GPR/APREA Index Report - July 2022

July’s news flow remained challenging, with investors expecting the developed world’s central banks to stay on a protracted hiking cycle and tighten money supply to combat inflation. On the back of the protracted conflict in Ukraine and slowing growth in the US and Europe, outlook for the global economy has also darkened. Meanwhile, data emerged that widespread lockdowns in China to stem Covid infections has strained economic activity in the second quarter. The country’s economy grew just 0.4% in that period – its slowest pace since the coronavirus outbreak two years ago. Still, capital markets in the region rebounded as investors shrugged off the negativity. Equities in the region rose as strong corporate earnings in the US and the expected resumption of Russian gas supply to Europe lifted sentiment.