September 2018

• Global markets were mixed in September as rising U.S. interest rates and trade tensions continued influencing investor sentiment.
• U.S. equities remained relatively strong while emerging markets stayed under pressure.
• Oil prices advanced further amid tightening supply conditions.
• European markets remained subdued due to political uncertainty and weaker growth.
• Bond yields rose modestly alongside continued Federal Reserve tightening.
• Volatility remained elevated compared with earlier in the year.

Asia (ex. Japan)

Asian markets outside Japan remained mixed during September as trade tensions and slowing Chinese growth continued affecting sentiment.

Chinese policymakers introduced additional support measures to stabilise growth, while technology exporters remained relatively resilient overall.

Europe

European equities were relatively subdued due to political concerns surrounding Italy’s budget plans and softer economic momentum.

Export-oriented sectors remained sensitive to trade tensions and global growth concerns.

United States

U.S. equities continued outperforming during September as strong earnings and economic growth supported investor confidence.

The Federal Reserve raised interest rates again while maintaining expectations for further gradual tightening.

United Kingdom

UK equities remained mixed as Brexit negotiations continued generating uncertainty for domestic assets and sterling.

Economic conditions remained relatively stable despite ongoing political volatility.

Japan

Japanese equities delivered modest gains during September as stable global demand and accommodative policy supported exporters.

The Bank of Japan maintained ultra-loose policy settings amid subdued inflation.

Emerging Markets

Emerging markets remained under pressure during September due to rising U.S. rates and continued dollar strength.

However, some Asian economies stabilised as Chinese policy support measures improved sentiment modestly.

Commodities

Commodity prices strengthened during September, led by oil due to tightening supply conditions and sanctions concerns.

Industrial metals remained weak amid trade uncertainty and softer Chinese growth expectations.