Following a positive September, investment markets were mixed in October with US, Japanese and Chinese indices performing well, however markets locally couldn’t mirror the positive performance.

The major Investment markets rebounded in September following a negative August. In line with the majority of the updates this year, investor confidence grew following some positive developments in the trade war. 

Investment markets declined in August and trade tensions continue to have a big impact on investor confidence. We also saw world central banks offer support to economies in an attempt to address the ongoing economic uncertainty.

Markets had a relatively strong July with most of the major indices returning positive results. Positive returns were on the back of improved sentiment towards global trade negotiations, which was inevitably thrown out of the window in early August.

Markets responded well in June following a disappointing May. Performance was largely impacted by central banks continuing to weaken their tightening stance, whilst trade tensions appeared to ease following the G20 summit held in late June.

April’s positive performance continued the market’s momentum locking in a fourth consecutive month of gains. Globally, capital continued to flow into markets as investors became increasingly confident in a resolution of disputes between the US and China.

Markets globally continued to rise in March albeit at a slower rate in comparison to January and February. This capped off a strong quarter for equity markets globally with most indices recovering much of 2018’s pullback.

Central banks backtracking from their tightening programs along with positive developments in trade negotiations between the US and China pushed equity markets higher in February.

December’s results were mixed for equity markets with large spreads across stock markets globally. Volatility remained elevated throughout December before easing slightly in the final week of the year.

January was a positive month for investors as equity markets climbed across the board recovering from some of 2018’s turmoil.

The above graph summarises the performance of the major financial markets and gives you an indication of how these markets performed over the last 12 months. The graph does not reflect your actual portfolio performance.

October confirmed a resurgence in volatility for equity markets, which has been reflected in a divergence in returns between regions, sectors and securities alike. For some period, volatility has been subdued by liquidity being pumped into global markets in the form of quantitative easing (QE).

A mixed month in September for global markets as a range of global economic results were released. The Australian market returned its first negative month since March, whilst economic growth slowed across Europe. Surprisingly, both combatants of the trade war delivered a strong return, as tensions continue to increase between the nations.

August was a relatively strong month for markets, returns for key asset classes were strong, with equities leading the way. Notably international equities had an exceptional period with the MSCI World Ex Australia Index returning 4.14% for the month of August.

July was a relatively strong month for markets with the exception of emerging market equities, which continued to show volatility. Despite this, returns for key asset classes were strong, with equities leading the way, posting strong returns for the month.

In spite of concerning headlines of late, the global economy has still showed it has positive momentum with the healthy state of the US economy supporting economic growth around the world. That said, potential geopolitical risks are increasing, despite the successful completion of the summit between the US and North Korea towards the beginning of June.

Despite increased volatility caused by rising geopolitical tensions, the markets generally performed well in May.

The difficulty in forming a government in Italy as well as the U.S. administration’s approach to international affairs prompted investors to shun certain regions of the globe. The exodus weighed on emerging markets but enabled fixed income to record a positive return during the month. In this context, the U.S. dollar rose against a large number of currencies. In return, the economic environment continued to be favourable, thanks to sustained growth and moderate inflationary pressures, and developed markets stock exchanges generally continued to progress.

Global equities made a modest gain in April, as political tensions appeared to soften and the oil price rallied strongly in light of the continuing troubles in Syria and the instability in the region.

In April, North Korean leader Kim Jong-un made a historic visit to South Korean President, Moon Jae-in. There followed a commitment to rid the Korean peninsula of nuclear weapons. The meeting would have been unthinkable at the beginning of the year when North Korea was boasting of being able to reach the US mainland with its rockets: now Pyongyang says it will invite US observers to witness the shutdown of its nuclear site in May.

In Syria, conflict continued to escalate: The U.S, U.K and France fired a barrage of missiles at military targets inside the country following an alleged chemical weapons attack by the Assad regime. The U.S also followed with stiff sanctions against Russia for malign activity, including its support of President Bashar al-Assad and involvement in the civil war.