- Global markets pulled back from a torrid pace set throughout July and August. The MSCI All-Country World Index was down 3.2% for the month.
- The first two months saw rallies in the global reflation trade only to see investors back away from this trade in September.
- Japan equities rallied following reports of Warren Buffett’s Berkshire Hathaway purchase of Japanese trading companies (value play) despite the unexpected resignation of prime minister Shinzo Abe.
- Europe lagged due to rising risks of a hard Brexit as prospects for a post-Brexit trade deal were threatened with U.K. Parliament’s passage of a bill targeting the Northern Ireland/Irish border.
- Precious metals came under pressure as negative real interest rates appear to have a reached a floor, while commodities were hurt by a pullback in oil prices over concerns of waning demand and OPEC overproduction.
For further details see:
Third-Quarter 2020 Market Commentary: Despite Uncertainty Around U.S. Election And Hard Brexit, Hope Springs Eternal For COVID-19 Vaccine And Government Relief