September 2023 Market Update

Overview

September saw a pause in developed market central bank rate hikes, but also higher longer-term bond yields as investors priced in longer delays before rate cuts began. Bond prices consequently fell over the month, particularly in the US.

The ‘higher interest rates for longer’ narrative also hit equities, with most regional markets falling in local currency terms. Oil prices continued to rise as Saudi Arabia and Russia agreed to extend their production cuts to the end of 2023.

Greater uncertainty and higher US yields helped the US dollar to appreciate further against most other currencies.

Full update below…