Equity Markets Bounced Back
Most global equity markets bounced back in October, with the U.S. and Europe ex UK outpacing the global index and developed peers, particularly in Asia Pacific, says a FTSE Russell ‘Performance Insights.’ The Russell 2000 led developed-market gains, outperforming the Russell 1000 and further shrinking the year-to-date performance gap between the two. Bucking the global trend, the emerging index fell, led by sharp declines in China and Taiwan. Commodity-centric Mexico, South Africa, and Brazil were among those making the largest emerging markets (EM) gains. For the year-to-date, the UK and Japan continued to fare best, while EM and the U.S. ranked at the bottom, with losses of 19 to 22 per cent. Global bond markets broadly stabilized in October with long-dated UK and Chinese governments rising, outpacing equivalents elsewhere, particularly in the U.S. High yield credit fared better than investment grade corporates, especially in the U.S. Longer-dated UK and U.S. inflation-linked bonds continued to lag their short-dated peers.