Imperium Capital Publication

Viewpoint – October 2018

After the sharp falls in emerging market currencies and markets in the previous month, a degree of stability returned in September. With the US equity market up 0.5% and indexes reaching new all-time highs, investors might be forgiven for thinking all was well. The MSCI World Index was up 0.6% with all regions producing gains, with the exception of Asia ex Japan equity market, which fell 1.4%. Emerging market equities were down modestly, falling 0.5%, dragged down by the poor performing Asian market. Emerging market currencies recovered by 1.6% in aggregate following the significant falls in August and emerging market bonds produced strong returns of 2.8%. However the modest headline moves and low volatility in the month hid a number of worrying undercurrents.

Weekly Digest – 1 October 2018

  • Brent crude at a four year, high rising 4% to $82.7 last week
  • Gold finished the week down 0.4% at 1192.5 per ounce
  • Large Bond market sell-off over the last week continued the month’s trend
  • Volatility remained subdued across global markets in September