For most of the quarter volatility stayed low and equity markets around the world defied interest rate increases and kept climbing upwards. But towards the end of the quarter it became apparent that inflation would remain sticky and any sign of rate cuts was being pushed out further into the future.

The outcome is that while it has been a strong 12-month return for markets the quarter has seen flat to slightly negative returns, as rising bond yields increase pressure on the economy and are causing market angst, while central banks reiterate that rates will stay “higher for longer”.