Equities Market Perspective: Cyclicals take firm grip on leadership of equities rally


The style leadership of the equities rally continues to alternate between defensives and cyclicals, with the direction of bond yields a key driver. In this month’s update, Ritu Vohora, Investment Director at M&G Investments, explores the momentum behind cyclicals’ current rally.

Ritu also provides a review of market trends in July as global equities complete their strongest monthly performance of the year so far. Emerging markets and Asia-Pacific ex Japan were the best performing regions, while the US lagged. In sectors, materials led performance followed by technology, as the cyclical rotation continued with most defensive sectors underperforming.

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