October 2018

• Global markets suffered sharp declines in October as rising interest rates, trade tensions and slowing global growth triggered widespread risk aversion.
• Technology stocks experienced significant corrections globally.
• U.S. Treasury yields reached multi-year highs, pressuring equity valuations.
• Emerging markets remained volatile despite some stabilisation in currencies.
• Oil prices reversed sharply lower after earlier gains.
• Volatility increased substantially across global asset classes.

Asia (ex. Japan)

Asian markets outside Japan declined sharply during October as technology stocks and export-oriented sectors came under pressure from slowing growth and trade tensions.

Chinese equities weakened further despite ongoing policy support, while South Korea and Taiwan experienced heavy losses within semiconductor-related sectors.

Europe

European equities fell sharply during October as slowing economic growth, Italian budget concerns and rising global volatility weighed on investor sentiment.

Banking and industrial sectors underperformed amid concerns over tighter financial conditions and weaker trade activity.

United States

U.S. equities experienced a sharp correction during October as rising Treasury yields and concerns regarding slowing earnings growth unsettled investors.

Technology and growth stocks led declines, while the Federal Reserve maintained expectations for continued gradual tightening.

United Kingdom

UK equities weakened during October alongside broader global markets as Brexit uncertainty and rising global volatility pressured sentiment.

Commodity sectors also weakened following sharp declines in oil prices late in the month.

Japan

Japanese equities declined significantly during October as global volatility and weaker export expectations weighed on investor confidence.

The stronger yen during periods of risk aversion further pressured exporters and industrial sectors.

Emerging Markets

Emerging markets remained volatile during October as global risk aversion intensified and investors reduced exposure to higher-risk assets.

However, some currencies stabilised modestly as U.S. dollar strength eased slightly.

Commodities

Commodity prices weakened sharply during October. Oil prices reversed lower as investors worried about slowing demand growth and rising supply.

Industrial metals also declined due to global growth concerns, while gold prices benefited modestly from increased safe-haven demand.