The independent pensions and investment expert Broadstone has issued its latest Market Pulse. Peter Dean, investment consulting director, says:
“The FTSE Europe index returned 3.7% during July after the situation in Greece began to stabilise and a Greek exit looks to have been avoided, at least in the short-term. Short-term financing was arranged to help Greece get through July and emergency funding has enabled the banks to reopen for the first time since June. Negotiations continue to finalise the reforms that will be made in Greece and the bailout package.
“Focusing on the UK, it appears that economic recovery is now established, with GDP rising for nine consecutive quarters and is now above its pre-crisis peak. UK manufacturing growth also picked up in July after a 26 month low in June.
“Global stock markets rose by 2.6% over July in Sterling terms, with the developed markets performing well while the emerging markets fell into negative territory.
“In other news, the FTSE China index tumbled 11.3% during July. The downturn in China’s manufacturing sector intensified at the start of the third quarter. Renewed falls in both total new work and new export orders led manufacturers to cut production at the fastest rate since 2011. Whilst the US economy continues to strengthen, further raising the prospect that the Federal Reserve will raise interest rates.”