The first quarter of 2016 was rough for global equity markets, but while headwinds persist, stocks appear to have found some stability since the middle of February.
Mining stocks were among one of the badly hit sectors this year, with the likes of Rio Tinto, BHP Billiton and Glencore seeing their profits wane and dividends fall. Base metal prices still remain low.
Paul Bloxham, chief economist for Australia and New Zealand, at HSBC reckons that commodity prices have troughed. However, he sees "only a modest pick-up from here for most commodities as markets remain over-supplied ... [and] supply retrenchment will take some time."
The banking sector is a mixed bag across different geographies. In Europe, banks received a boost from further stimulus measures from the European Central Bank. In China, banks are creating a web of risks through their wealth management products that are raising concerns about the health of the financial system.
With the new quarter starting later this week, tell us which sectors will outperform in Q2: