Equity markets shrugged off concerns following the inconclusive Italian elections in late February and gained strongly to their close on March 14th. However, the bundled bail out of Cyprus was the catalyst for significant weakness in European markets to month end led by peripheral markets and the banking sector. Elsewhere equity markets continued to gain on the back of firmer economic data and ongoing quantitative easing.
Higher grade Sovereign Bond markets gained marginally in March as the Cyprus debacle ensured some gains for lower risk assets while peripheral Spanish and Italian Bond yields increased. The main trend in currency markets saw the Euro weaken significantly against all major currencies as Cyprus newsflow raised fears for Euro area stability.
Click here to download the full report: Investment Market Commentary – March 2013