Global markets delivered resilient returns in September, supported by improving macroeconomic data and increasingly dovish signals from central banks. In the US, equities performed strongly, with both the NASDAQ and S&P 500 rising by 5.7% and 3.6% respectively, driven by robust earnings, continued enthusiasm around AI-led productivity, and growing expectations of further monetary policy easing following the Federal Reserve Bank’s (Fed) cautious tone. European equities also advanced, though at a more moderate pace. The Euro STOXX 50 rose by 3.4%, supported by stabilising inflation and improving business sentiment, while the FTSE 100 gained 1.8%, helped by strength in globally exposed sectors. In fixed income, the US 10-year bond yield fell by 7.8 basis points, reflecting investor confidence in the Fed’s policy stance of cutting rates to the target of 4%. In the UK, the 10-year bond yield fell by 2.3 basis points, as the Bank of England held rates at 4% but maintained a cautious tone amid sticky inflation and subdued growth. Commodities experienced mixed performance. Gold surged by 10.5% as investors sought safe-haven assets amid US dollar weakness and rate cut expectations, while copper rose by 6.2%, reflecting optimism around industrial demand and global growth. Currency markets saw minimal movement, with both sterling and the euro largely stable against the US dollar.

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