Threadneedle Investments economic and market commentary - Volatility returned to equity markets in October as renewed global growth concerns (particularly in...

Threadneedle Investments economic and market commentary - Volatility returned to equity markets in October as renewed global growth concerns (particularly in Europe) weighed on investors' minds. Geopolitics has also provided an unhelpful backdrop due to ongoing problems in the Middle East and Ukraine and the continuing Ebola epidemic in some parts of Africa. Once again, the US proved to be a bright spot in the developed world in October, with the economic data remaining indicative of a steady if unspectacular recovery. Against this backdrop, the S&P 500 produced a local currency total return of 2.4%. By contrast, most European bourses finished the month in negative territory and the UK's FTSE All-Share fared little better with a sterling total return loss of -0.7%. Further afield, Japanese stocks enjoyed a very strong rally on the final day of the month as the Bank of Japan announced that it would expand its asset-purchase programme. This move suited us as we continue to favour Japanese equities in our asset allocation model. Read more: (VIEW LINK)