October 2024 Market Update

Overview

Global stocks were volatile during October with most equities markets declining but a weaker Sterling boosted returns for UK investors, who saw a total return of 2.7%. Signs of resilience came in the form of strong US payroll numbers at the start of the month although growth risks remain a primary concern. The upcoming US election and potential policy shifts added to uncertainty around inflation and interest rates, with markets now expecting fewer interest rate cuts in the months ahead.

The UK market was in the spotlight during the month with Chancellor Reeves delivering a £40bn package of tax rises combined with increased borrowing forecasts in a bid to boost investment in public services. Although well trailed, the market reaction was mixed with the benchmark 10 year rising 0.44% while UK stocks declined 1.8% over the month.

Attention switches in the coming days to the US, where Kamala Harris and Donald Trump are locked in a close race to the White House, with widely differing agendas in play. Stocks have largely trodden water in the run-up, with the main benchmark declining 1% while the benchmark 10 year rose 0.5% over the month.

Full update below…