S&P +5.38%. A combination of investors believing bad news may already be priced-in, favorable earnings reports, as well as indications that the Federal Reserve is open to slowing its pace of rate hikes may have helped fuel the rally. Investors should be aware of supply chain disruption concerns mounting amid protests in China over lockdown disruptions.
Europe +6.74%. Although last month has been positive for Europe, there are still concerns over business activity slowing, adding to signs that the economy may be in a recession. Germany reported better than expected economic growth in the third quarter amid waning fears of energy shortages in the winter. UK’s FTSE 100 grew more than 1% this month, a potential sign investors are encouraged by the new shake up and new ‘mini budget’ laid out by the new Chancellor of Exchequer, Jeremy Hunt.
Asia +14.84%. Asia saw encouraging growth levels this month, up significantly from the previous month. Wall Street banks have newfound optimism around Xi Jinping’s policy pivots rand other major banks moving away from their bearish views, including news that Morgan Stanley expecting MSCI China Index to rally 14% by year end. This is despite mass protests surrounding governments tightening covid restrictions, as their cases soar.
Emerging Markets +14.64%. Stocks rallied hard this month by the most since March 2016. As the fed cuts back on interest rates, it is a strong signal that investors may be spurred on to look at the opportunities beyond developing nations. Emerging markets were also supported by a 5% drop in the USD.