Concerns over Greece exiting the euro and the Federal Reserve raising short-term interest rates were the dominant themes that impacted global markets during June. Stocks in developed economies, including the U.S. and Europe, sold off ahead of a June 30 deadline for Greece to make a €1.54 billion debt payment to its creditors. In the U.S., small cap stocks were the lone bright spot given their closer ties to the domestic economy, while income‐oriented investments from bonds to utility stocks experienced losses as the Fed held the door open to raising rates later this year.
- Despite a negative Q1 GDP estimate, J.P Morgan believes that U.S. economic activity appears to be picking up in Q2, given the strongest consumer since August 2009 and a pickup in stronger housing market data.
- Yields on U.S. Treasuries continued their rise throughout the month, resulting in their first quarterly loss since 2013 (e.g., the 10 yr Treasury closed the month at 2.35%, its highest yield since November '14)
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