Monthly Markets Review
- Global equities made further progress in October. Several major indices set new record highs, while volatility reached an historic low.
- US equities were supported by economic data that remained positive despite the disruption caused by hurricanes Harvey and Irma. The technology sector was buoyed by strong results.
- Eurozone equities gained. The economic backdrop remained encouraging and the central bank announced that quantitative easing will be extended to September 2018 but the pace of purchases would be reduced.
- In the UK, resources sectors led the market higher as Chinese macroeconomic data remained supportive and crude oil prices continued to rebound.
- In Japan, the TOPIX advanced as investors reacted positively to Prime Minister Abe’s general election victory late in the month.
- Emerging markets posted a strong return with ongoing strength in global growth proving supportive. South Korea and Taiwan performed well with technology stocks registering robust gains.
- US yields edged higher on growing expectations of progress toward fiscal reform, while Bunds dropped as the European Central Bank announced tapering of bond purchases.
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