Monthly Market Commentaries

Global stock markets mostly gained in October after a weak start. Many registered new highs during the course of the month and were supported by encouraging corporate earnings and an easing of fears around China’s property sector.

Developed market equities were generally unchanged in Q3, with the declines in September erasing gains made earlier in the quarter. Emerging market equities notably under performed amid a sell-off in China.

Global economies continued to reopen in August, with predominantly developed markets lifting restrictions. Economic data was strong, though it appears that most developed markets are either at, or beyond, their peak rates of growth post pandemic.

Despite the uncertainty caused by the Delta variant of Covid-19, the global economic recovery continued in July. Vaccine rollouts are making steady progress and restrictions on activity are being eased further in several major developed countries.

The global economic outlook remains positive, with data suggesting that the euro area is experiencing a return to growth following a double dip recession as pandemic restrictions are eased in the region.

Concerns regarding more persistent inflation impacted markets, which were more volatile and a little constrained in May.

Fears that inflation may force central banks to raise interest rates earlier and more quickly than expected, could bring about the end of the post pandemic growth rebound.