October Commentary

UK equity market was weak as supply chain disruptions led to chip shortages and a brewing energy crisis fanned investor concerns. Strong performances from the major oil companies were not enough to offset the weakness in the mid-caps, in particular travel stocks.

The pan-European Stoxx 600 index fell 3.4% on slowing global growth and in part due to the energy crisis. Russian constraints on gas supply are helping to create a supply crunch in Europe.

US equities fell sharply on monetary policy tightening fears. For the Fed, which has dual goals of stable prices and maximum employment, the conflict of high inflation and unemployment highlights the possibility of a policy error.

China unnerved global markets as its largest property developer Evergrande looked set to default on bond payments. Investors were just coming to terms with the regulatory crackdown on companies.