Citi Personal Wealth Management

More Signs of Recovery in June

Monthly Market Snapshot: June 2020

Highlights

Stocks across most markets experienced solid gains in June with the MSCI All Country World Index rising another 3.0%. In the United States, the S&P 500 edged 1.8% higher while the tech-heavy NASDAQ jumped 6.0% These gains helped the Dow Jones to log its best quarterly performance since 1987 – rising 17.8%. The 10-year U.S. Treasury yield was little changed.

The rally in U.S. stocks may have taken a pause of late, but U.S. economic data did not. Both retail sales and orders for durable goods in May surprised to the upside and early June readings on consumer confidence suggest a more upbeat consumer. We will be watching to see if these trends continue in July as the recent surge in COVID-19 cases could dampen economic activity some.

Citi Private Bank’s Global Investment Committee (GIC) maintains an overweight on global equities, including U.S. small-cap shares, and select emerging markets (in Asia and Latin America). European shares have been moved from an underweight to a neutral weighting. The GIC moderately reduced its overweight in U.S. Treasuries to fund an overweight on select U.S. real estate investment trusts (REITS).