Monthly markets review - October 2014

Market Views


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  • Global equities delivered positive returns though there were sharp falls in the first two weeks due to growth worries. The threat of Ebola, anti-government protests in Hong Kong, and the end of US quantitative easing (QE) added to heightened risk aversion but equities recovered ground in the latter part of the month.
  • In the US, the S&P 500 reached fresh all-time highs, despite the Federal Reserve (Fed) bringing QE to an end. Stronger macroeconomic data, with Q3 GDP growth at 3.5%, and some encouraging corporate earnings helped to support US equities.
  • Eurozone equities posted negative returns renewed worries about the region’s faltering economic recovery, with investors particularly concerned by disappointing data from Germany’s industrial sector.
  • Japan delivered positive returns, supported by a surprise month-end announcement by the Bank of Japan that it is stepping up its monetary easing programme.
  • Emerging markets outperformed their developed counterparts, supported by gains for Turkish and Chinese equities despite data showing slower Chinese GDP growth. 

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Monthly markets review 5 pages | 170 kb


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