Economic fallout from Hurricane Harvey closes out August
MONTHLY MARKET COMMENTARY |
Fixed income markets globally were positive for the month with gains being evenly distributed. High yield was the only laggard as energy credits were affected by Hurricane Harvey. Year-to-date, international markets continued to outpace domestic. U.S. Treasury inflation protected securities had a noteworthy month as inflation expectations held steady. The 10-year U.S. Treasury yield fell 18 basis points during the month to end at 2.12 percent
U.S. large cap equities broadly outperformed their mid and small cap counterparts. Growth equities fared better than value across all market caps. International equities, both developed and emerging, saw strong performance. Emerging markets are up over 28 percent year to date in 2017. Domestically, oil and gas were a drag on returns while technology and health care saw the biggest increases.
Hurricane Harvey’s disruption in the Gulf of Mexico negatively impacted master limited partnership performance. The group saw a noticeable pullback as a result of refineries temporarily suspending operations. International and domestic real estate investment trusts were both flat during an uneventful month. Commodities ended marginally higher as refinery suspensions led to a mild supply shock in natural gas and unleaded gasoline. Metals were also positive while agriculture fell.