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September was characterised by a resurgence of risk aversion, against a backdrop of rising interest rates, geopolitical tensions and central banks maintaining a restrictive stance. Despite corporate earnings remaining solid, investors remained focused on tensions in the energy markets and the prospect of persistently high interest rates.
Equity markets generally fell in September. Switzerland, Europe and China recorded the sharpest declines, whilst the US held up better and Japan continued to rise. The technology sector bucked the trend, whilst consumer discretionary and financials weighed on the indices. Large-cap and growth stocks also held up better than small-caps and value stocks.
In the fixed-income markets, bonds ended the month in negative territory, weighed down by rising sovereign yields. In the foreign exchange market, the dollar’s appreciation against the Swiss franc provided some support to portfolios exposed to USD-denominated assets.
Alternative assets posted mixed results. Commodities continued to rise, buoyed by higher oil prices, whilst gold saw some profit-taking. Cryptocurrencies rebounded in September, though they failed to recoup their losses since the start of the year.
