Equities: Global markets rose, emerging markets underperform – HSBC

Global equities rose 1.5% in September, shrugging off geopolitical concerns and the FOMC decision to begin its balance sheet reduction in October, notes the analysis team at HSBC.

Key Quotes

“Japan (+4%) and Europe (+2%) led the way higher in local currency terms, whereas emerging market equities fell in aggregate for the first time this year, dragged down by Turkey (-7%) and South Africa (-4%) in particular.”

“Within Europe, currency moves again played a significant role in relative performance with UK equities suffering alongside the recovery in GBP. In contrast, Eurozone equities outperformed, with Germany up over 5% despite the political uncertainty generated by the election result as the EUR weakened.”

“There was a significant reversal in leadership at the sector level over the past month with cyclical sectors taking over from defensives. Energy led the way, up almost 8%, followed by Industrials (+3%) and Financials (+2%).  Utilities (-3%) was the worst performer, having outperformed the wider market in August.”