Overview
Global equity markets experiences substantial gains in September, driven by China's introduction of comprehensive stimulus measures
U.S. Fed Reserve initiated its easing cycle with a more significant-than-anticipated rate cut, while indicating further rate cuts potentially will follow
European equities also showed resilience, supported by a gradual recovery in business activity despite persistent economic concerns
Japanese equities declined, mainly due to a strengthening yen and rising geopolitical tensions (Middle East)
Fixed Income
U.S. treasury yields declined, with the ten-year yield hitting its lowest point since June 2023 amid growing expectations of a rate cut
Canada
Equities experienced an uptick in September, influenced by the Fed's rate cut
Health care, real estate and utilities sectors led the gains, while energy sector made the only major detraction
BoC lowered its key interest rate by 25 basis points, to 4.25%, and signalled that a larger cut could be in order if the economy needed a boost
U.S
Equities continued their upward trajectory in September, buoyed by Fed's first rate cut since March 2020
September began with a dip, following a sell-off in technology stocks and downward revisions to job figures, the market rebounded as investors shifted focus from weaker CPI numbers to the Fed's policy decision
S&P 500 Index had its strongest year-to-date performance of the 21st century, with growth and risk stocks leading the charge
All sectors, except energy and health care, posted gains
Septembers market upward momentum was also driven by a surprising increase in retail sales for August, largely driven by online shopping
Looking at the macro side, unemployment rate decreased by 4.2%, with non-farm payrolls rising by 142,000 in August
CPI also fell, signalling a retreat in inflation
Global
European equities rose slightly in September
Month began on a disappointing note due to weak manufacturing data from both the U.S. and Europe, raising concerns about economic growth
European Central Banks recent rate cut and stimulus measures from China helped foster optimism about demand recovery
Asian equities (excluding Japan) advanced in September primarily driven by strong performance in the Chinese and Hong Kong markets
Japans markets faced declines, with a stronger yen and rising geopolitical tensions dampening investor confidence
Article provided by Fidelity Investments
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