Market View of the month 

After the strong rebound in risky assets in July, August has been overall a negative month both for equities and for bonds. 

In the first part of the month equity indexes consolidated their gains, helped by a marginally positive US CPI, which came out at 8.5% year over year (flat month over month), after the historical high of 9.1% in June. On the other hand, the Eurozone inflation dynamic continued to be even more challenging, with the August CPI print at 9.1%. Economic activity kept slowing down, especially in Europe, where the manufacturing PMI came out at 49.6 after the 49.8 in July (figures below 50 indicate a contraction). The US manufacturing PMI was 51.5, slightly lower than the July 52.2.

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