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October market update – global economy faces headwinds next year

Head of Multi-Asset Funds Ben Seager-Scott and Senior Research Analyst Louie French give their commentary on what happened in the markets over the month of October 2020
Published on 12 November 2020

Investors faced another scary ride in October, with few market treats on offer in the run up to the polarised US presidential election and as rising coronavirus cases and fresh lockdown restrictions across Europe took their toll on risk sentiment in the second half of the month.

In this edition

  • Against this backdrop, returns were weaker across developed equity markets, with negative monthly returns from European, Japanese, UK and US equities.
  • Asian and Emerging Market equities outperformed, with the rally at the beginning of the month reflecting the recovery in economic activity, particularly in China.
  • October was a month of mixed fortunes for fixed income markets, reflecting the heightened political risks and expectations of further stimulus from global central banks and governments.

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