Smaller companies rose in August and outperformed mid caps and large caps. From a sector perspective, materials, telecommunications and healthcare led whilst utilities, technology and industrials lagged. Macroeconomic data was mixed during the month, with data better than expected in the US and the UK but below consensus forecasts in Europe, Japan and emerging markets. Concerns grew about the independence of the Federal Reserve and after a dovish speech by Chairman Jerome Powell, the market looked forward to an interest-rate cut in September. Government bond yields traded mostly in a range.