Monthly markets review - October 2015

An overview of markets in October 2015, when equities posted strong positive returns amid hopes of more accommodative monetary policy from central banks.

5 November 2015

Market Views

Schroders

  • Global equity markets staged a rebound in October. A Chinese rate cut and speculation over the prospect of looser monetary policy from several other central banks helped to support risk appetite.
  • US equities rose amid a better-than-expected start to the earnings season. The Federal Reserve kept rates unchanged but indicated that a hike in December remains a possibility.
  • Eurozone and Japanese equities were supported by expectations that their respective central banks may soon move to ease monetary policy further.
  • Emerging markets posted positive returns, narrowly lagging developed markets. China’s central bank cut interest rates following a Q3 GDP print which indicated growth eased to 6.9% year on year.
  • In fixed income markets, European sovereign yields fell and Treasury yields rose due to the divergent outlook for monetary policy. The ‘risk-on’ environment helped drive the outperformance of high yield bonds versus their investment grade equivalents across the US, Europe and UK.

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Monthly markets review - October 2015 5 pages | 171 kb

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Topics:

  • Equities
  • Fixed Income
  • Multi-Asset
  • Global
  • Market Reviews Schroders
  • Commodities
  • Foreign Exchange
  • Interest Rates
  • Monetary Policy

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