September 2019

• Global markets recovered in September as central banks delivered additional monetary stimulus and trade tensions eased modestly.
• The European Central Bank announced a new package of stimulus measures, including renewed asset purchases and lower deposit rates.
• Equity markets rebounded globally as investor confidence improved following August’s volatility.
• Bond yields rose modestly from record lows as recession fears eased slightly.
• Emerging markets benefited from improved risk appetite and stabilising trade conditions.
• Oil prices experienced sharp volatility following attacks on Saudi Arabian oil facilities.

Asia (ex. Japan)

Asian markets outside Japan rebounded during September as investor sentiment improved following supportive central bank actions and modest easing in U.S.-China trade tensions. Chinese economic data remained soft overall, though policy support measures continued helping stabilise domestic activity.

Technology-focused markets such as Taiwan and South Korea recovered strongly as semiconductor sentiment improved modestly. India remained volatile due to slowing domestic growth, though government stimulus announcements helped improve investor confidence later in the month.

Europe

European equities advanced during September after the European Central Bank announced a new stimulus package that included lower deposit rates and the resumption of quantitative easing. Investors responded positively to the ECB’s commitment to supporting growth and inflation.

Economic indicators remained relatively weak, particularly within manufacturing sectors, though improving financial conditions helped support equity markets and reduce pressure on peripheral sovereign bonds.

United States

U.S. equities recovered during September as the Federal Reserve delivered another interest rate cut and signalled continued flexibility regarding monetary policy. Trade tensions with China eased slightly following renewed negotiations and delayed tariff measures.

Economic conditions remained relatively resilient, supported by strong employment and consumer spending, although manufacturing activity continued slowing. Treasury yields rebounded modestly after falling sharply in August.

United Kingdom

UK equities were relatively stable during September as political developments surrounding Brexit continued driving sterling volatility and investor sentiment. Parliament remained deeply divided over the government’s Brexit strategy.

Economic growth conditions remained subdued due to prolonged uncertainty, while the Bank of England maintained a cautious policy stance amid mixed economic indicators.

Japan

Japanese equities advanced during September as global sentiment improved and trade-related fears eased modestly. Exporters benefited from stabilising currency conditions and recovering global risk appetite.

The Bank of Japan maintained accommodative monetary policies while continuing to monitor downside risks associated with slowing global growth and trade uncertainty.

Emerging Markets

Emerging markets rebounded during September as lower global interest rates and improved risk appetite encouraged investor inflows. Asian economies benefited from stabilising trade conditions and supportive Chinese policy measures.

Commodity-exporting economies also improved as energy prices rose temporarily following disruptions to Saudi oil production.

Commodities

Commodity markets experienced significant volatility during September. Oil prices surged sharply after attacks on major Saudi Arabian oil facilities disrupted global supply expectations, though prices later stabilised as production recovered faster than anticipated.

Gold prices remained elevated despite modest rises in bond yields, while industrial metals stabilised as trade negotiations and stimulus expectations improved sentiment.