Developed markets on cruise control

Developed markets have demonstrated awe-inspiring resilience in the face of struggles in China, Brazil, Puerto Rico and Greece. The U.S. economy and markets continue to march forward at a measured pace. The housing sector in particular is showing vigorous improvement, with existing home sales the fastest in eight years and rising to the highest median price on record. The employment front is also looking healthy, jobless claims have fallen to the lowest number since November 1973 and consistently have been below 300,000 since March.

Enthusiasm was curbed, however, by a drop in consumer spending, retail sales unexpectedly fell 0.3%, the first decline in four months. An anticipated surge in consumer spending, which was predicated on low oil prices, is taking time to work through the economy. Manufacturing, despite the carnage in the capital-intensive oil industry, expanded for the 31st consecutive month led by an increase in new orders. The latest U.S. and euro manufacturing reports indicate expansion while emerging markets are contracting slightly.

"European and Japanese markets also demonstrated resilience, holding on to their strong gains year to date driven by expanding manufacturing and positive GDP. Their currencies also have stabilized relative to the U.S. dollar after sharp adjustments due to monetary stimulus from their respective central banks. As intensive energy exporters both regions are benefiting from lower energy prices, which are providing are a healthy dividend for consumers and businesses", says Voya Global.