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October proved a dark cloud for equity markets. In Australia stocks fell as much as 9% during the month to recover somewhat, but still finish 6% lower. This was a similar return for US equities, but Asian markets underperformed with the Japanese bourse falling 9%, and the Shanghai Composite closing 7.7% lower.
For Australian stocks, there were some clear winners and losers in the month. The winners were gold related given the market volatility… & the losers had their own unique issues (AMP -22%, Kogan -50%, & Corporate Travel Management -34%).
The RBA left interest rates on hold (1.5%), and the US Fed met last week leaving rates on hold (2.25%). The US economy grew stronger than expected at 3%. The Fed is expected to lift rates again next month, with another three rate hikes expected next year.
