Market Pulse - October 2023
- Monthly Market Pulse
- 07.11.23
Key themes
- US treasury yields continued to rise over October, even amid increased geopolitical uncertainty, and global bond indices were mixed.
- Global stock markets were also weaker, dragged down by rising bond yields and somewhat lacklustre third-quarter earnings. Strong US economic activity contrasted with mixed data in the Eurozone.
- Meanwhile, the Middle East conflict raised concerns over geopolitical tensions in the region and the potential for disruption to oil supplies.
Markets snapshot
- Global equities, as represented by the MSCI All Country World Index (ACWI), declined by 2.7% (-2.8% in euro terms) dragged lower by rising nominal and real interest rates and somewhat lacklustre third-quarter earnings.
- The US was down by 2.3% (-2.1% in euros).
- European ex-UK equities fell by 3.3% (-3.4% in euros) amid a weak economic outlook.
- Bond markets were mixed in October, with high yields meaning that bonds benefited from carry and some indices managed to eke out a gain. The ICE BofA 5+ Year Euro Government bond index was up by 0.2% over the month.