United Kingdom, Intermediaries

Monthly Market Snapshot: September 2020

A monthly update on equity, fixed income, currency and commodity markets.

Views expressed are those of the authors and are subject to change. Other teams may hold different views and make different investment decisions. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional or institutional investors only.

Equities

Global equities (-2.7%) fell for the first time in six months, ending with a 1.6% year-to-date gain. Markets contended with an escalation in COVID-19 cases and indications that the global economic recovery has moderated. The worldwide death toll from the pandemic eclipsed one million, with infections escalating in Europe, the US, India, and Latin America. Europe faced an alarming rise in cases as the number of new infections reached record highs in some countries. The US grappled with political uncertainty around the upcoming presidential election and the lack of additional fiscal stimulus. Economic indicators signaled a robust rebound in China’s economy, although tensions with the US continued to mount as the US government imposed new restrictions on Chinese technology companies. Brexit negotiations deteriorated after a controversial bill, which could override elements of the Brexit Withdrawal Agreement, passed its first parliamentary hurdle in the UK’s House of Commons.

US equities (-3.8%) declined for the first time in six months. Large-cap technology companies, which had been key drivers of the market’s powerful rally from its March lows, fell sharply at the beginning of September amid concerns about crowded positioning and stretched valuations. Ongoing concerns about the pandemic weighed on the broader market despite optimism about the progress of vaccine trials. Democratic and Republican lawmakers failed to break an impasse on a fifth fiscal aid package, with both sides remaining divided on the package’s size and scope. The US Federal Reserve (Fed) signaled that it will hold interest rates near zero until inflation is on track to moderately exceed 2%. The Fed stressed the need for additional fiscal support and upgraded its economic growth forecast for 2020 to -3.7%, from -6.7% in June, indicating that it expects the US economy to accelerate amid a faster-than-expected decline in unemployment.

Democratic nominee Joe Biden held a steady lead over President Donald Trump in the polls ahead of November’s presidential election. Markets confronted the specter of heightened volatility and political turmoil in the coming months amid uncertainty about…

To read more, please click the download link below.

RECOMMENDED FOR YOU

2021 Investment Outlook
As we head into the new year, thought leaders from across our investment platform share their views on pressing questions.
November 2020
2021 Investment Outlook
,
2021 Global Economic Outlook
Our 2021 economic outlook describes the forces we believe will shape macro & market events, including significant geopolitical risks with strong 2021 growth likely.
November 2020
2021 Global Economic Outlook
,
Monthly Market Snapshot: October 2020
A monthly update on equity, fixed income, currency and commodity markets.
November 2020
Monthly Market Snapshot: October 2020
,
Waiting to exhale: election suspense and uncertainty
Macro Strategist Michael Medeiros, Global Investment Strategist Nanette Abuhoff Jacobson and Geopolitical Strategist Thomas Mucha share their latest thoughts on one of the most pivotal, hotly contested elections in US history.
November 2020
Waiting to exhale: election suspense and uncertainty
,
EMs: With great challenges come great opportunities
From health and wellness to climate change and more, the COVID-19 crisis has spawned or accelerated compelling investable themes across a range of EM countries. Against that backdrop, four of Wellington’s EM equity portfolio managers share their latest insights.
October 2020
EMs: With great challenges come great opportunities
,
Tracking the green transition in emerging markets
COVID-19 has ratcheted up environmental debates across emerging markets and highlighted the intersection of those concerns with local supply chains and infrastructure gaps. Equity Portfolio Manager Liliana Castillo Dearth looks at China as a case study.
October 2020
Tracking the green transition in emerging markets
,
The dawn of divergence and the art of subtlety
Multi-Asset Strategist Nick Samouilhan highlights the key divergences we should start to see as fundamental differences between companies, sectors, and countries begin to matter more.
October 2020
The dawn of divergence and the art of subtlety
,
Global ESG Research Update — Continuing the conversation on diversity and inclusion
Our team describes insights gained during a firmwide panel discussion with D&I officers from leading global consumer companies. We also provide an update on our ESG engagement and proxy voting activity in the quarter.
October 2020
Global ESG Research Update — Continuing the conversation on diversity and inclusion
,
We use cookies to improve your experience on our website. To accept cookies click Accept & Close, or continue browsing as normal. For more information, visit Cookies & Tracking NoticE.