It is always a good idea to keep up to date with the global market as often the UK is impacted by other regions of the world.
This does not constitute advice and advice should be sought in all instances before acting on it.
Third quarter highlights
- Global equities gained but the UK and Europe were outperformed by Asia and the US, extending their year-to-date underperformance
- Poorly performing stocks in the oil and financial sectors contributed to the lacklustre figures
- Despite an acceleration in new COVID-19 cases, emerging market (EM) equities advanced
- Government bond yields did not experience significant change even though European yield fell (resulting in raised prices) and corporate bonds had a positive quarter
- Commodities delivered a positive return
- Livestock, agriculture, and industrial metals were responsible for the bulk of the gain
- Eurozone shares were virtually flat, the increasing rate of infection leading to additional restrictions being imposed in several countries
- Brexit fears continued to weigh heavily on performance, along with concerns about the effects of another wave of coronavirus and further lockdowns
- When restrictions were eased, figures indicate that recovery picked up quickly which was reflected in companies resuming dividend payments, which had previously been deferred at the peak of the pandemic
- Even though many areas, including mid cap equities, did not perform well in September, many UK domestic areas did
- Sterling strength against a weak dollar impacted internationally exposed large caps
- Increased merger and acquisition activity at the end of the period
What does this all mean for your portfolio?
How do we expect the market to perform in the last quarter of the year and how could it affect you? We’re here to provide investment advice and support to help our clients through turbulent times. So, if you are worried about your financial plan in light of the recent market volatility and want to review it with a trusted adviser, get in touch with us today.
Time to review your investment portfolio?
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