Chapters
Global equities
October was a volatile month for markets, with global equities moving lower after a sell-off at the end of the month. Global growth risks remained the primary concern for investors, who were spooked by some underwhelming earnings releases. Uncertainty was also heightened by the impending US election and the potential policy implications. Emerging market equities – particularly Chinese stocks – underperformed developed markets. That said, US equities fell for the first time in six months, partly due to the ‘Magnificent 7’ earnings updates disappointing investors.
In Europe, sentiment was subdued, and equities lagged other developed markets. Japanese equities, however, gained on the back of a weaker yen amid political uncertainty, with the ruling LDP losing its parliamentary majority. Chinese stocks, having started the month strongly, gave up their gains as markets were disappointed by the lack of significant new fiscal spending announcements from Beijing, and speculative positioning eased.
Most sectors delivered negative returns, with materials and consumer staples the weakest performers. Financials and communication services were among the better-performing sectors, albeit flat for the month.
| Indices (total return in local currency) | |
|---|---|
| S&P 500 | -0.9% |
| Nasdaq Composite | -0.5% |
| MSCI ACWI | -2.2% |
| Nikkei 225 | 3.1% |
| EuroStoxx 600 | -3.3% |
| FTSE 100 | -1.4% |
| Hang Seng Index | -3.8% |
| SSE Composite | -1.7% |
Source: Bloomberg, for the month ending 31 October, 2024.
