September proved challenging for investors as global equities declined in US dollar terms and government bond yields moved sharply higher. As bond yields and prices move in opposite directions, higher yields put pressure on bond prices and weighed on fixed income market performance. Persistent inflation concerns, resilient economic growth and expectations of further monetary tightening from major central banks weighed on both equity and fixed income markets. Energy was one of the strongest-performing sectors globally, supported by rising oil prices amid renewed tensions in the Middle East. Emerging markets also declined but proved more resilient than developed market peers, while commodities delivered positive returns as energy prices surged.
