Global markets delivered a constructive performance in October, despite an environment still characterised by uneven growth, elevated valuations, and ongoing policy uncertainty. Risk assets were supported by resilient corporate earnings, improving liquidity conditions, and a gradual shift toward monetary easing across major central banks. Equities advanced across most regions, though the rally remained narrow and increasingly driven by long-duration growth sectors and companies with strong balance sheets. Cyclical and trade-exposed sectors continued to face headwinds from weaker global demand, tariff-related pressures, and persistent margin challenges.

Fixed income markets also gained as global yields edged lower, driven by cooling inflation and growing confidence that central banks will continue their easing cycles. However, the pace of policy normalisation remains deliberately slow, with policymakers emphasising data dependence and the need to anchor inflation expectations. Credit delivered positive returns, but spreads remain tight across both investment grade and high yield, underscoring limited valuation buffers and the importance of rigorous issuer selection.

Beneath the broadly positive surface, dispersion across regions, sectors, and styles increased meaningfully. This divergence reinforces the need for selective positioning, a quality bias, and disciplined risk management as markets transition into a more mature phase of the global disinflation cycle.