Viewpoint – Nov 2019
Risk assets made further progress in October, with equities leading the way. Wall Street gained 2.1% and reached a new all-time high, but, as in September, the best returns came outside the US: Japan was up by 5%, Asia ex Japan by 4.5% and emerging markets by 4.2%. Among the major markets only the UK was down (-2.1%) as a strong rally in sterling put pressure on the big overseas earners, which dominate the UK stock market. The improved appetite for risk was reflected in bond markets, with safe haven government bonds flat or down while credit markets produced positive returns, led by US corporate bonds up 0.6%.