Milliman Market Monitor London, August 2018

European markets declined in August, reflecting investor concerns regarding trade pressure between the U.S. and other countries. In this month’s London market monitor, Milliman’s Peter Lin and Neil Dissanayake highlight key observations including:

• Both the Euro Stoxx 50 and FTSE 100 indices lost more than 3% in total returns during the month, turning negative year-to-date.
• The British pound continued its downward slide against other major currencies in August.
• CPI price inflation rose from 2.4% to 2.5% in July, but RPI price inflation declined by 20 basis points to 3.2% in the same month.
• Realised volatility of equity indices increased in mid-August stemming from trade disputes and emerging market uncertainty.
• The volatility risk premium increased for all indices in August, with the S&P 500 index ending the month at around 3.5%.

To learn more, download the full commentary here.

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