging market stocks lagged behind. Enthusiasm over AI (Artificial Intelligence) boosted technology stocks. Major central banks raised interest rates in the period although the US Federal Reserve elected to stay on hold in June.

The second quarter of 2023 saw a significant drop in bond market volatility. Government bond yields were on the rise again, although there was some divergence, with the UK and Australia underperforming due to higher-than-expected inflation and a greater resolve by central banks to combat inflation. The Fed was the first to pause in June, leaving rates at 5% to 5.25% after more than a year of consecutive rate increases.