Despite ongoing trade tensions driven by President Trump’s renewed tariff agenda, global equity markets delivered solid gains in September, historically a weaker month for equities. Investor sentiment was supported by easing inflation concerns, resilient economic data, and a rate cut by the US Federal Reserve, even as a potential US government shutdown loomed.

In the US, equities advanced strongly with the S&P 500 rising 3.5%, the Dow up 1.9%, and the Nasdaq outperforming at 5.6% on continued AI-driven momentum. Inflation data showed modest increases, with headline CPI at 2.9% year-on-year and core measures steady, while earnings growth remains concentrated among large-cap technology firms. Valuations remain elevated at ~22.5x forward earnings, underpinned by policy support but vulnerable to tariff and fiscal risks.

European markets followed the upward trend, posting their best September performance since 2019. The CAC 40 gained 2.5%, the DAX was marginally weaker, and the FTSE 100 rose 1.8%. Inflation appears to have stabilised around target levels, though growth remains subdued amid structural challenges, limited fiscal flexibility, and weak external demand. Valuations remain discounted relative to the US, yet earnings revisions remain soft.

Asian markets were broadly higher, led by strong gains in Hong Kong and Japan. The Hang Seng surged 7.1%, while the Nikkei climbed 5.8%, supported by robust domestic demand and corporate reforms. China showed resilience despite tariff pressures, as technology and semiconductor sectors led performance across the region.

In South Africa, the JSE ALSI extended its winning streak to seven consecutive months, rising 6.0% in September. Resource shares dominated, with precious metals leading gains, while financials and property sectors lagged.

Overall, global markets demonstrated notable resilience against policy and trade headwinds, buoyed by improving liquidity, stabilising inflation, and selective earnings strength — albeit with growing valuation and concentration risks.