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.
05 Nov 2015
Unstructured Learning Time
- 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.