Market Update - October 2019

FROM THE GLOBAL CIO OFFICE - By Candice Bangsund, Vice President and Portfolio Manager, Global Asset Allocation

Central banks and trade deliberations dominated the headlines in September, with investors thriving on the accommodative message from central banks and some conciliatory undertones from US and Chinese authorities ahead of high-level trade talks in October. The Federal Reserve took out some additional “insurance” and cut rates for a second time this year, while the European Central Bank lowered rates further into negative terrain and restarted asset purchases. And while policy was left unchanged in Canada and Japan, policymakers left the door open to further stimulus if warranted. However, in a stark reminder of the vulnerability of the macro backdrop, political drama resurfaced at month-end on the heels of impeachment inquiries in Washington, while reports that the Trump administration is considering curbing US investment in China also weighed late in the month.