Following the steep falls in markets in August and September, there was a sharp recovery in October, with global equity markets up by 7.9% and the riskier parts of the fixed income markets including high yield bonds, emerging market debt and convertible bonds all up by 3-4%. In contrast, yields on safe-haven government bonds in the US and UK edged up,
resulting in negative returns from this asset class over the
With investors taking advantage of better valuations, as well as the European Central Bank (ECB) clearly indicating that it is prepared to loosen policy even further at its December meeting, risk assets had their best month since October 2011. Even commodities which had been at the epicentre of recent declines managed a modest, albeit unconvincing, recovery in October.