October 2024

• Global markets experienced mixed performance in October as investors balanced expectations for monetary easing against resilient economic data and renewed geopolitical tensions.
• Bond yields rose modestly as stronger economic indicators reduced expectations for rapid interest rate cuts.
• Technology and artificial intelligence-related sectors remained key market drivers despite periods of increased volatility.
• Energy prices fluctuated due to geopolitical developments and supply concerns.
• Chinese stimulus measures provided partial support for Asian and emerging markets.
• Corporate earnings remained broadly resilient across major developed economies.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed performance during October as investors responded positively to additional Chinese stimulus efforts while remaining cautious regarding the strength of domestic demand recovery.

Taiwan and South Korea continued outperforming due to strong semiconductor and artificial intelligence-related investment trends, while Chinese markets remained volatile amid ongoing property sector concerns.

Europe

European equities delivered mixed results during October as rising bond yields and slowing industrial activity weighed on investor sentiment across cyclical sectors.

However, easing inflation trends and expectations for further European Central Bank policy easing continued providing support for broader financial conditions.

United States

U.S. equities experienced increased volatility during October as stronger-than-expected economic and labour market data reduced expectations for aggressive Federal Reserve interest rate cuts.

Technology and artificial intelligence-related companies remained relatively strong performers, supported by continued earnings growth and investment optimism.

United Kingdom

UK equities delivered relatively stable performance during October as investors balanced improving inflation trends against ongoing weakness in domestic economic activity.

Markets continued anticipating gradual Bank of England policy easing during the coming months as borrowing costs and inflation pressures moderated.

Japan

Japanese equities remained relatively resilient during October as strong corporate earnings and continued technology demand supported investor confidence.

However, yen fluctuations and uncertainty surrounding future Bank of Japan policy adjustments contributed to periodic market volatility.

Emerging Markets

Emerging markets delivered mixed performance during October as higher U.S. bond yields and uneven Chinese recovery conditions affected investor sentiment.

Technology-focused Asian economies continued outperforming due to semiconductor demand and strong global investment in artificial intelligence infrastructure.

Commodities

Commodity prices delivered mixed performance during October as geopolitical tensions and supply risks supported energy markets despite moderate global demand growth.

Industrial metals remained relatively stable following Chinese stimulus measures, while gold prices stayed elevated amid geopolitical uncertainty and expectations for lower future interest rates.