Market Commentary

October 2019

 

Global Equity Markets
Trade disputes and muted global growth continued to weigh on the minds of investors. Risk sentiment was dented further by Washington’s potential move to restrict US fund flows to Chinese firms. Central bank decisions took the spotlight to combat the cooling global economy. The US Federal Reserve enacted an interest rate cut and others such as the European Central bank iterated a commitment to ramp up monetary stimulus. Oil prices spiked after a drone strike on a Saudi Arabian oil facility before cooling on rising crude stockpiles.

Asia Pacific Equity Markets
Stocks in Asia Pacific outperformed the global index as markets digested the prospects of US-China trade talks, muted global growth and an impeachment inquiry to US President Trump. Risk sentiment was dented further by Washington’s potential move to restrict US fund flows to Chinese firms. Meanwhile, central bank decisions took the spotlight to combat the cooling global economy. The US Federal Reserve enacted an interest rate cut and others such as the European Central bank iterated a commitment to ramp up monetary stimulus.

Asia (excluding Japan) Equity Markets
Asia ex-Japan stocks came under strain from global and regional factors. Investors struggled to price in the increasingly complex signals from the impact of trade wars, corporate profits and the slowing economy. Expectation for global monetary easing rose as economic growth around the world weakened. Safe haven assets including gold regained favour as investors turned risk-off. The global stock of negative-yielding debt grew to unprecedented levels as rising market volatility fuelled further bond rallies.

 

October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019

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