July’s investment market commentary

Following a challenging first half of 2022, global equity and bond markets rallied strongly during July. Risk assets were supported by concerns over global economic growth and recessionary fears, which tempered higher interest rate expectations.
Published 8 August
2½ mins

July proved to be a very good month for markets. After a challenging first half of 2022, global equity and bond markets rallied strongly during the period. Somewhat paradoxically, it was concerns over global growth (and increasing recessionary fears) that helped to provide support to risk assets, as slower growth expectations helped to temper the extremely high interest rate expectations. As did comments from Federal Reserve chairman Jerome Powell at the July Federal Open Market Committee meeting, recognising that the US economy is “softening”.

In Europe, economic growth concerns were exacerbated by the reduction in gas supplied from Russia. Despite initially returning to the 40% of capacity seen prior to the planned maintenance of the Nord Stream 1 pipeline, supply was further reduced to 20% of capacity by the end of the month. The increasing weaponisation of energy supplies by Russia shows just how urgently Europe needs to reduce its dependency. In the short term, however, we are likely to see increasing restrictions on energy usage in European countries, which will naturally hinder economic activity.

Continued lockdowns in China as a result of COVID-19 cases in and around Shanghai weighed on risk appetite and further dampened growth expectations for the region. The Chinese Politburo also made it clear in July that its zero-COVID-19 policy was here to stay and a large stimulus to combat the slowdown in growth was unlikely. So while bad news was good news for developed market risk assets, the same could not be said for emerging markets.

Global equity markets (+7.1%) were up sharply on the month. A large weighting to the technology sector benefited US equities (+9.3%), while emerging markets equities (+0.1%) were held back by the big decline in Chinese stocks. In terms of style, the interest rate sensitive growth stocks (+10.2%) outperformed the more value / cyclically (+4.0%) orientated equities, as recessionary concerns pushed bond yields lower. This was to some extent also reflected in sector performance, with information technology (+12.2%) the best performing area, followed by consumer discretionary (+11.9%) and industrials (+9.0%). At the other end of the spectrum, communication services (+1.8%), healthcare (+3.2%), and materials (+3.4%) sectors lagged the most.

Within fixed income markets, despite concerns over growth, credit outperformed government bonds over the period. Looking at the detail, global government bond prices rose (+2.2%) on reduced interest rate expectations. Global investment grade credit (+3.4%) generated a positive return over the month as spreads tightened, and at the riskier end of the credit spectrum the same was true, with global emerging market debt (+3.2%) and global high yield (+6.0%) also rallying strongly during July.

In terms of real assets, property markets performed in line with equities over the month, with the global REITs index (+7.0%) up over the period while global listed infrastructure (+6.0%) slightly lagged. Commodities (+4.3%) rose for yet another month (+23.5% year to date), led primarily by natural gas (+52.9%) as a result of increased supply restrictions of gas from Russia to Europe. Crude oil (-4.2%) fell on the back of global demand concerns, while at the same time gold (-2.3%) was weak as a result of improved risk appetite.

FTSE 1007169.287423.43
DJ Ind. Average30775.4332845.13
S&P Composite3785.384130.29
Nasdaq 10011503.7212947.97
£ Base Rate1.251.25
Brent Crude109.03103.97

This month’s values quoted as at 29/07/2022. The above values are sourced from Bloomberg and are quoted in the relevant currency.

Clients of Nedbank Private Wealth can get in touch with their private bankers directly to understand how their portfolios are responding to market events or call +44 (0)1624 645000 and speak to our client services team.


If you would like to find out more about how we help manage clients’ investments, please also contact us on the number above. Or you can get in touch using the links to the forms towards the end of this page.

Investments can go down, as well as up, to the extent that you might get back less than the total you originally invested. Exchange rates also impact the value of your investments. Past performance is no guide to future returns. Any individual investment or security mentioned here may not be suitable, and is included for information only and is not a recommendation. You should always seek professional advice before making any investment decisions.

about the author

Tom Caddick

Tom Caddick

Tom was appointed in March 2021 and brings to the table over 20 years’ investment experience. Prior to joining, he was at Santander Asset Management in London for nine years, where he was, most recently, the chief investment officer for its UK business, having previously been the global head of the multi asset division. Tom also spent several years as head of multi manager and fund selection at LV Asset Management.

Tom sits within Nedgroup Investments, a sister company, which provides investment advice, research and portfolio modelling solutions to Nedbank Private Wealth. Here, he heads up the London-based investment team. It is in this capacity that he is a member of Nedbank Private Wealth’s investment committee.

Access more of our insights


The week in review

21 Mar

   |   4 mins

The week of 13 March 2023 was another volatile week for markets as further upheaval in the banking sector raised fears of a steeper economic slowdown and hopes of an easing of central bank rate hikes.


The week in review

14 Mar

   |   4 mins

The week of 6 March 2023 saw markets down sharply, as hawkish talk from the Federal Reserve and strong US jobs data early in the week were eclipsed by events in the financial sector.


February's investment market commentary

10 Mar

   |   2½ mins

February saw a reversal of some of the strong gains made in the prior month, with both global equity and bond markets falling during the period. Simon Watts explains.


The week in review

28 Feb

   |   3 mins

The week of 20 February 2023 saw stronger than expected inflation and economic growth reports and a more hawkish stance from central banks, leading to widespread declines in markets.

Get in touch

If you are interested in becoming a client, please complete the form via the ‘become a client’ button below. Alternatively, if you are already a client, or if you have a question about how we help clients in particular circumstances, please use the ‘contact us’ button.

We will get back to you as soon as we can during office hours, which are Monday to Friday, 8am to 8pm (UK time), except for UK public holidays.

Become a Client

Thank you for your interest in Nedbank Private Wealth. Please call us on +44 (0)1624 645000 or complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.  Please note: If you are an EU resident, we are unfortunately unable to offer our services to you at present.

* Required fields

Contact Us

Please call us today on +44 (0)1624 645000. Our office hours are weekdays from 8am to 8pm (UK time), except for UK public holidays.


Or please complete and submit the below form and one of the team will get back to you as requested.

* Required fields

Search suggestions