Monthly markets review - October 2016
An overview of markets in October 2016 when US equities fell amid caution ahead of the presidential elections and a potential December rate rise.
4 November 2016
- The MSCI World index declined (in US dollar terms) and was outpaced by emerging market equities.
- US equities fell amid uncertainty ahead of the presidential elections, as well as expectations that a rate rise would be forthcoming in December.
- Eurozone equities advanced, supported by encouraging macroeconomic data as well as solid quarterly earnings reports.
- UK equities delivered positive returns as further sterling weakness supported globally diversified large cap stocks such as the resources sectors and the international banks.
- Japanese equities were supported by a weaker yen, with financial sectors leading the gains.
- Emerging markets delivered positive returns overall. Brazilian equities outperformed after a budget spending cap was approved earlier than expected.
- October was a weaker month for global bond markets as inflation expectations rose in a number of markets. Government bond yields were sharply higher overall.
Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.