Citi Personal Wealth Management

A Giant June

Monthly Market Snapshot: June 2019

Highlights

After a brief meltdown in May, global stocks regained their footing as U.S. – China trade tensions thawed and the Federal Reserve signaled easier monetary policy. Globally, stocks pushed 6.4% higher with European shares leading the way with a 8.2% gain. In the United States, stocks experienced similarly-sized gains with the S&P 500 adding 6.9% in the month. The areas most exposed to trade like the tech-heavy NASDAQ and emerging markets also saw relief – rising 7.4% and 5.7%, respectively.

Trade tensions remain unresolved, but having both sides back at the negotiating table is an improvement. Uncertainty on the final outcome remains high, but most investors appear optimistic that a deal will eventually be struck. With trade issues sidelined for now, the market’s focus will be on the Federal Reserve. It is widely expected that the Fed will cut rates at its July 31 meeting, but it is not yet a guarantee. Incoming economic data will be a driving factor.

Citi’s Private Bank’s Global Investment Committee (GIC) maintains a slight underweight on global stocks. After the decision, The GIC’s global stock allocation is 2.0% underweight, global fixed income is 1.5% overweight and cash is 0.5% overweight.